CATHAY Pacific Airways Ltd, Hong Kong's largest airline, agreed to buy 17 Boeing airplanes, valued at approximately US$5.2 billion, because of China's rising travel and air-cargo demand.
The order comprises seven 777-300ERs and 10 747-8 cargo planes, the airline said in a Hong Kong Stock Exchange statement yesterday. The carrier, which also took options for another 14 747-8 freighters, received "significant price concessions," it added.
Cathay Pacific plans to expand its fleet as China's economic growth rate of at least 11 percent boosts travel and trade in the world's most populous country. The new planes will replace older, less fuel-efficient ones, helping the airline cut its fuel bills as the price of oil nears US$100 a barrel, Bloomberg News said.
"Cathay needs more airplanes to support its expansion" in China, said Edward Wong, an analyst at Quam Ltd in Hong Kong.