raggi
Posts: 879
Joined: Mon Oct 23, 2000 4:34 am

Cathay To Order New Aircraft?

Thu Mar 11, 2004 5:34 am

check out this story from Airwise.com

http://news.airwise.com/stories/2004/03/1078912109.html

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March 10, 2004
Cathay Pacific Airways said Wednesday its second-half profit fell just one percent, beating forecasts as cost cuts and currency gains offset fare discounts.

Hong Kong-based Cathay, which suffered its worst-ever loss in the first half of 2003 due to SARS, is expected to enjoy a better 2004 as it taps new markets, despite rising competition from traditional rivals and new no-frills carriers.

"The recovery of the second half came quicker than initially expected and was attributable to both pent-up demand, especially from business travellers, and special offers," Cathay Chairman James Hughes-Hallett told a news conference

Airlines in Asia are recovering from an industry slump after the outbreak of Severe Acute Respiratory Syndrome (SARS) last spring, which hit passenger traffic and forced airlines to slash flights.

"We now feel confident that we can resume a growth pattern," Hughes-Hallett added. "But we are in a volatile industry that is extremely subject to external factors."

Cathay, which has a market value of USD$7 billion, said net profit for the six months ended December 31 totalled HKD$2.54 billion (USD$326 million), compared with HKD$2.57 billion (USD$330 million) a year earlier, according to calculations based on Cathay's annual results.

Cost savings, a weaker US dollar and robust cargo business helped Cathay claw back from a massive HKD$1.24 billion (USD$159 million) loss in the first half.

Hong Kong's currency is pegged to the US dollar, which weakened substantially against most major currencies last year and Cathay said gains were expected to continue in early 2004.

CONVINCING

Cathay's turnaround contrasts with Japan Airlines System, which on Wednesday widened its year net loss forecast, citing rising fuel costs and a sluggish recovery after SARS.

Analysts expect Cathay to triple profits this year to around HKD$4.1 billion (USD$526 million).

Operating costs fell 3.5 percent despite an 18.5 percent average rise in its fuel price and the airline enjoyed a foreign exchange gain of HKD$244 million (USD$31.3 million), 36 percent higher than in 2002.

Analysts said Cathay's cost reductions were impressive given the industry's high fixed costs, but some said the stock looked expensive compared with its peers.

"The gains mainly come from non-operating items. The currency gain was more than double my estimate," said Phil Wickham, analyst at ING Financial Markets.

Annual earnings totalled HKD$1.3 billion (USD$167 million), down 67 percent from 2002, as full-year turnover fell 10.6 percent to HKD$33.1 billion (USD$4.25 million).

EXPANSION, NEW PLANES

Cathay began flying to Beijing three times a week in December and plans to expand further into the fast-growing China market. It said on Wednesday it will launch a daily non-stop service to New York.

The airline said it is in talks with plane makers Boeing and Airbus and would announce an order in four to six weeks.

But the airline faces stiff competition from local rival Dragonair, which has begun flying to Bangkok and starts flights to Tokyo soon -- two of Cathay's mainstay markets -- as well as from low cost carriers such as Malaysia's Air Asia.

Hughes-Hallett said Cathay was looking carefully at the low-cost carrier model. "Whether we will respond defensively or pro-actively remains to be seen. It's not a given that the low cost model will be successful in Asia," he said.

The airline said it would pay total dividends of HKD$0.48 per share for 2003, 9.1 percent more than the HKD$0.44 in 2002. Cathay took the unusual move of halving its 2002 annual dividend to preserve cash as SARS devastated its business.

(Reuters)

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what do yo think? More 333s, 773s or 773ERs ?

raggi
Stick & Rudder
 
ConcordeBoy
Posts: 16852
Joined: Thu Feb 01, 2001 8:04 am

RE: Cathay To Order New Aircraft?

Thu Mar 11, 2004 5:38 am

what do yo think? More 333s, 773s or 773ERs ?

The order is expected to be both of the former two.
Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
 
as739x
Posts: 5001
Joined: Tue Apr 15, 2003 7:23 am

RE: Cathay To Order New Aircraft?

Thu Mar 11, 2004 5:39 am

Maybe they will launch their rumored 2nd SFO-HKG flight. My understanding was it would be launched prior to 9/11 then obviously we know what happened.

ASSFO
"Some pilots avoid storm cells and some play connect the dots!"
 
Horus
Posts: 5131
Joined: Sun Feb 22, 2004 1:04 am

RE: Cathay To Order New Aircraft?

Thu Mar 11, 2004 6:06 am


They might order come B777-300ERs to replace their ageing 744s, as nothing seems to be happening with the rumour that they'll be buying some of BA's 744s. It would fit nicely with their current 773 fleet. Though the A346 might get it. Why did Cathay Pacific only order 3 of them? Seems like a small number for such a large airline.
EGYPT: A 7,000 Year Old Civilisation
 
Jaws707
Posts: 667
Joined: Mon Aug 06, 2001 10:45 am

RE: Cathay To Order New Aircraft?

Thu Mar 11, 2004 6:35 am

Horus:
CX actually did not order the 3 A346's, but instead leased them, and I would imagine that if they do not order more then the A346's will be going back when the lease expires. I was thinking maybe CX will annouce that they will be leasing the 3 remaining passenger A380's ILFC has available for lease?
 
ConcordeBoy
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Joined: Thu Feb 01, 2001 8:04 am

RE: Cathay To Order New Aircraft?

Thu Mar 11, 2004 6:42 am

Why did Cathay Pacific only order 3 of them?

They planned to short-term lease them for the nonstop to New York

Also, CX wasnt exactly keen to be a launch-customer for a new model after what they went through as the launch customer for the 773A.
Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!
 
Horus
Posts: 5131
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RE: Cathay To Order New Aircraft?

Thu Mar 11, 2004 6:45 am

Jaws707

Wouldn't they order some A380s before leasing 3 from ILFC. As with my previous point about the A346, there is no point operating only 3 aircaft in a fleet that is expected to reach 150 by the end of the decade. I would prefer if they get a mix of A380 and B777-300ERs (rather than A346s).

When do the leases on their current A346s end?
EGYPT: A 7,000 Year Old Civilisation
 
Carfield
Posts: 2032
Joined: Fri Dec 19, 2003 5:49 pm

RE: Cathay To Order New Aircraft?

Thu Mar 11, 2004 6:53 am

I think the lease for Airbus A340-600 will expire at 06 and 07. I am not sure what CX plans to do...
Go to www.cathaypacific.com... go to the press room... you can read the news about the 2003 report... and then it will link you to the detailed version of the report... There are detailed information about the fleet of CX... how many they own and leased and financing... interesting stuff... expiry of lease...

It is hard to speculate, but one thing for sure... CX will not be a launch carrier for any of the new Airbus or Boeing models. CX manage is very conservative these days... but I think the new order should be a mixed batch of Airbus and Boeing. For now, CX seems to focus on Airbus A330 for regional and Australia, and then A340 for long haul, and then Boeing 777 for regional (due to its high capacity). I think CX will not likely change this direction. Boeing 777ER may be too big for CX long haul... CX seems to be pleased with Boeing 777 on the intra-Asian high demanding flights.

I don't expect a big surprise announcement...
Possibly more Airbus A330 and Boeing 777 for regional expansion and Mainland China... maybe a few Airbus A340s to support the ultra long haul flights for secondary destinations...

A380s seem to be a far fetched... Definitely no Boeing 7E7...

Sometimes, I think this conservative manner of CX is stopping the airline from growing... maybe a bit too conservative... sometime this airline business requires some creativity and risks, but with the SARS crisis last year, CX will be back to its more conservative self.

Carfield
 
N754PR
Posts: 2909
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RE: Cathay To Order New Aircraft?

Thu Mar 11, 2004 9:38 am

The rumour is the order will be a repeat of last time, the A333 and the B773. I've heard about 5 A330's and 3/4 B773's.
Bush, your a sad, sad man.
 
Jaws707
Posts: 667
Joined: Mon Aug 06, 2001 10:45 am

RE: Cathay To Order New Aircraft?

Thu Mar 11, 2004 10:23 am

Horus:
I was thinking they might want to lease a few of the A380's to try them out to see how well they will fit into the fleet and their future plans. I believe CX's network could support 10-15 A380's in the future. CX also carries a lot of cargo so the A380 could help in that sense as well. BTW a few months ago there was talk of CX picking up some used 744's, is that rumor still floating around, or have they decided against the used 744's. I believe they were to come from Brittish Airways.
 
Airbus_A340
Posts: 1439
Joined: Sat Mar 11, 2000 8:41 pm

RE: Cathay To Order New Aircraft?

Thu Mar 11, 2004 2:09 pm

From what I have heard I doubt that Cathay will be taking on any A380s in the near future.

As for what N54pr has said, I have also heard they will get 5 more A330's and 3 or 4 773's.

Airbus_A340
People. They make an airline. www.cathaypacific.com
 
The Coachman
Posts: 1192
Joined: Sun Apr 29, 2001 9:57 pm

RE: Cathay To Order New Aircraft?

Thu Mar 11, 2004 5:04 pm

Concur with the rumour about 5 x A330-300 and 3/4 x B777-300. Gate agent I talked to said they were in talks and they were the types they were after, numbers to be determined.
M88, 722, 732, 733, 734, 73G, 73H, 742, 743, 744, 752, 762, 763, 772, 773, 77W, 320, 332, 333, 345, 388, DH8, SF3 - want
 
Horus
Posts: 5131
Joined: Sun Feb 22, 2004 1:04 am

RE: Cathay To Order New Aircraft?

Thu Mar 11, 2004 6:29 pm

Jaws707

Nothing new on the used 744s, and yeah they are supposed to be coming from BA. About the A380, I can see your point about leasing 3 first. We'll have to wait and see
EGYPT: A 7,000 Year Old Civilisation
 
buckfifty
Posts: 1278
Joined: Tue Oct 16, 2001 4:05 pm

RE: Cathay To Order New Aircraft?

Thu Mar 11, 2004 7:09 pm

The 744 deal will be finalised within the next month or two, this is from the company newsletter. But the details are still unknown, and everyone is still speculating on the origin.
 
ConcordeBoy
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Joined: Thu Feb 01, 2001 8:04 am

RE: Cathay To Order New Aircraft?

Fri Mar 12, 2004 1:31 am

Assuming the 744 deal is finalized, that bodes well for a sizeable 773 order from BA..... making them only the second non-Asian carrier to do so  Big thumbs up
Faire du ciel le plus bel endroit de la terre c'est impossible sans Concorde!