HONG KONG- Cathay Pacific Airways (CX), based in Hong Kong (HKG), has announced the purchase of 32 A321neo aircraft from Airbus for a total cost of $4.66 billion.
This transaction follows an agreement between an Airbus subsidiary and the aircraft procurement agents of Hong Kong’s flagship carrier in September 2017.
Cathay Pacific Buys 32 Airbus A321neo
Cathay Pacific anticipates the delivery of these aircraft to be completed by the end of 2029, thereby expanding the fleet capacity of one of its subsidiaries, Hong Kong Express.
Swire Pacific, a Hong Kong-based conglomerate, and Air China (CA), both of which collectively hold more than 50% of Cathay’s voting rights, have approved this deal, as confirmed in an airline filing.
It’s important to note that Swire Pacific and Air China have no vested interest in the transaction beyond their roles as shareholders.
Leasing More Planes
Cathay is collaborating with leasing companies with existing orders, enabling them to acquire the aircraft more promptly than if they were to engage Airbus directly.
Increased demand for aircraft due to significant orders placed by airlines like IndiGo (6E) has led to leasing firms becoming an attractive option for securing planes for various operators.
Securing 18 aircraft through this arrangement would contribute to Cathay’s objective of obtaining leased planes.
As Airbus has almost filled up its delivery slots for A320neo-family aircraft until 2029, Cathay is pursuing this route to expedite its acquisition.
Strong Rebound After Pandemic
Cathay Pacific (CX), the Hong Kong-based airline that has recently resumed flights between South Africa and Asia, has revealed plans to expand its operations.
As the airline ramps up its services, it is considering the addition of new routes and an increase in flight frequencies, reports IOL.
In an interview this week, Rakesh Raicar, the Regional General Manager for South Asia, Middle East & Africa, attributed this expansion to the pent-up demand of the past three years. During this period, the airline experienced strong demand on many of its routes.
“We have achieved 50% of our pre-Covid passenger travel capacity and are on track to reach 70% by the end of the year. Furthermore, our cargo capacity is projected to reach 85% of pre-Covid levels by the close of 2023,” Raicar stated.
Cathay Pacific informed Business Report that with the reinstatement of its flights to Hong Kong, South African passengers can now access Hong Kong and various destinations such as Shanghai, Beijing, Xiamen, Hangzhou, Guangzhou, and more via Hong Kong.
Additionally, as the demand for corporate and leisure travel to Southeast Asian regions returns to pre-pandemic levels, the revival of flights to Hong Kong strengthens the convenience of connecting to the Greater Bay Area through their intermodal transport services.
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