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CX Seeks US$300m For New Aircraft  
User currently offlineZeke From Hong Kong, joined Dec 2006, 9113 posts, RR: 75
Posted (7 years 7 months 3 weeks 3 days 5 hours ago) and read 6183 times:

from http://www.thestandard.com.hk/news_d...12154444&con_type=1&d_str=20070210

"Cathay Pacific Airways (0293) is seeking a five-year syndicated loan of US$300 million (HK$2.34 billion) to finance increasing capital expenditures."

"Cathay is increasing capital spending on new aircraft and new product refurbishment. It expects to have 125 planes in its fleet by 2010.

It plans to spend at least HK$9.5 billion in the next two years, and a minimum of HK$10 billion in 2009, to improve its capacity, chief operating officer Tony Tyler said last month."

"At present, there is something of a long-haul bottleneck because it is hard to increase load factors. But the long- haul share of capacity will increase after we take delivery of new Boeing 747s and our 777 ERs."

Cathay also wants to position itself as Asia's No 1 combined passenger and cargo carrier by acquiring new freighters after 2009."


We are addicted to our thoughts. We cannot change anything if we cannot change our thinking – Santosh Kalwar
12 replies: All unread, jump to last
 
User currently offlineEbbUK From , joined Dec 1969, posts, RR:
Reply 1, posted (7 years 7 months 3 weeks 3 days 2 hours ago) and read 5998 times:

Quoting Zeke (Thread starter):
Cathay also wants to position itself as Asia's No 1 combined passenger and cargo carrier by acquiring new freighters after 2009."

Without the 380? Don't see it myself.


User currently offlineKaitak From Ireland, joined Aug 1999, 12482 posts, RR: 34
Reply 2, posted (7 years 7 months 3 weeks 3 days 2 hours ago) and read 5978 times:

I think that, as of now, with UPS on the point of cancelling, the A380F is on ice. If CX goes for large cargo aircraft, it will go for 747-8Fs, although I doubt if it would rule out 777-200Fs. Given its experience with early A340-600s, I don't think CX wants to be one of the early customers for an Airbus aircraft.

That said, I don't think they'll be too disappointed; I think CX will be a significant customer for both the pax and cargo models of the 747-8, and ultimately, the 787-9/10.


User currently offlineBrianDromey From Ireland, joined Dec 2006, 3920 posts, RR: 9
Reply 3, posted (7 years 7 months 3 weeks 3 days 1 hour ago) and read 5898 times:

Maybe their former oneworld partner EI could loan them teh cash, God knows EI dont seem to have any interest in spending i on new aircraft for themselves!  biggrin 


Next flights: MAN-ORK-LHR(EI)-MAN(BD); MAN-LHR(BD)-ORK (EI); DUB-ZRH-LAX (LX) LAX-YYZ (AC) YYZ-YHZ-LHR(AC)-DUB(BD)
User currently offlineLumberton From United States of America, joined Jul 2005, 4708 posts, RR: 20
Reply 4, posted (7 years 7 months 3 weeks 3 days 1 hour ago) and read 5878 times:

Is CX seeking the financing to pay for aircraft already ordered, or to order new aircraft?


"When all is said and done, more will be said than done".
User currently offlineZeke From Hong Kong, joined Dec 2006, 9113 posts, RR: 75
Reply 5, posted (7 years 7 months 3 weeks 3 days ago) and read 5780 times:

Quoting Lumberton (Reply 4):
Is CX seeking the financing to pay for aircraft already ordered, or to order new aircraft?

The aircraft are on order, 330s, 777s, 747s.



We are addicted to our thoughts. We cannot change anything if we cannot change our thinking – Santosh Kalwar
User currently offlineCloudyapple From Hong Kong, joined Jul 2005, 2454 posts, RR: 10
Reply 6, posted (7 years 7 months 3 weeks 3 days ago) and read 5737 times:

Quoting Lumberton (Reply 4):
Is CX seeking the financing to pay for aircraft already ordered, or to order new aircraft?

125 planes have all been accounted for (and more)

100 existing aircraft (Cathay mainline, excluding Dragon and AHK)
------------------------------
7 B742F
21 B744
6 B744F
4 B744BCF
27 A333
15 A343
3 A346
5 B772
12 B773

Plus 2 wet leases
------------------------------
1 B742F on wet lease
1 A30B on wet lease

Plus 36 Firmed Future Deliveries
------------------------------
18 B773ER
5 A333
3 B744
4 B744BCF
6 B744ERF

Company said 43 future deliveries (until 2010) but that probably includes those destined for Dragon.
Anyone knows what the missing 7 aircraft are?

[Edited 2007-02-11 15:07:41]


A310/A319/20/21/A332/3/A343/6/A388/B732/5/7/8/B742/S/4/B752/B763/B772/3/W/E145/J41/MD11/83/90
User currently offlineEBJ1248650 From United States of America, joined Jun 2005, 1932 posts, RR: 1
Reply 7, posted (7 years 7 months 3 weeks 2 days 13 hours ago) and read 5081 times:

Quoting Kaitak (Reply 2):



Quoting Kaitak (Reply 2):
I think that, as of now, with UPS on the point of cancelling, the A380F is on ice.

Why is it members of this forum are so sure the UPS A380 contract will be cancelled? Ordering 27 767 freighters doesn't, in my opinionl, mean UPS has thrown in the towel so far as the A380 is concerned.



Dare to dream; dream big!
User currently offlineElvis777 From United States of America, joined Aug 2005, 360 posts, RR: 3
Reply 8, posted (7 years 7 months 3 weeks 2 days 9 hours ago) and read 4093 times:

Howdy all,

Latest from AW&ST that addresses some of your points here (as well as others..)

"It may be summer before Airbus learns whether its sole remaining A380 freighter customer, UPS, stays committed to the program, but company officials see an opportunity in Cathay Pacific to shore up the struggling variant.

The Asian carrier is expected to issue a request for proposals in the coming months for a large cargo hauler. The competition would pit the A380 against the Boeing 747.

If the cargo solicitation materializes, the Cathay deal will be crucial for both Airbus and Boeing in the freighter world this year as the British Airways selection appears to be between the 747-8 and A380 on the passenger side...."

It is from here:

multi-tasking
Aviation Week & Space Technology
02/12/2007, page 39

Robert Wall
Toulouse

it also has some other nifty stull that will make the eads guys happy and some that will not. i.e leahy says the market for vlas was actually understimated by eads, he expects it to be much larger. and ... 20 new whalejets but to existing customers not new customers...

I guess this means they are not counting on the CS freighter order?

As well as some that just validates milestones (for example the first 380 will not be delivered early but rather it is expected that it will be delivered on time.

"...Meanwhile, Airbus is continuing to closely monitor progress on MSN003, the first Singapore aircraft. Cabin installation has begun and the program is largely on plan, but Heinen concedes it has taken extra effort, at times, to maintain the schedule margin built into the program when it was last restructured in September 2006....."


Peace

Elvis777



Leper,Unevolved, Misplaced and Unrepentant SportsFanatic and a ZOMBIE as well
User currently offlineOldAeroGuy From United States of America, joined Dec 2004, 3527 posts, RR: 67
Reply 9, posted (7 years 7 months 3 weeks 2 days 9 hours ago) and read 4021 times:

Quoting Zeke (Thread starter):
"Cathay Pacific Airways (0293) is seeking a five-year syndicated loan of US$300 million (HK$2.34 billion) to finance increasing capital expenditures."

This amount of money won't buy many new aircraft. Even with substantial discounts, it's probably only good for 2 to 4 at most.



Airplane design is easy, the difficulty is getting them to fly - Barnes Wallis
User currently offlineElectech6299 From United States of America, joined Aug 2005, 616 posts, RR: 3
Reply 10, posted (7 years 7 months 3 weeks 2 days 8 hours ago) and read 3745 times:

Quoting OldAeroGuy (Reply 9):
This amount of money won't buy many new aircraft. Even with substantial discounts, it's probably only good for 2 to 4 at most.

I was thinking the same thing, then I remembered the real kicker is financing costs. If the company is stretched thin on cash reserves, the financing on future orders will be tenuous, limited, and expensive. But if they can get a little cash to have in hand to secure credit during an order, it makes future financing less expensive. So in the end, the only cash they really need to borrow is to cover the financing costs. It always struck me as a paradox- borrow money to get better credit- but it seems to work in big business.

Just my  twocents 



Send not to know for whom the bell tolls...it tolls for thee
User currently offlineKC135TopBoom From United States of America, joined Jan 2005, 12150 posts, RR: 51
Reply 11, posted (7 years 7 months 3 weeks 2 days 6 hours ago) and read 3402 times:

Quoting Zeke (Thread starter):
"Cathay Pacific Airways (0293) is seeking a five-year syndicated loan of US$300 million (HK$2.34 billion) to finance increasing capital expenditures."

"Cathay is increasing capital spending on new aircraft and new product refurbishment. It expects to have 125 planes in its fleet by 2010.

It plans to spend at least HK$9.5 billion in the next two years, and a minimum of HK$10 billion in 2009, to improve its capacity, chief operating officer Tony Tyler said last month."

It looks like they plan on spending at least HK$21.84B on aircraft purchases over the next 2 years. By my calcualtions, that is over $3.5B US. That is good for 33-43 new airplanes, depending on the discount prices and the mix of airplanes they buy. It does not seem to be enough to buy more than 2-3 A-380Fs (and still buy 40 other airplanes), if they were to go that way.

Quoting Cloudyapple (Reply 6):
125 planes have all been accounted for (and more)

100 existing aircraft (Cathay mainline, excluding Dragon and AHK)
------------------------------
7 B742F
21 B744
6 B744F
4 B744BCF
27 A333
15 A343
3 A346
5 B772
12 B773

Plus 2 wet leases
------------------------------
1 B742F on wet lease
1 A30B on wet lease

Plus 36 Firmed Future Deliveries
------------------------------
18 B773ER
5 A333
3 B744
4 B744BCF
6 B744ERF

My guess is the 2 wet lease airplanes will be replaced, as well as the 7 B-747-200Fs, 15 A-340-300s, 6 A-340-600s and 5 B-777-200s. That is 35 airplanes to be replaced (unless some of the B-747-400s are also replaced). So, does that mean another 8 airplanes for fleet expansion over the next 4 years?

With what they currently have, and have on order, I don't see any more B-777-300ERs here, as they will have 30 of them. What seems to me is they have a choice to order some B-747-800Is, B-747-800Fs, B-777-200Fs, A-330-200Fs, A-330-300s, and maybe some B-777-200LRs. So, no, I just don't see any A-380-800s or A-380-800Fs for CX. At least not with about $3.5B US available for new airplanes.


User currently offlineSSTsomeday From Canada, joined Oct 2006, 1276 posts, RR: 1
Reply 12, posted (7 years 7 months 3 weeks 2 days 6 hours ago) and read 3327 times:

Quoting Zeke (Thread starter):
Cathay also wants to position itself as Asia's No 1 combined passenger and cargo carrier by acquiring new freighters after 2009."



Quoting EbbUK (Reply 1):
Without the 380? Don't see it myself.

A tad biased of you, wouldn't you say?

Quoting OldAeroGuy (Reply 9):
This amount of money won't buy many new aircraft. Even with substantial discounts, it's probably only good for 2 to 4 at most.

The figure seemed low to me as well. Perhaps it's just for deposits or to secure financing?



I come in peace
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