10-Mar-2011 8:55 AM

Cathay Pacific orders 10 B777-300ERs for North America and Europe network

Cathay Pacific and Boeing entered (09-Mar-2011) into an agreement covering the purchase of 10 B777-300ER aircraft. The aircraft are valued at USD2.7 billion at list price although the carrier received "significant price concessions" for the purchase. The consideration for the purchase of each aircraft is payable in cash in six instalments, with the first five instalments to be paid prior to delivery of each aircraft and the balance, being a substantial portion of the consideration, to be paid upon delivery of the aircraft. The transaction will be funded through commercial bank loans, other debt instruments of Cathay Pacific and/or cash generated from the company’s business operations. The company is expecting to take delivery of the aircraft from 2014 to 2015. The aircraft will principally serve long-haul destinations in North America and Europe. Cathay Pacific first announced its selection of the 777-300ER for its fleet requirements in 2005. With this order, Cathay Pacific will increase its B777-300ER planned fleet from 36 to 46 (including four leased). It is the fifth increase in its acquisition plans for the aircraft. In additions to B777-300ER, Cathay Pacific operates 12 B777-300s, five B777-200s, 45 B747-400s in both passenger and cargo versions. The airline also has ordered 10 B747-8 Fs. Swire and Air China, which together own approximately 72.96% of the issued share capital of the company, have approved the purchase. [more - Cathay]  [more - Boeing]

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