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Hong Kong's Cathay Pacific to pay about 475 mln usd for two Boeing aircraft


HONG KONG (XFN-ASIA) - Cathay Pacific Airways said it will spend about 475 mln usd for the two advanced wide-body 777-300ER aircraft it is acquiring from Boeing in its latest purchase commitment announced yesterday.

The price is "subject to escalation," said Cathay, while noting that it has been granted "significant price concessions" which may be used toward the payment for the aircraft.

The company announced yesterday that it has placed orders for two advanced wide-body Boeing 777-300ER aircraft, increasing its commitment to a total of 18 aircraft, since the airline announced its biggest ever order for new aircraft last December.

Last year, the airline made commitments for 16 Boeing 777-300ER aircraft with purchase rights for 20 more.  

It has now exercised the purchase rights for two aircraft.

Cathay said in its latest release that it will pay for the purchase in cash in six instalments. It said the purchase will be funded through bank loans other debt instruments and cash generated from its business.

The aircraft, which will be delivered in 2008, will be used for long-haul destinations in North America and Europe.  

"The company expects that the Boeing aircraft will deliver improved payload range capability at competitive operating costs," it said.

(1 usd = 7.8 hkd) 

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