Airliners.net

On 13th September 2017, CPAS and Airbus S.A.S. entered into the Purchase Agreement, pursuant to which CPAS has agreed to purchase the Airbus Aircraft (being 32 Airbus A321-200neo aircraft) from Airbus S.A.S.

Swire Pacific and Air China, which together own approximately 74.99% of the issued share capital of the Company, have approved the Transaction. Swire Pacific and Air China do not have any interest in the Transaction other than as shareholders of the Company.

The Transaction constitutes a major transaction of the Company under the Listing Rules. A circular containing the information required under the Listing Rules will be despatched to shareholders on or before 6th October 2017.

This announcement also deals with a transaction which is related to the Transaction but which is not a notifiable transaction of the Company under Chapter 14 of the Listing Rules. An existing order for six Airbus A350-1000 aircraft is to be converted into an order for six smaller Airbus A350-900 aircraft (to be delivered in 2019 and 2020) and the delivery of five Airbus A350-1000 aircraft is to be deferred from 2020 to 2021.

scotron11 wrote:

Wonder what this means for their 777X orders?

Eyad89 wrote:

So six A35K are to be converted into six A359, that's a revenue loss for Airbus.

frigatebird wrote:

scotron11 wrote:

Wonder what this means for their 777X orders?

Nothing, else the article would have mentioned it.

frigatebird wrote:

Eyad89 wrote:

So six A35K are to be converted into six A359, that's a revenue loss for Airbus.

Perhaps. But always better than a cancellation.
It's typical for the current market though, there is overcapacity. Widebody aircraft around the 300 seat capacity are in popular demand (A359/B789), larger ones not so much. Orders for A35K, 777X and 787-10 are scarce.

KarelXWB wrote:

frigatebird wrote:

scotron11 wrote:

Wonder what this means for their 777X orders?

Nothing, else the article would have mentioned it.

The 777X hasn't entered production yet so there are no upcoming production slots to rejig, though growth will have to pick up in the coming years otherwise deferrals are inevitable.

airbazar wrote:

frigatebird wrote:

Eyad89 wrote:

So six A35K are to be converted into six A359, that's a revenue loss for Airbus.

Perhaps. But always better than a cancellation.
It's typical for the current market though, there is overcapacity. Widebody aircraft around the 300 seat capacity are in popular demand (A359/B789), larger ones not so much. Orders for A35K, 777X and 787-10 are scarce.

It's worth remembering that 16 of the A350-1000 were conversions from the A359. So this is in a way a return to the original order
https://www.cathaypacific.com/cx/en_VN/ ... craft.html

KarelXWB wrote:

CX is putting the brakes on international growth.

Cathay Pacific Airways Ltd. switched a contract for six A350-1000s to the smaller -900 variant and deferred delivery of five more by a year.

The model switch, announced by Asia’s biggest carrier on Wednesday, follows a decision last week at United Airlines to swap on order for 35 A350-1000s to 45 -900s,...

The Cathay decision narrows the order book for the 366-seat A350-1000 to 171 aircraft, based on the planemaker’s latest data, while lifting the backlog for the 325-berth -900 to 679 planes. The larger jetliner is falling out of favor as carriers around the world rein in capacity expansion to ease pressure on fares, while United Chief Financial Officer Andrew Levy said the -1000 is also too close in size to the largest Boeing Co. 777 model.

https://www.bloomberg.com/news/articles/2017-09-13/biggest-airbus-a350-stumbles-as-cathay-latest-to-prefer-sibling

raylee67 wrote:

So actually more -900 order may mean CX is looking at more secondary destination opportunities.

kaitak wrote:

raylee67 wrote:

So actually more -900 order may mean CX is looking at more secondary destination opportunities.

This is what I was thinking; the 359 has longer legs than the 359; there's no reduction in the numbers being ordered, just a greater emphasis on the longer range model.

As to the A350-1000, does that mean we won't see these in CX colours until 2021, then? The oldest of the (non ER) 773s will be 24 yrs old by then and pretty high in cycles. Presumably the first type that the 35K will replace.

While on the subject of CX 777s, have they given indication of when the -200s might be retired? Whatever about the other 4, I hope LN 1 is not scrapped!

kaitak wrote:

raylee67 wrote:

So actually more -900 order may mean CX is looking at more secondary destination opportunities.

This is what I was thinking; the 359 has longer legs than the 359; there's no reduction in the numbers being ordered, just a greater emphasis on the longer range model.

As to the A350-1000, does that mean we won't see these in CX colours until 2021, then? The oldest of the (non ER) 773s will be 24 yrs old by then and pretty high in cycles. Presumably the first type that the 35K will replace.

While on the subject of CX 777s, have they given indication of when the -200s might be retired? Whatever about the other 4, I hope LN 1 is not scrapped!

dc10lover wrote:

Hopefully they chose the GE Leap engine.

kitplane01 wrote:

Cathay Pacific Airways Ltd. switched a contract for six A350-1000s to the smaller -900 variant and deferred delivery of five more by a year.

The model switch, announced by Asia’s biggest carrier on Wednesday, follows a decision last week at United Airlines to swap on order for 35 A350-1000s to 45 -900s,...

The Cathay decision narrows the order book for the 366-seat A350-1000 to 171 aircraft, based on the planemaker’s latest data, while lifting the backlog for the 325-berth -900 to 679 planes. The larger jetliner is falling out of favor as carriers around the world rein in capacity expansion to ease pressure on fares, while United Chief Financial Officer Andrew Levy said the -1000 is also too close in size to the largest Boeing Co. 777 model.

https://www.bloomberg.com/news/articles/2017-09-13/biggest-airbus-a350-stumbles-as-cathay-latest-to-prefer-sibling

The Cathay decision narrows the order book for the 366-seat A350-1000 to 171 aircraft, based on the planemaker’s latest data, while lifting the backlog for the 325-berth -900 to 679 planes. The larger jetliner is falling out of favor as carriers around the world rein in capacity expansion to ease pressure on fares, while United Chief Financial Officer Andrew Levy said the -1000 is also too close in size to the largest Boeing Co. 777 model.

The order revisions suggest that the sweet-spot for twin-engine wide-body orders remains in the 250-350 seat range at a time of excess capacity and with the low oil price making it possible for carriers to put off fleet renewal and upgrades, aerospace consultant Richard Aboulafia said.

astuteman wrote:

The Cathay decision narrows the order book for the 366-seat A350-1000 to 171 aircraft, based on the planemaker’s latest data, while lifting the backlog for the 325-berth -900 to 679 planes. The larger jetliner is falling out of favor as carriers around the world rein in capacity expansion to ease pressure on fares, while United Chief Financial Officer Andrew Levy said the -1000 is also too close in size to the largest Boeing Co. 777 model.

The order revisions suggest that the sweet-spot for twin-engine wide-body orders remains in the 250-350 seat range at a time of excess capacity and with the low oil price making it possible for carriers to put off fleet renewal and upgrades, aerospace consultant Richard Aboulafia said.

Just to bold what seems to be the real underlying issue here. Might be relevant for the future of the 777X thread.

mercure1 wrote:

KarelXWB wrote:

CX is putting the brakes on international growth.

Entire CX Group operations is international, and they are growing both in frames and seat capacity.

Revelation wrote:

astuteman wrote:

The Cathay decision narrows the order book for the 366-seat A350-1000 to 171 aircraft, based on the planemaker’s latest data, while lifting the backlog for the 325-berth -900 to 679 planes. The larger jetliner is falling out of favor as carriers around the world rein in capacity expansion to ease pressure on fares, while United Chief Financial Officer Andrew Levy said the -1000 is also too close in size to the largest Boeing Co. 777 model.

The order revisions suggest that the sweet-spot for twin-engine wide-body orders remains in the 250-350 seat range at a time of excess capacity and with the low oil price making it possible for carriers to put off fleet renewal and upgrades, aerospace consultant Richard Aboulafia said.

Just to bold what seems to be the real underlying issue here. Might be relevant for the future of the 777X thread.

Interesting to see Richard Aboulafia's opinions on airplanes that are too large now holding sway here on a.net.

And indeed the 77X seems to be getting launched into stormy seas.

Can't be good for the Whale's production gap either.

Regards as always,
Rev.

astuteman wrote:

I don't think his opinions hold sway as such. Reality might, though.

I'm not sure the 77X was launched into stormy seas - there are many on here that will readily point to over 300 orders 2 years before EIS and do a little victory jig.
But it does appear that as its maiden voyage approaches, the seas have turned a little rougher.
Two aspects here at play IMO.
1. Much greater competition from a much greater range of very capable smaller aircraft accelerating fragmentation (which most of a-net and most of the industry have long considered a long-term phenomenon) - a headwind for the 77X
2. A current over-capacity in the widebody market - indeed alluded to by RA. This one is more in the nature of a squall - it will blow over at some point, and of course can be used as a reason to explain slow 77X sales at the moment.

And no. Point 1 does not bode well for the A380, and never has

Rgds

jfk777 wrote:

The 777 LN1 is the prototype which will be returned to Boeing after its life at Cathay. This was in the contract when the plane was sold to Cathay.