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Cathay Pacific plans A350 product and network deployment, premium economy adjustment

Analysis

The planned Feb-2016 delivery of Cathay Pacific's first A350 XWB will allow it to fulfill the strategic objectives of having the latest premium product, long-haul growth and fleet efficiency. Cathay's first new aircraft type in nearly a decade and first new aircraft family in two decades will arrive with a refreshed business class product that will be retrofitted across the long-haul fleet, reflecting how important it is during a more competitive environment for Cathay to have the latest premium product, even with relatively minor adjustments.

Another response to competition, and fulfilling demand, is long-haul growth that ensures superior network scale. A350-900s will open European destinations while -1000s will do so in North America. The aircraft also bring efficiency, which Cathay is missing as it continues to operate A340s and 747s. The A350s will arrive with an enhanced premium economy seat while the cabin will be scaled back on A330s in Australia, the Middle East and India, evidencing a false-start for a product that has otherwise found success on long-haul and ultra-long-haul flights to Europe and North America.

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