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Fleet Management

Cathay Pacific Group To Optimise Fleet Allocation With 16 A321neo To HK Express

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Cathay Pacific Group is set to receive 65 new aircrafts by 2024 despite recent developments in Hong Kong; in an effort for fleet modernisation, the group’s 3 airlines – Cathay Pacific, Cathay Dragon and HK Express (acquired since March 2019 for HK$4.93 billion or US$628 million) will be each taking deliveries of a dozen new aircrafts that better suits their respective market positioning.

In order to continue strengthen Hong Kong’s position as Asia’s leading international aviation hub; the group’s existing aircraft order is comprised of 21 Boeing 777-9 aircrafts, 12 A350s and 32 A321neo aircrafts between 2020 and 2024, the group has decided upon the following fleet allocation after a comprehensive review.


B777-9XA350A321neo
Cathay Pacific2112n/a
Cathay Dragonn/an/a16 (2020-2022)
HK Expressn/an/a16 (2022- )

Cathay Pacific B777
Cathay Pacific B777

“We have four airlines in the group, each of them has its clear proposition. Cathay Pacific will continue to operate as an international full-service airline providing premium services to customers while Cathay Dragon is our regional full-service carrier. Meanwhile, HK Express will remain as a standalone, low-cost airline focusing on serving leisure travel destinations. AHK Air Hong Kong will continue to be the Group’s all-cargo carrier specialising in express cargo services.

“We will continue to invest in each of our airlines, their products and services. New aircraft are always the best platform to showcase our customer experience offerings which we are continuously enhancing in the spirit of our progressive and thoughtful ‘Move Beyond’ brand values.  Our goal is always to move people forward in life through our ability to connect them to meaningful people, places and experiences through our Hong Kong hub.”

Cathay Pacific Group Chief Executive Officer Augustus Tang

The Chinese market currently makes up around 20% of Cathay Pacific’s daily flights, however, the airline is facing negative exposure in China following criticism from the Civil Aviation Administration of China, resulting the airlines earning of HK$1.34 billion in the first half of year 2019.

HK express currently operates 13 routes to Japan, marks up half of its total destinations, recent meetings between executives at HK Express and Japanese official and business in both Hong Kong & Japan signals the airline group will double its effort for Japanese expansion to offset its negative exposure from China.


Aircraft TypeInventoryOn OrderFirm
Cathay Pacific Boeing 777-200
3

Boeing 777-300 15

Boeing 777-300ER 52 Boeing 777-9X 21

Airbus A330-300 33


Airbus A350-900 23 Airbus A350-900 5

Airbus A350-1000 12 Airbus A350-1000
8
Cathay Dragon Airbus A320
15

Airbus A321 8 Airbus A321neo
16

Airbus A330 25

HK Express Airbus A320 8


Airbus A321 11 Airbus A321neo 16

Airbus A320neo 5

Cathay Pacific Boeing 747-400ERF 6


Boeing 747-400BCF 1


Boeing 747-8F 14

Air Hongkong Airbus A300F 10

Albert K. Field Albert is my name, and travel the world is my game. I began my passion for travel at a very young age, I started this website as a strong means to further explore the world of frequent flyers programs (FFP). The relationship between customers and service providers in the aviation and hospitality industry always seems to be in opposition, however, since the introduction of United Airlines’ Frequent Flyers Programm since 1972*. This has significantly eased the middle spectrum between 2 parties. While the aim of airlines is still to generate more revenue; but for us,as consumers, are also given the opportunity to participate in the bargaining and exploiting from service providers. Living in a world of globalization where big data becomes vital for simulating successful economical activities, most of us will have to travel to other locations whether willingly or unwillingly, while you hearing all this fascinating stories about others, In fact, you too, can blend into the trend. It may not sound like how media illustrates, but indeed there are possibilities for us to have more spontaneous travel without getting held back by financial situation. My website consists of reviews of airline premium cabin products,airport lounges and stay reports of 5-star hotels and their executive lounges across the globe. In addition to all of that, I care the most about their frequent flyers program and loyalty program, which also includes banking partners. Plus, I spontaneously put up reviews and news update regarding premium water brands and restaurants. The purpose of this website is to share all of this information with my audience as well as inviting you to be part of my journey.

1 Comment

1 Comment

  1. Mao

    November 9, 2019 at 12:44 pm

    cathay not welcome in China

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Fleet Management

Brussels Airlines To Reduce Fleet Size By 30% For Future Survival

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Brussels Airlines Airbus A320
Brussels Airlines, as part of the Lufthansa Group, in a press release today has decided to take substantive and essential measures to ensure the company’s survival. Impacted heavily by the continuing development of COVID-19, the airline has been met with ongoing extremely low demand and worsened financials, forcing the carrier to structurally reduce its costs to a competitive level in order to grant a future for Brussels Airlines. With the airline’s turnaround plan, Brussels Airlines will be cutting marginally profitable and unprofitable routes in an effort to tack its cost structure. The plan would result in a fleet reduction of 30% and a 25% smaller workforce. The airline is confident in its ability to safeguard 75% of its employment and grow back to profitability when expected air travel demand bounced back to normal by 2023.

Brussels Airlines Airbus A319

The coronavirus crisis is exerting unprecedented pressure on airlines worldwide, and its total revenue impact is expected to exceed 240 billion euros. The number of bookings received fell by more than 60%, and the number of cancellations reached a record high. As a result, many airlines in Europe and elsewhere have had to lay off employees. Unfortunately, Brussels Airlines was not spared from this crisis. Since the temporary suspension of all flights on March 21st, the company lost 1 million euros a day due to loss of revenue and inevitable costs such as aircraft leasing and maintenance.

On February 28, the company first announced the impact on air travel demand. The situation deteriorated week by week and the number of days cancelled exceeded the number of bookings received. Today, demand is still very low. According to analysts and experts, the demand for air travel in 2021 is expected to be 25% lower than before the crisis, and the aviation industry can only expect to return to 2019 levels as early as 2023.


“We started the year 2020 with positive results in terms of number of passengers and revenues; and for this summer, we planned a strong leisure offer as we could compensate part of the business we lost due to the bankruptcy of Thomas Cook Belgium. But the Coronavirus pandemic is hitting Brussels Airlines extremely hard. We had no other choice than to temporarily suspend our flights as of March 21st and introduce technical unemployment for the entire company. This unprecedented crisis has worsened our financial situation obliging us to take substantial and indispensable measures. The restructuring is urgently needed in order to survive the current crisis and to become structurally competitive in the future”

Dieter Vranckx, CEO of Brussels Airlines



Brussels Airlines management plans to focus on achieving structural profitability after pulling the company out of the crisis, this will enable solid growth. The carrier plans to reduce its overall costs while increasing efficiency and productivity. Full positive EBIT margins will enable the airline to ensure its future, invest in the fleet and further develop its hub at Brussels Airport. In addition, Belgian domestic airlines will ensure that they continue to play a pivotal role in the Belgian economy and remain one of the core airlines within the Lufthansa Group.


The main measures of the turnaround plan includes:

  • The review of the network by focusing on the market needs and by optimizing the route profitability.
  • The adaptation of the fleet according to the network optimization: from 54 to 38 aircraft (-30%)
  • The reduction of the personnel costs by reducing the number of jobs by 25%
  • Together with the social partners, the number of forced redundancies will be reduced to a maximum extent.
  • The reduction of overhead, operational costs and the increase of operational efficiency, among others by improving productivity and further standardizing the fleet.
  • The simplification of the employee reward set-up, aiming at remaining an attractive employer while controlling the future cost evolution.

Brussels Airlines is aiming to do everything in its power to limit the number of forced dismissals. The company invites its social partners to jointly evaluate all alternative measures to minimize social impact; measures such as seasonal contracts, pensions, part-time work, unpaid leave, and volunteering to seek future volunteers elsewhere, these are just some listed options.


“The strength of our company are our employees and we do everything we can to protect our staff as much as possible. The way how we deal with the social impact is for us as important as the end goal itself. It’s the management’s responsibility to make sure that our company can survive the crisis. But let’s be clear, the intention is not only to survive but to build a healthy company with a long-term structural profitability and growth perspectives. We strongly believe in the plan and herewith in the future of Brussels Airlines.”

Dieter Vranckx, CEO of Brussels Airlines

Brussels Airlines Belgian Icons Liveries

Although a turnaround plan is indispensable to overcome the crisis, continued dialogues with the Belgian government and Lufthansa are still crucial. The Belgian airline hopes that talks with the Belgian authorities on the financial support needed to resolve the consequences of this unprecedented crisis will yield positive results, while it continues to seek assistance from Lufthansa on the restructuring costs.

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Fleet Management

Austrian Airlines To Retire 28 Aircraft, Keeping Future Fleet With 60

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Austrian Airlines Dash8-Q-400
Austrian Airlines’ flight operations have been at a standstill since March 18, 2020, and they are not expecting demand to recover anytime soon. Austrian Airlines’ post-crisis plan would include capacity cut by phasing out 28 aircraft as an effort to downsize their fleet due to significantly dampened demand in the medium term.
Austrian Airline B777-200 OE-LPF
Austrian Airline B777-200 OE-LPF

Following the continuing evolvement of the Covid-19 pandemic crisis. it is not yet possible for Austrian Airlines to precisely forecast when the complete freedom to travel will be restored. This year Austria’s flag carrier predicts a 25 to 50% drop in demand. A maximum of 75% of the pre-coronavirus level is expected by the end of 2021.

Austrian Airlines Executive Board member Andreas Otto comments: “The entire airline industry is pessimistic. We have to assume that we will reach the ‘pre-corona level’ again in 2023 at the earliest.” 


Austrian Airlines is now preparing to realign its fleet to reflect the decrease in demand. The Executive Board came out with a statement yesterday of its “Plan for a New Start” suggesting a significant reduction to their fleet capacity.

Austrian Airlines B767 OE-LAW
Austrian Airlines B767 China OE-LAW

Austrian Airlines currently operates a fleet of 83 aircraft. They will continue to retire their originally planned 18 De Havilland Canada Dash-Q400 Turboprops following the decision made in 2019. In addition, all of their 7 A319s and 3 of the oldest B767s are to be retired by 2022. In total, they would be phasing out 28 aircraft out of their fleet while phasing in a number of old A320s to replace some of the capacity.

Austrian Airlines’ post-Covid-19 fleet plan envisages only around 60 aircraft in 2022, with only 9 long-haul aircraft. This approach is to take place in stages which in the ned corresponds to a capacity reduction of around 20%.


REGDELIVEREDSTATUSNAMEAGE
OE-LAEJan 2005Wiener Sängerknaben19.5 Years
OE-LATMar 2007StoredThailand28.6 Years
OE-LAWFeb 2005StoredChina27.7 Years
OE-LAXApr 2007StoredSalzburger Festspiele27.4 Years
OE-LAYJul 2005StoredJapan21.4 Years
OE-LAZApr 2005StoredIndia20.8 Years

Austrian Airlines B767-300 Fleet

The Boeing 767-300s aircraft to be retired are Thailand(OE-LAT), China(OE-LAW) and Salzburger Festspiele (OE-LAX), which are the oldest aircraft of the 6 of its type in their fleet with an average age of over 28 years. The other three B767s are between 19.5 and 21.4 years old. Austrian Airlines’ entire fleet age currently is at 15.4 years which is very old, They stated that their average fleet age will decrease to 14.6 after the plan is finished.


Austrian B767 OE_LAX
Austrian B767 Salzburger Festspiele OE-LAX

Despite the reduction of the fleet, as many jobs as possible are to be maintained. Appropriate talks are already underway with the works councils. We got into this crisis through no fault of our own. Now it is our responsibility to make Austrian Airlines fit for the future after Corona. We want to retain our long-haul hub, even if we have no other choice for the time being but to adapt to the somewhat smaller market. Being fit for the future also means that we must be in a position to finance our aircraft, charges, wages and investments, and of course also to repay any charges and loans from Corona grounding,” emphasises Austrian Airlines CEO Alexis von Hoensbroech. 

“We now have a plan, and hope for the support of everyone involved”, the Executive Board agrees unanimously. 

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