Cathay Pacific and BOC Aviation sign purchase and leaseback agreement
Cathay Pacific and BOC Aviation signed (16-Sep-2009) an agreement for the sale and leaseback of six of 19 B777-300ER aircraft the airline currently has on order. The aircraft are scheduled to be delivered from 4Q2009 until 2Q2011. All aircraft will be on long-term leases. Cathay reiterated it has no intention of cancelling aircraft orders, but is "in negotiation with aircraft manufacturers to defer some of our deliveries to align our capacity with expected demand". Cathay Pacific currently has 39 aircraft on order for delivery before 2013. At present, there are 122 aircraft in its fleet, 25 of which are leased. BOC Aviation stated that 24% of future delivery commitments are destined for China and widebody aircraft will account for approximately 16% of its fleet by mid-2013 when all current orders and committed purchase and leasebacks have been delivered.[more]
Cathay Pacific: “This landmark agreement with BOC Aviation is consistent with our cash-preservation priority during this difficult time. It also dovetails with our long-term fleet-management strategy to maintain an appropriate balance between owned and leased aircraft. As we have said repeatedly, Cathay Pacific has no intention to cancel aircraft orders. However, this deal with BOC Aviation will play a key role in our strategic plan by providing us with invaluable financial and operational flexibility," Tony Tyler, CEO. Source: Company Statement, 16-Sep-2009.