Cathay Pacific considers larger 787

[S V Choong 4]

HONG KONG -(Dow Jones)- Cathay Pacific Airways Ltd. (0293.HK) is considering adding a larger variant of Boeing Co.'s (BA) 787 aircraft to its fleet as the carrier expands its passenger network, Chief Executive Tony Tyler said Thursday.

 

The airline, which operates a fleet of wide-bodied jets, considers the existing 787 design as "a bit small" and its maximum service range to be shorter than it would like, Tyler told reporters.

 

Cathay Pacific's passenger network consists mainly of high-volume regional and longhaul routes. The standard 787 models carry between 210-290 passengers, according to Boeing. The manufacturer has said it is looking to develop a stretched version of the aircraft depending on customer demand.

 

The first 787 on order is scheduled for delivery in the middle of next year, Boeing said.

 

"Obviously we are looking at the 787 carefully now, but the (current models) aren't quite big enough for what we want," Tyler said. He said the 787 was designed to be a replacement for the smaller Boeing 767, which Cathay Pacific doesn't operate.

 

He said the airline isn't close to making any orders yet, given an already large mix of aircraft types the carrier now operates.

 

"We aren't ready to make any decision yet...there are lots of complexity costs involved" in maintaining a varied fleet, Tyler said.

 

Excluding its unit Hong Kong Dragon Airlines Ltd., Cathay Pacific operates seven different types or variations of passenger and cargo aircraft.

 

It will add one more type - the Boeing 777-300 Extended Range jets - by September, when the first of 19 on order will be delivered.

 

Tyler said earlier the airline is considering whether to phase out its older Boeing 747 cargo jets, which consume more fuel and are more expensive to operate.

 

Tyler had been Cathay Pacific's chief operating officer since 2005 until he took over as chief executive earlier this month.

 

He succeeded Philip Chen, who held the top post for just over two years and has taken a new position at the airline's parent company, Swire Group, as chairman of its China investment business.

 

-By Jeffrey Ng, Dow Jones Newswires; 852-2802-7002; jeffrey.ng@dowjones.com

 

(END) Dow Jones Newswires

07-26-07 0648ET

Copyright © 2007 Dow Jones & Company, Inc.

 

http://money.cnn.com/news/newsfeeds/articl...07_FORTUNE5.htm

Edited July 27, 2007 by S V Choong

[Kevin Teh 0]

I think they will launch the -10 soon despite the demand from major airlines like QF, EK and now CX... but by the time -10 flies.. XWB should be in service already

[S V Choong 4]

Swire and CX is pretty pro-European products. Especially with their RR and Airbus preference. It won't be surprising for me if they have decided to opt for A350XWB rather than 787.

[Kenneth T 0]

I hope BOEING consider the B787-10 a ject that will add range with capacity....a direct competitor for the A350XWB..haha

[BC Tam 2]

With the recent splurge of 787-8's orders, what would be the chances of securing delivery slots for new birds before the A350 flies anyway ? Not unless Boeing decides the backlog is exciting enough for them to invest in increasing production capacity

[S V Choong 4]

If MAS decides to purchase the 787s, I guess we won't see the delivery until at least year 2010+.

Not sure if Boeing will increase the output capacity unless there is a substantial hike in the order for the bird.

Unless of course other airlines are willing to give up their delivery slot by way of purchase.

 

The alternative is that they should perhaps take a look at securing the A350XWB slots?

Edited July 28, 2007 by S V Choong

[Colin Parker 0]

If MAS decides to purchase the 787s, I guess we won't see the delivery until at least year 2010+.

Not sure if Boeing will increase the output capacity unless there is a substantial hike in the order for the bird.

Unless of course other airlines are willing to give up their delivery slot by way of purchase.

 

The alternative is that they should perhaps take a look at securing the A350XWB slots?

 

 

CX is considering the 787-10 however it looks like the figures for the -10 are not as impressive as the other, shorter versions. By stretching it that much some of the superior performance is lost. The A350 however looks to be a fantastic plane, although it's design freeze has not even happened yet, so the figures Airbus are giving CX must be taken with a pinch of salt and CX knows this. They are not close to announcing an order for either.