HONG Kong Airlines Ltd has signed a preliminary order for 51 Airbus SAS planes valued at about US$6 billion.
The move is part of a challenge to larger rival Cathay Pacific Airways Ltd on long-haul routes, Bloomberg News reported.
The carrier pledged to buy 30 A320-series planes, 20 A330s and an A319 ACJ corporate jet, Chairman Ren Wei Dong said yesterday at the Paris Air Show.
The closely held airline has "many channels" to fund the deal and may also sell shares, he added.
Hong Kong Air plans to use the long-haul planes to compete with Cathay Pacific on routes to Australia, Europe and the Middle East. The two airlines plan to expand as economic growth may cause air travel in China to grow an average of 8.1 percent a year until 2026, according to Boeing Co.
"The outlook for China's aviation market is positive," said Kenny Tang, associate director at Tung Tai Securities Ltd in Hong Kong.
Hong Kong Air currently operates six Boeing 737-800s and serves more than 20 Asian destinations, according to its Website. The airline plans to expand its fleet to 10 planes this year, it added. The airline, previously called CR Airways Ltd, announced plans to order 30 Boeing 737s and 10 787s in December 2005.
China push
The order has not yet been booked on Boeing's Website. The plane maker's Hong Kong-based spokesman Mark Hooper wasn't immediately available for comment.
Hong Kong Air aims to serve more cities in China, including Xi'an, Dalian and Guiyang, as well as adding flights to Japan, Singapore and the United States, according to its Website.
Robert Yip, chairman of Hong Kong-listed China Rich Holdings Ltd, founded CR Airways in 2001. The company started helicopter services in 2003 and later that year introduced Bombardier Inc CRJ200 and CRJ700 regional jets.
The airline was the third carrier after Cathay Pacific and Hong Kong Dragon Airlines Ltd to get a scheduled-flight operator's license in Hong Kong. Cathay Pacific bought the shares it didn't already own in Dragon Air last year for HK$8.22 billion (US$1.1 billion) to add flights to mainland China. The airline is also due to begin receiving 18 Boeing 777-300ERs in September, as it expands its long-haul fleet.
The Airbus A330-300 can carry 335 passengers in a two-class configuration and has a range of as far as 10,186 kilometers. It has an average list price of US$191.6 million, excluding the discounts that airlines may receive for larger purchases.