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Cathay Pacific Orders 27 Aircraft From Boeing and Airbus
By BETTINA WASSENER
HONG KONG — Cathay Pacific, one of the biggest airlines in the Asia-Pacific, on Wednesday announced its second major aircraft order in six months, capitalizing on its strong earnings rebound of last year.
Cathay, which is seen as a bellwether for the airline industry for the region, is ordering 15 Airbus A330-300 aircraft and 10 Boeing 777-300ER planes. It has also signed a deal to lease two more Airbus aircraft.
Together, the 27 new aircraft have a list price of about 51 billion Hong Kong dollars, or $6.5 billion, though that number is subject to a “considerable discount, as is the usual practice in such transactions,” Cathay said in a statement.
The aircraft, due for delivery by 2015, come on top of an order for 36 Boeing and Airbus aircraft that Cathay announced last September.
“Cathay Pacific has ambitious plans moving forward, and we need to ensure that we have a highly efficient and environmentally friendly fleet to meet those plans, ” Tony Tyler, the airline’s departing chief executive, said in a statement.
Together with a string of orders announced by HNA Group of China, the parent of Hainan Airlines, on Tuesday, Cathay’s spending plans highlight the rapid rebound in air traffic, which has been especially pronounced in Asia.
Cathay said Wednesday that its net profit had jumped to 14 billion dollars last year, from 4.7 billion dollars in 2009.
Several other Asian airlines, including AirAsia and Korean Air Lines, also have announced improved earnings for the year in recent weeks.
Analysts and industry executives caution, however, that the rebound is unlikely to persist at last year’s rapid pace. Volatile fuel prices, which typically make up about 25 to 35 percent of airlines’ operating costs, also represent a constant element of uncertainty.
Cathay said Wednesday that its earnings “would be adversely affected, and very quickly so, by a return to recessionary economic conditions.
Increased oil prices can be expected to have a significant adverse effect on profitability if they are not recovered through higher tariffs or fuel surcharges.”
Cathay Pacific Orders 27 Aircraft From Boeing and Airbus
By BETTINA WASSENER
HONG KONG — Cathay Pacific, one of the biggest airlines in the Asia-Pacific, on Wednesday announced its second major aircraft order in six months, capitalizing on its strong earnings rebound of last year.
Cathay, which is seen as a bellwether for the airline industry for the region, is ordering 15 Airbus A330-300 aircraft and 10 Boeing 777-300ER planes. It has also signed a deal to lease two more Airbus aircraft.
Together, the 27 new aircraft have a list price of about 51 billion Hong Kong dollars, or $6.5 billion, though that number is subject to a “considerable discount, as is the usual practice in such transactions,” Cathay said in a statement.
The aircraft, due for delivery by 2015, come on top of an order for 36 Boeing and Airbus aircraft that Cathay announced last September.
“Cathay Pacific has ambitious plans moving forward, and we need to ensure that we have a highly efficient and environmentally friendly fleet to meet those plans, ” Tony Tyler, the airline’s departing chief executive, said in a statement.
Together with a string of orders announced by HNA Group of China, the parent of Hainan Airlines, on Tuesday, Cathay’s spending plans highlight the rapid rebound in air traffic, which has been especially pronounced in Asia.
Cathay said Wednesday that its net profit had jumped to 14 billion dollars last year, from 4.7 billion dollars in 2009.
Several other Asian airlines, including AirAsia and Korean Air Lines, also have announced improved earnings for the year in recent weeks.
Analysts and industry executives caution, however, that the rebound is unlikely to persist at last year’s rapid pace. Volatile fuel prices, which typically make up about 25 to 35 percent of airlines’ operating costs, also represent a constant element of uncertainty.
Cathay said Wednesday that its earnings “would be adversely affected, and very quickly so, by a return to recessionary economic conditions.
Increased oil prices can be expected to have a significant adverse effect on profitability if they are not recovered through higher tariffs or fuel surcharges.”
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