Cathay Pacific inks deal with Airbus for airline’s biggest-ever aircraft order

[flee 5]

Cathay Pacific Airways has signed a letter of intent to purchase 30 Airbus A350-900 aircraft, and plans to exercise purchase rights for six Boeing 777-300ERs.

 

The total value of the aircraft purchases is about HK$75 billion ($9.7 billion) at list price, says the Oneworld carrier. The A350s, to be powered by Rolls-Royce Trent XWB engines, have a catalogue price of about $7.8 billion. The General Electric-powered 777s have a list price of $1.6 billion.

 

Cathay expects the A350s to be delivered between 2016 and 2019. The A350-900, which will enter service in 2013, will "form the backbone of Cathay Pacific's future mid-sized wide-body fleet", says the carrier.

 

It will operate the aircraft across its route network, including on non-stop flights to Europe and North America.

 

"The A350-900 is a perfect fit for the development of our fleet - a mid-size long-haul aircraft that is fuel efficient, environmentally friendly, and provides the kind of capacity, range and operating economics that we need to complement and enhance our existing fleet," says Cathay's CEO Tony Tyler.

 

"The delivery schedule fits our requirements very neatly. The 30 new aircraft will be deployed to replace older aircraft and grow our fleet to meet the challenges of the future."

 

Under the letter of intent with Airbus, Cathay will pay a non-refundable commitment fee of $4.5 billion for the A350s, says the airline. It plans to make a further announcement once it enters into a formal purchase agreement with the airframer.

 

Separately, the airline agreed to exercise purchase rights for six 777-300ERs, on top of 30 777s already on firm order.

 

Cathay has received 18 of the 30 777s and expects the remaining 12 to arrive by 2013.

 

The aircraft will be operated on routes to North America and Europe, says the airline, which has a fleet of 128 wide-body aircraft currently.

 

Source: http://www.flightglobal.com/articles/2010/08/04/345740/cathay-to-purchase-30-a350s-and-six-777s.html

Edited August 4, 2010 by flee

[KK Lee 5]

CX bean counter must have getting their sums wrong, thought they should stay with A330 like MH May be by 2019, MH will has the opportunity to charge premium fare on A33E for exclusivity

 

Edited August 4, 2010 by KK Lee

[flee 5]

Unlike MH, CX has a different network that has different demands on their fleet. If you take a look at their A333's ( http://www.planespotters.net/Production_List/search.php?manufacturer=Airbus&subtype=A330-300&fleet=1788&fleetStatus=1 ) the average age is way below that of MH's. Their fleet mix is quite different.

 

I do not see much of a correlation or similarities between MH's and CX's aircraft selection.

Edited August 4, 2010 by flee

[flee 5]

 

Airbus Press Release

 

Cathay Pacific Airways today announced that it has selected the all-new A350 XWB to form the backbone of its future mid-size widebody fleet, following the signature of a Letter of Intent (LOI) with Airbus for the order of 30 aircraft.

 

The Hong Kong-based airline has selected the A350-900 variant of the aircraft, which is capable of flying over 8,000 nautical miles non-stop. This will enable Cathay Pacific to operate the aircraft across its route network, including its non-stop flights to Europe and North America. The aircraft will be powered by two new generation Rolls-Royce Trent XWB engines.

 

"The A350-900 is a perfect fit for the development of our fleet. This is a mid-size long haul aircraft that is fuel efficient, and provides the kind of capacity, range and operating economics that we need to complement and enhance our existing fleet,” said Cathay Pacific Chief Executive Tony Tyler. “The delivery schedule fits our requirements very neatly. The 30 new aircraft will be deployed to replace older aircraft and grow our fleet to meet the challenges of the future.” He added: “The purchasing process has been a rigorous and competitive one which has produced the best result for Cathay Pacific at the end of the day."

 

“We are honoured that Cathay Pacific Airways as one of the most prestigious and well managed airlines in Asia has selected the all-new A350 XWB over the competitor’s offering. We are equally pleased to welcome Cathay Pacific as our first Chinese customer for the A350”, said John Leahy, Airbus Chief Operating Officer, Customers. “The strength of our all-new, long-range, eco-efficient airliner has evidently ticked all the boxes in this very tough and professional evaluation. Offering a 25 per cent reduction in fuel-burn, the A350 XWB will enable Cathay Pacific to benefit from the lowest operating costs of any aircraft in this size category, while offering its passengers the highest levels of comfort and premium service for which the airline is renowned."

 

The A350 XWB (Xtra Wide-Body) Family is an all-new mid-size long range product line comprising three basic passenger versions seating between 270 and 350 passengers in typical three-class layouts. Scheduled for entry-into-service in 2013, the A350 Family is already one of most successful aircraft programmes ever, with a total of 535 firm orders

[KK Lee 5]

Unlike MH, CX has a different network that has different demands on their fleet. If you take a look at their A333's ( http://www.planespotters.net/Production_List/search.php?manufacturer=Airbus&subtype=A330-300&fleet=1788&fleetStatus=1 ) the average age is way below that of MH's. Their fleet mix is quite different.

 

I do not see much of a correlation or similarities between MH's and CX's aircraft selection.

 

CX is deploying their A333 to regional and Australia, similar capacity and distance as MH’s A333.

 

The last CX A333 was delivered in 2008 should be similar version as D7, SQ and MH’s newly ordered. Reasons for CX to order A350 instead of more A333 must be significant.

 

[flee 5]

I think CX carries a lot more belly cargo than MH. So that affects economics as well. They want aircraft that can balance range-payload so that the economics will work.

[Azman MN 1]

CX is deploying their A333 to regional and Australia, similar capacity and distance as MH’s A333.

 

The last CX A333 was delivered in 2008 should be similar version as D7, SQ and MH’s newly ordered. Reasons for CX to order A350 instead of more A333 must be significant.

 

 

Isn't it a simple reason? By the last delivery in 2019, their youngest A330 would be 11 years old already. If you look at the first delivery in 2016, imagine if MH would have to wait until then to replace their old A330!

[KK Lee 5]

Isn't it a simple reason? By the last delivery in 2019, their youngest A330 would be 11 years old already. If you look at the first delivery in 2016, imagine if MH would have to wait until then to replace their old A330!

 

MH could either refurbish existing A333 or lease newer A333 before A350 arrive.

 

[flee 5]

Problem with A333 leasing is that few are available due to the delays in the B787. That was why SQ had to order brand new A333s while waiting for their B787s. D7 could only find one creaky old A333 to lease. So leasing A333s is not so easy, especially newer ones (manufactured post 2000) and in the numbers that MH need them. Most airlines are still hanging on to their old A333s and not disposing of them yet.

[BC Tam 2]

That was why SQ had to order brand new A333s while waiting for their B787s

In this particular case, the wait was for the A380 if I remember correctly

It has been said the A333 lease was a appeasement offering to thwart SQ's threat of cancelling their dugongs order

All that is water having long flowed under the bridge already though

[flee 5]

Yes, that was a piece of very shrewd management by SQ. Instead of taking cash compensation (like MH did) from Airbus, they got something of greater value. It was a win-win situation too as for Airbus, the cost to them is much lower than if cash compensation was paid. And the A380 order was not cancelled.

 

I wonder what kind of compensation SQ managed to extract out of Boeing for the B787 delays... Anyway, that is way OT and perhaps we can start another thread for that!

[alberttky 0]

Cathay Pacific inks deal with Airbus for airline’s biggest-ever aircraft order

16 September 2010

 

 

Cathay Pacific Airways today concluded the purchase agreement with aircraft manufacturer Airbus for the delivery of 30 new A350-900 aircraft, representing the airline’s biggest-ever single aircraft purchase. The new acquisitions are valued at HK$60.84 billion at list price. Deliveries will begin in 2016 and are scheduled to stretch over a three year period.

 

Cathay Pacific Chief Executive Tony Tyler joined Airbus Chief Operating Officer, Customers, John Leahy to finalise the purchase agreement at a signing ceremony today.

 

Mr Tyler said: "I am delighted that we have now finalised this milestone deal for Cathay Pacific. The purchase of these new generation aircraft is an important step in our plan to grow our fleet to ensure that we stay at the forefront of the industry. The A350 fits perfectly into our operation. Its passenger capacity, flight range and operating economics are just right to become the backbone of our mid-sized long haul wide-bodied fleet."

 

The all-new A350-900 XWB ("Extra Wide Body") will replenish and expand the fleet of Cathay Pacific, serving principally long-haul destinations in Europe. The aircraft will be powered by two new-generation Rolls-Royce Trent XWB engines and is expected to deliver improved payload range capability at competitive costs, at the same time providing high standards of passenger comfort and safety.

 

Featuring an all-new design, the A350 aircraft will represent a step change in operational efficiency, burning significantly less fuel than existing aircraft of a similar size and offering a corresponding reduction in carbon emissions.

 

Commenting on the Cathay Pacific order, Mr Leahy said: “We are extremely pleased to have finalised this order with one of the world's most prestigious and well-managed airlines. The selection of the A350 XWB by Cathay Pacific is a clear endorsement of the aircraft’s compelling advantages, with lower fuel-burn, reduced operating costs and a wider, more comfortable cabin. We look forward to the aircraft playing a key role in enabling Cathay Pacific to remain at the forefront of the industry with one of the cleanest and most modern fleets in the world."

 

Cathay Pacific currently operates a fleet of 128 wide-body aircraft and with the Airbus A350 now has a total of 60 aircraft on firm order. Last month the airline also expressed its intention to exercise existing purchase rights for six more Boeing 777-300ER ultra-long-haul aircraft, which would take its total order for the type to 36.

 

The investment in the new A350 aircraft is in addition to significant investments Cathay Pacific has already committed to make between now and 2013 including aircraft already on firm order, the new cargo terminal at Hong Kong International Airport and enhanced products in the cabin and on the ground.

 

http://www.cathaypacific.com/cpa/en_HK/aboutus/pressroomdetails?refID=cd24c7651b91b210VgnVCM1000000ad21c39____

[aaronhiew 0]

Thumbs up to Swire Group...

[KK Lee 5]

Featuring an all-new design, the A350 aircraft will represent a step change in operational efficiency, burning significantly less fuel than existing aircraft of a similar size and offering a corresponding reduction in carbon emissions.

 

Wonder how will airline operating A333 compete?

 

Ooops! Forgot there is always a sugar daddy to turn to for more cash

Edited September 17, 2010 by KK Lee

[S V Choong 4]

Who might the sugar daddy be? Air China has 40+ stakes in CX, assuming the sugar daddy is Chinese government?

[BC Tam 2]

SV,

I think the sugar daddied A333 operator Mr Lee is alluding to is not CX itself

[Josh T 0]

Surely, MH must be considering the A350-900 as the eventual replacement for their new A333s after using them for 8-10 years. That way, they can place an order and not be dependent on the long waiting periods for deliveries for these aircraft.

[KK Lee 5]

Surely, MH must be considering the A350-900 as the eventual replacement for their new A333s after using them for 8-10 years. That way, they can place an order and not be dependent on the long waiting periods for deliveries for these aircraft.

 

There is no doubt, MH will replace A333 with A350 eventually. The problem is before they receive A350 e.g. in 2021, can they compete or profitable between 2016 and 2021?

 

[Josh T 0]

There is no doubt, MH will replace A333 with A350 eventually. The problem is before they receive A350 e.g. in 2021, can they compete or profitable between 2016 and 2021?

 

When is the first delivery of the A350 expected to be?

[S V Choong 4]

SV,

I think the sugar daddied A333 operator Mr Lee is alluding to is not CX itself

Okay, I just didn't know why every conversation topic has to link with the said airline, that's all.

[flee 5]

When is the first delivery of the A350 expected to be?

It is scheduled for entry-into-service in 2013.

[KK Lee 5]

Okay, I just didn't know why every conversation topic has to link with the said airline, that's all.

 

You can take a man out of kampong/new village but can’t take kampong/new village out from a man

[BC Tam 2]

..... I just didn't know why every conversation topic has to link with the said airline .....

 

To sprinkle it with a touch of local flavour I suppose

This here is MalaysianWings after all

Well, either that or it's the 'kampong/new village' inner being amongst us reaching out

 

You can take a man out of kampong/new village but can’t take kampong/new village out from a man

 

Sorry, OT lagi

[S V Choong 4]

To sprinkle it with a touch of local flavour I suppose

This here is MalaysianWings after all

Well, either that or it's the 'kampong/new village' inner being amongst us reaching out

 

Fair enough, good luck with the pursuit of persuading the village head. History has taught us, that has been a very tough, challenging and imposssible job to do.

[flee 5]

Cathay firms up order for 6 777s

Cathay Pacific firmed up its previously announced commitment for six more 777-300ERs worth HK$12.5 billion ($1.61 billion) at list prices (ATW Daily News, Aug. 5).

 

This order would bring to 36 the number of 777ERs in its fleet, comprising 18 aircraft in service and 12 aircraft scheduled for delivery from 2011 to early 2013. The six newly purchased 777-300ERs will be delivered in 2013 and 2014.

 

CX CEO Tony Tyler noted at the signing that the 777-300ER is a “superb aircraft” that has already significantly enhanced operations on key long-haul routes.

 

“We have been very impressed by the operating economics of these aircraft, while their high efficiency has resulted in a reduced environmental impact. As we continue to enhance our fleet, the 777-300ER will play a crucial role in our operations in the years to come,” Tyler said.

 

CX operates a fleet of 128 wide-body aircraft, which also includes 12 777-300s, five 777-200s, 22 747-400s and 25 747-400Fs.

 

The airline has 10 747-8Fs on order for delivery in 2011 and firmed up a commitment for 30 A350s last week (ATW Daily News, Sept. 17).

 

Source: http://atwonline.com/aircraft-engines-components/news/cathay-firms-order-6-777s-0921