Cathay Pacific seeks mid-size widebody jets to spur growth

Cathay Pacific Airways Ltd. is seeking proposals from Airbus SE and Boeing Co. for new aircraft to replace some of its older mid-sized widebody jets, rounding off the Hong Kong carrier’s biggest buying spree in a decade.

“We are evaluating options for a versatile, mid-sized widebody aircraft that can undertake a range of missions and grow our passenger and cargo business,” Cathay said in a statement, confirming an earlier Bloomberg report.

Both planemakers have been issued a so-called request for information for the potentially multi-billion dollar plane order, according to people familiar with the matter. The RFI is the first step in the process and no purchase is guaranteed, the people cautioned, who asked not to be identified discussing private deliberations.

The carrier will likely have to choose between Boeing’s 787 Dreamliner and Airbus’s A330neo or the more-advanced A350 jet.

Hong Kong’s biggest airline last year already ordered dozens of new aircraft, all from Airbus, as it readies an expansion of its home base at Hong Kong International Airport, with three runways becoming operational by late 2024.

Chief Executive Officer Ronald Lam has said that the company has a two-year window to catch up after the pandemic put its expansion plans on hold. Lam has previously spoken of the need for replacement widebody jets that fly exclusively around Asia.

Of these, it has 43 Airbus A330s for regional flights, and the carrier has earmarked an unspecified number for refurbishment by 2026, lowering the need to spend so much on new planes.

“We have clear and substantial investment plans to enhance our customer experience offering, including new aircraft, new cabin products, new lounges, and more,” Cathay said. 

In the most recent cycle of Cathay’s aircraft dealings, Airbus has won in every major deal. The regional widebody order will conclude the airline’s largest cycle of investments in new aircraft since 2010 to 2013.

Cathay last month finalized a deal to order 6 A350 Freighters, with 20 purchase rights, and earlier doubled up its single-aisle jet order, with another 32 A320neo family jets in September. The airline hasn’t ordered from Boeing since 2013.

Cathay was the hardest hit airline during the Covid pandemic through nearly three years of border restrictions deterring travel, losing almost HK$34 billion in the process, requiring a Hong Kong government-led bailout to stay afloat.