Cathay Dragon eyes HK$30 billion order of aircraft, raising fleet investment by 50 per cent
Cathay Pacific subsidiary eyes up to 32 new planes in what would be largest order since 2000
Extra money is being aimed at giving Cathay Pacific’s older lounges a fresh makeover. The lounges have brought global awards to the airline, one of Asia’s largest premium carriers.
Cathay Pacific lounges in Shanghai, Beijing and Seoul are set to be renovated by 2019, while a new facility in Singapore and the latest Hong Kong airport lounge makeover are due to be unveiled later this year.
The airline’s product general manager, James Evans, said the company was “committed to investing for the customer as we continue our review to renew Cathay Dragon’s narrow-body fleet and expand our acclaimed airport lounges”.
Evans said the lounge renovation plans were well under way, buoyed by what he claimed was positive feedback from passengers regarding the new, higher quality facilities.
“At the moment, we are assessing different options that will provide the best operating economics and growth opportunities,” he said of the fleet plan for Cathay Dragon.
Cathay Pacific’s CEO-designate, Rupert Hogg. previously told the Post about the new aircraft order. “Depending on how many seats you will put in whatever aircraft we buy, you might replace a wide body with a narrow body,” he said. “You might put in more frequency and less capacity.”
A final decision is to be made this summer, and the first of up to 32 new aircraft is to arrive in 2019.
The choice of technologically advanced jets comes down to Airbus’s A320neo and Boeing’s 737 Max in what would be the operator’s biggest order since 2000.
Cathay Dragon has been a long-standing Airbus customer and currently has a fleet of 15 Airbus A320s and eight larger A321s. It also has a fleet of 23 twin-aisle Airbus A330 planes.
The two airlines fly 167 passenger aircraft.
The cost of the potential bumper order is based on the fleet’s like-for-like replacement with the A320neo at US$108.4 million each and A321neo for US$127 million, plus the extra planes – or HK$30 billion at list price. But airlines typically negotiate deep discounts for large orders.
The new neos and Boeing 737 Max planes are in demand for their fuel efficiency. Budget carrier HK Express’s new A320neos burn up to 24 per cent less fuel on average, according to the airline.
However, the new aircraft has seen a host of engine issues. Other A320neo operators such as US-based Spirit Airlines as well as Indigo and Go Air, both of India, have reported problems.