Cathay Pacific Places Its Biggest Order for Aircraft (Update1)
Dec. 1 (Bloomberg) -- Cathay Pacific Airways Ltd., Hong Kong's largest carrier, said it will buy or lease 19 Boeing Co. and Airbus SAS aircraft valued at $4.6 billion, in its biggest single order of planes that can carry more than 300 people each.
The airline will buy 12 Boeing 777-300ERs and lease four of the same model from the International Lease Finance Corp., Hong Kong-based Cathay Pacific said today. It has options for 20 more 777-300ERs. Cathay Pacific will also lease three Airbus A330-300s from the leasing company.
The aircraft will be delivered between September 2007 and July 2010, Cathay Pacific said.
Cathay Pacific, which operates 95 planes, has been expanding as economic growth worldwide spurs business and leisure travel. In April 2004, the airline placed an order for three Airbus A330- 300s and leased three more of the same model.
It also ordered two Boeing 777-300 aircraft, which can fly as far as 8,500 nautical miles (15,742 kilometers) and carry as many as 365 passengers in standard seating arrangements. The planes cost $218 million to $245.5 million each at list prices.
Singapore Airlines Ltd., Asia's most profitable carrier, has said it will seek proposals from aircraft makers as it plans to add as many as 30 new aircraft for regional and medium-haul flights from 2009 and beyond.
The A330-300 from Airbus has a catalog price of between $170 million and $180 million and can seat 335 passengers in standard three-class configuration.
Cathay Pacific shares rose 0.7 percent to HK$13.55 in Hong Kong. The stock has dropped 7.8 percent this year, compared with a 6 percent gain on the Hong Kong Hang Seng index.
To contact the reporter on this story:
Vicki Kwong in Hong Kong at vkwong@bloomberg.net
Last Updated: December 1, 2005 04:05 EST
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