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zeke
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CX Seeks US$300m For New Aircraft

Sun Feb 11, 2007 6:16 pm

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
 
ebbuk
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RE: CX Seeks US$300m For New Aircraft

Sun Feb 11, 2007 8:50 pm

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.
 
kaitak
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RE: CX Seeks US$300m For New Aircraft

Sun Feb 11, 2007 8:59 pm

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.
 
BrianDromey
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RE: CX Seeks US$300m For New Aircraft

Sun Feb 11, 2007 9:46 pm

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 
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Lumberton
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RE: CX Seeks US$300m For New Aircraft

Sun Feb 11, 2007 9:53 pm

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".
 
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zeke
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RE: CX Seeks US$300m For New Aircraft

Sun Feb 11, 2007 10:46 pm

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
 
cloudyapple
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RE: CX Seeks US$300m For New Aircraft

Sun Feb 11, 2007 11:00 pm

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
 
ebj1248650
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RE: CX Seeks US$300m For New Aircraft

Mon Feb 12, 2007 10:32 am

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!
 
elvis777
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RE: CX Seeks US$300m For New Aircraft

Mon Feb 12, 2007 1:50 pm

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
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OldAeroGuy
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RE: CX Seeks US$300m For New Aircraft

Mon Feb 12, 2007 2:04 pm

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
 
Electech6299
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RE: CX Seeks US$300m For New Aircraft

Mon Feb 12, 2007 3:15 pm

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 
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kc135topboom
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RE: CX Seeks US$300m For New Aircraft

Mon Feb 12, 2007 4:51 pm

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.
 
sstsomeday
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RE: CX Seeks US$300m For New Aircraft

Mon Feb 12, 2007 5:12 pm

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?
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