Cathay Pacific Airways Ltd plans to buy or lease as many as nine medium-sized passenger aircraft, expanding its fleet to take advantage of increasing demand for air travel.
Cathay is considering Boeing Co's 777-300 and Airbus SAS's A330-300 aircraft, which can seat between 335 and 480 passengers, said corporate development director Tony Tyler in an interview.
The Hong Kong-based carrier wants the planes delivered by 2007.
"We are in discussions with Boeing, Airbus and some leasing companies to discuss the acquisition or leasing of regional aircraft," Tyler said. "These discussions are already well advanced and we'll be able to announce them fairly soon."
Cathay, Singapore Airlines Ltd and other Asian rivals are expanding or upgrading their fleets as passenger traffic recovers from the SARS outbreak last year. The International Air Transport Association has said airlines worldwide may make a combined profit of US$2 billion to US$4 billion this year, compared with losses of over US$30 billion in the last three years.
Hong Kong-based Cathay also expects to complete its purchase of some used Boeing 747-400 planes soon, some of which will be converted into freighters, Tyler said.
"The market price for the 747-400 is falling and Cathay will be able to pick up cheap aircraft," said Jim Eckes, managing director of airline consultancy Indoswiss Aviation. "That's a smart deal and they can then put off the decision on getting the A380."
Toulouse-based Airbus SAS, which last year delivered more planes than Boeing, wants to win more Asian customers for its 550-seat A380 plane, which will compete with Boeing's 747-400 aircraft.
Cathay on Wednesday posted a smaller-than-expected drop in second-half profit as it cut costs, restored flights and ended fare discounts following the containment of the SARS virus. Net income fell 1 percent to HK$2.54 billion (US$326 million).
Travel demand in Asia is improving, with Cathay's bookings for March and April "looking very solid," Tyler said.
WAITING GAME: The US has so far only offered a ‘best rate tariff,’ which officials assume is about 15 percent, the same as Japan, a person familiar with the matter said Taiwan and the US have completed “technical consultations” regarding tariffs and a finalized rate is expected to be released soon, Executive Yuan spokeswoman Michelle Lee (李慧芝) told a news conference yesterday, as a 90-day pause on US President Donald Trump’s “reciprocal” tariffs is set to expire today. The two countries have reached a “certain degree of consensus” on issues such as tariffs, nontariff trade barriers, trade facilitation, supply chain resilience and economic security, Lee said. They also discussed opportunities for cooperation, investment and procurement, she said. A joint statement is still being negotiated and would be released once the US government has made
NEW GEAR: On top of the new Tien Kung IV air defense missiles, the military is expected to place orders for a new combat vehicle next year for delivery in 2028 Mass production of Tien Kung IV (Sky Bow IV) missiles is expected to start next year, with plans to order 122 pods, the Ministry of National Defense’s (MND) latest list of regulated military material showed. The document said that the armed forces would obtain 46 pods of the air defense missiles next year and 76 pods the year after that. The Tien Kung IV is designed to intercept cruise missiles and ballistic missiles to an altitude of 70km, compared with the 60km maximum altitude achieved by the Missile Segment Enhancement variant of PAC-3 systems. A defense source said yesterday that the number of
Taiwanese exports to the US are to be subject to a 20 percent tariff starting on Thursday next week, according to an executive order signed by US President Donald Trump yesterday. The 20 percent levy was the same as the tariffs imposed on Vietnam, Sri Lanka and Bangladesh by Trump. It was higher than the tariffs imposed on Japan, South Korea and the EU (15 percent), as well as those on the Philippines (19 percent). A Taiwan official with knowledge of the matter said it is a "phased" tariff rate, and negotiations would continue. "Once negotiations conclude, Taiwan will obtain a better
FLOOD RECOVERY: “Post-Typhoon Danas reconstruction special act” is expected to be approved on Thursday, the premier said, adding the flood control in affected areas would be prioritized About 200cm of rainfall fell in parts of southern Taiwan from Monday last week to 9am yesterday, the Central Weather Administration (CWA) said. Kaohsiung’s Taoyuan District (桃源) saw total rainfall of 2,205mm, while Pingtung County’s Sandimen Township (三地門) had 2,060.5mm and Tainan’s Nanhua District (南化) 1,833mm, according to CWA data. Meanwhile, Alishan (阿里山) in Chiayi County saw 1,688mm of accumulated rain and Yunlin County’s Caoling (草嶺) had 1,025mm. The Pingtung County Government said that 831 local residents have been pre-emptively evacuated from mountainous areas. A total of 576 are staying with relatives in low-lying areas, while the other 255 are in shelters. CWA forecaster
RSS