Cathay Pacific to Acquire 11 Airbus A330-900 Aircraft for $5.11B
Cathay Pacific Airways has committed to a US$5.11 billion (approximately HK$39.889 billion) purchase of 11 Airbus A330-900 aircraft, a move intended to modernize its fleet and support future growth. The agreement, announced November 11th, involves exercising purchase rights obtained under a 2024 agreement with Airbus S.A.S., and represents a ‘discloseable transaction’ under Hong Kong Stock Exchange listing rules.
The new aircraft are slated to replace the airline’s existing mid-size widebody fleet, primarily serving destinations within Asia, with the potential for long-haul routes later. Cathay Pacific anticipates deliveries will occur between 2031 and 2035, and plans to finance the transaction through a combination of commercial bank loans, finance leases, sale and leaseback arrangements, and internally generated cash. While the stated aircraft basic price is US$5.11 billion, the company secured unspecified price concessions from Airbus, a common practice in the industry, and the final consideration will be lower.
The transaction was negotiated at arm’s length, with the price concessions comparable to those obtained in previous aircraft purchases, according to the filing. Cathay Pacific applied for and received a waiver from the Hong Kong Stock Exchange to avoid disclosing the exact final consideration, citing the potential loss of those price concessions. This strategy mirrors past practice, where the company has disclosed the aircraft basic price rather than the actual amount paid.
The acquisition continues a pattern of fleet modernization and expansion, as evidenced by previous purchases and reactivations outlined in earlier filings. The Directors of Cathay Pacific believe the terms are fair and in the best interest of shareholders, contributing to sustainability commitments through improved fuel efficiency and enhancing passenger experience. The purchase is not subject to shareholder approval, as the relevant percentage ratios under Listing Rules fall below the threshold requiring it.