Posted on 12/02/2005 11:59:17 AM PST by steel_resolve
In another setback for Airbus and its four-engine A340, Cathay Pacific Airways of Hong Kong announced plans Thursday to buy a dozen of The Boeing Co.'s twin-engine 777s and take purchase rights on 20 more.
Cathay Pacific, which has 95 Boeing and Airbus planes in its fleet, said the 777 eventually will become its primary long-haul aircraft.
This is the second major airline order campaign won by Boeing and its 777 in two weeks. Emirates ordered 42 777s at the Dubai Air Show.
Next up is Australia's flagship airline, Qantas, which is expected to announce its choice of Boeing or Airbus long-haul jets Wednesday. Qantas has said it could order as many as 100 planes.
The run of 777 orders this year means more work for Boeing's Everett plant. Boeing is raising production rates on the 777 line to accommodate the growing demand for this plane.
Cathay Pacific selected the 777-300ER. At the listed price of that model, the 12-plane deal would be worth about $2.8 billion. Boeing and Cathay Pacific have yet to complete a purchase agreement.
In addition to its announced commitment for a dozen planes, Cathay Pacific said it will take four 777-300ERs from International Lease Finance Corp.
The 16 Boeing jets will be delivered between September 2007 and July 2010, the airline said.
This was a hard-fought and closely watched battle between Boeing and Airbus that pitted the 777-300ER against the Airbus rival A340-600, a plane that Cathay Pacific already operates.
With aviation fuel prices high, Cathay Pacific joins a growing number of A340 operators that have decided that the two-engine 777 is the better choice, raising questions about the future of the four-engine A340.
"The 777's success is snowballing, and the A340 is spiraling downward," Teal Group analyst Richard Aboulafia said.
Given its victories with Emirates and Cathay Pacific, if Boeing's 777 carries the day with Qantas, it would raise "serious doubts about the Airbus widebody future," Aboulafia said.
Airbus is developing a new twin-engine long-haul plane, the A350, to compete against Boeing's twin-engine 787.
So far this year, Boeing has 109 firm orders for the 777, which entered service with United Airlines in 1995.
More orders are pending.
Air India announced earlier this year that it will buy 15 777s. But that deal still needs the approval of India's Cabinet before it can become final and be counted as a firm order by Boeing.
Also in the works is a commitment from Qatar Airways, based in Doha, for what it has said will be at least 20 777s.
Boeing is closing in on the record 116 firm orders for the 777 that it received in 2000. Meanwhile, Airbus has only 14 firm A340 orders this year, 11 of them for the A340-600.
The 777-300ER entered service in 2004. It is one of two new long-range 777 models. The smaller 777-200LR, which recently set a non-stop distance record, enters service early next year.
Cathay Pacific's 777s will replace aging 747s on routes to North America and Europe. The airline's fleet currently includes 22 747-400s, 16 777s, three A340-600s, 15 A340-300s and 26 A330s.
This will be the largest new aircraft purchase ever by Cathay Pacific.
In addition to the four 777s, it will take from International Lease Finance Corp., Cathay Pacific said it would lease three A330-300s from the leasing giant.
The A330 is a two-engine plane.
Is there a good site that is keeping track of the orders for each, by year, airline, etc.?
Just like the rest of the world, they want American!
Today, Cathay Pacific Airlines...Tomorrow, the WORLD!!!
*lightning crackles from fingertips as Yours-truly laughs like an evil maniac*
Reuters just announced that AlQeda has placed firm orders for 8 of the Airbus A380 jumbo jets.
Paaaahahahahahah! Yes! Let's see....I can order Boeings which are used around the world and fit at any airport...or I can buy Airbus from a heavily subsidized French company that will make a profit whether or not I like my purchase. Hmmmmmmm....
We're part of the "Boeing Family." It's good to know the product is selling. We'll be employed for another few years!!!
ping
Wouldn't ya know...right whne the F22 Raptor is just entering service....hmmmmmmm...big fish of the sky.
Great news.
Dunno, I get this email called smartbrief - all about the airline industry. That's where I get most of these stories from.
With the 787 Dreamliner due soon, you may see the nail in the coffin of Airbus for a decade.
bump
...Reuters just announced that AlQeda has placed firm orders for 8 of the Airbus A380 jumbo jets....
Confirmation can be found in Al Jeezera along with the Al Qeada spokesman comment, "We like to purchase from ourselves. All Frog Bases belong to us"
With the 787 Dreamliner due soon, you may see the nail in the coffin of Airbus for a decade.
I'll not cry the blues if that happens, let me tell you. The filthy French can go to the warm place down below.
Aerospace Ping
I have a feeling you're going to being seeing this phrase a lot!
You are confusing the A380 with the A340.
The A380 is not a direct compeditor of the 777
I don't know.
But lets put it this way:
For the past 4 years, Airbust sold more planes due to the low prices they were offering. A lot of this had to do with how bad the airline industry was since 2000. 9/11 and the american recession was a double whammy for international and domestic air travel, for not just american carriers, but other countries as well.
Airlines were cancelling existing plane orders or putting them on hold till things got better.
Airbust via massive subsides from the EU and countries governments where the planes are built (UK, France, Spain) was getting more plane orders. They could sell the planes at a loss and still break even or make profits because of all the billions in subsides.
But now the airlines are buying planes again around their strategies for the next decades. The 737, new 747, the 777 models, and the new 787 gives Boeing a major advantage against Airbust. They made the right call about the future of what airlines were going to want.
So far this year, I believe Boeing is near 1000 plane orders, and Airbust is around 600. But Boeing has also captured many more "firm" orders than Airbust which are real orders meaning slots for them to be built at the factories are filled and given a date of delivery.
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