Cathay Pacific and BOC Aviation have agreed a sale-and-leaseback which will cover six Boeing 777-300ER jets.
The Hong Kong-based carrier warned on 11 March that it expects to incur a “substantial loss” over the first half of this year and that its liquidity position would be “adversely impacted” by plummeting demand due to the coronavirus pandemic.
The airline reduced capacity 30% for February and 65% for March and April. February load factors fell to about 50%, with year-on-year yield also seeing significant decreases.
“We are pleased to be supporting Cathay once again, building on a long-term relationship that dates back to 2009,” states BOC Aviation chief executive Robert Martin. “This transaction highlights the way we can bring financing solutions to our customers, on the strength of our balance sheet, our ‘A-’ credit ratings and our available liquidity.”
As it struggles through a period of significant revenue deterioration, Cathay is in talks with Airbus and Boeing to defer aircraft deliveries. The carrier has one Boeing 777 and four Airbus A350-900s and four A350-1000s scheduled for delivery during the next 12 months, Cirium fleets data shows.
