NICHOLAS IONIDES / SINGAPORE
Hong Kong-based carriers slash weekly services and push back fleet expansion plans
Embattled Cathay Pacific Airways is seeking to defer deliveries of all outstanding aircraft on firm order as it suffers a continuing drop in business because of the SARS outbreak. Fellow Hong Kong carrier Dragonair has already won agreement from Airbus to delay deliveries of four A320-family aircraft.
Both airlines are suffering badly because of the SARS outbreak in their Hong Kong base. Cathay has slashed weekly services by 45% and Dragonair by more than half, leaving many aircraft on the ground.
Both had been planning fleet expansions, and now want to push back those plans.
Cathay says it is in talks with Airbus and Boeing on deferrals, "and we hope they can assist in this regard". It wants to defer all outstanding deliveries, comprising seven firm orders, including one on lease order with International Lease Finance (ILFC).Cathay is due to receive an ILFC-owned Airbus A340-600 next month, followed by three purchased Airbus A330-300s and two purchased Boeing 777-300s in the second half of this year. The A340, the last of three it is acquiring through ILFC, is completed and awaiting delivery in Toulouse. The last aircraft Cathay has on order, another 777-300, is due for delivery in February. The airline cannot say when it wants to take delivery of the aircraft.
Dragonair says Airbus has already agreed to defer deliveries of four firm-ordered aircraft - two A321s due in June and August that have been delayed to the end of the year, and two A320s due in 2004 that will now arrive in 2005.
Some other airlines in the Asia-Pacific region are also seeking to defer aircraft on firm order. China Eastern Airlines has said it wants to defer delivery of all 12 Airbus aircraft due for delivery this year, and Qantas has said it is considering deferring the introduction of additional Airbus A330s.
Source: Flight International
