Cathay Pacific buys 14 Boeing 777-9 aircraft for $63.2 billion

Cathay Pacific Airways (0293) said it would purchase 14 additional Boeing 777-9 aircraft for US$8.1 billion (HK$63.2 billion), the first deal with the planemaker in 12 years.

Boeing granted price concessions in the transaction, and the aircraft are expected to be delivered by 2034, according to an exchange filing.

Cathay Pacific Airways said it also secured the right to acquire up to 7 additional Boeing 777-9 aircraft from the manufacturer. 

The offer will be paid in cash in five instalments, with the first four instalments for each aircraft to be paid prior to delivery of such aircraft and the balance, being a substantial portion of the consideration, to be paid upon delivery of such aircraft. 

The Transaction is intended to be financed wholly or in part by commercial bank loans, finance leases, sale and leaseback arrangements, and cash generated from its business operations.

The city’s flagship airline declared that the new planes will principally serve the company’s long-haul destinations while also serving selected regional destinations. 

The aircraft will enable future growth and progressively replace a portion of the Company’s existing fleet of long-haul widebody aircraft, it added.

HELEN ZHONG