Hong Kong flag carrier Cathay Pacific seals cut-price deal on 32 new Airbus jets worth HK$36 billion

Aircraft, with book price of HK$36 billion, will be delivered by the end of 2029 and be used mostly on mainland China and Asia routes

Acquisition doubles Cathay group’s total orders for Airbus A320neo family of jets to 64 and 13 have already been delivered

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An Airbus A320neo, similar to the ones ordered by Cathay Pacific, takes flight. Photo: Handout

Published: 9:00pm, 30 Sep 2023Updated: 12:12am, 1 Oct 2023

Hong Kong’s Cathay Pacific Airways has finalised a cut-price deal for 32 aircraft worth HK$36 billion (US$4.66 billion) from Europe’s Airbus, a move an analyst has said will guarantee the availability of new planes as the city’s flag carrier pushes ahead with expansion plans.

The airline said in a filing on Friday it had bought the Airbus aircraft for the “basic price” of HK$36.35 billion, but had negotiated “significant price concessions”.

“Such price concessions were determined after arm’s length negotiations between the parties and, as a result, the actual consideration for the Airbus Aircraft is lower than the aircraft basic price mentioned,” Cathay Pacific explained.

The airline said the basic cost was made up of prices for the airframe, optional features and engine.

Christian Scherer, Airbus’ chief commercial officer and head of international, says company is “proud” to be a Cathay supplier. Photo: Reuters

Hong Kong flag carrier Cathay Pacific seals cut-price deal on 32 new Airbus jets worth HK$36 billion

Aircraft, with book price of HK$36 billion, will be delivered by the end of 2029 and be used mostly on mainland China and Asia routes Acquisition doubles Cathay group’s total orders for Airbus A320neo family of jets to 64 and 13 have already been delivered

Aircraft, with book price of HK$36 billion, will be delivered by the end of 2029 and be used mostly on mainland China and Asia routes

Acquisition doubles Cathay group’s total orders for Airbus A320neo family of jets to 64 and 13 have already been delivered