Hong Kong-based Cathay Pacific, one of Asia’s larger carriers, said on Friday it would purchase up to 15 second-hand Boeing 747-400 aircraft in anticipation of future business growth.
“Some of the planes will be converted to [cargo] freighters and some will be converted into the Cathay passenger format,” a Cathay spokeswoman said on Friday.
She did not say how much Cathay would pay for the aircraft or identify who was selling them.
The airline said that while yields have improved and business is returning to pre-SARS levels it could not yet predict which segment of the business would be stronger.
Cathay has a fleet of 83 aircraft, 11 of which are freighters. It also has three more passenger aircraft on order which are due for delivery this year and next.
“They are being opportunistic because the pricing for second hand aircraft is very attractive right now,” said Philip Wickham airline analyst at ING Financial Markets.
Wickham said Cathay needs to add some aircraft as it hasn’t embarked on a major fleet expansion for the past six years.
He says Cathay’s passenger business should show the strongest growth next year as the business segment is coming from a low base. Its growing air cargo business, however, is likely to provide a major source of revenue.
Shares in Cathay have rallied 39 percent so far this year, largely on expectations that business and leisure travel will rebound along with a global economic recovery.
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Now where to get 15 second hand 747-400 aircraft from? British Airways?
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November 1, 2003 at 7:01 pm