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HK Express receives A321neos in group fleet re-assessment
November 15th 2019
Cathay Pacific LCC to receive 16 neos from 2022. Read More »
Cathay Pacific Airways will split its order for 32 A321neo aircraft. The original 2017 order called for all aircraft to go to subsidiary, Cathay Dragon, but now the first 16 will be delivered to the regional carrier from 2020 to 2022. The second tranche of 16 airplanes will be allocated to its LCC, HK Express, which will receive its neos from 2022.
Cathay Dragon operates 23 A320 family aircraft, so the order for 32 more planes was an investment in growth. There also was some planned down-gauging from A330s to the neo. The 23 A320 family aircraft are 15 A320s and eight A321s. So even replacing aircraft on a one-for-one basis will generate capacity, even compared with the original A321, which lacks the neo’s better cabin design.
Declining aircraft values might result in the group extending its use of existing aircraft, either because of attractive lease rates or because disposing of owned aircraft would generate less cash.
Meanwhile, HK Express will have the benefit of newer aircraft in its fleet, with larger-gauge A321neos replacing A320s and also will have the option of opening destinations with longer range A321neo.
Before its sale to Cathay Pacific, HK Express planned a fleet of A321neos that would reach further into Southeast Asia and Japan. The A321neo will improve winter payload to Tokyo while opening up Hokkaido, an opportunity that will be boosted by the privatisation of airports in Hokkaido.
Cathay Pacific is not adjusting its outstanding orders for the A350 and 777-9. It will take all wide-body aircraft as planned.
