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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 B777

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

1 Comment

1 Comment

  1. Mao

    November 9, 2019 at 12:44 pm

    cathay not welcome in China

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Airline Operation

Lufthansa Group To Implement Permanent Capacity Reduction Of 150 Aircraft By 2025

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Lufthansa A380

The Executive Board of Deutsche Lufthansa AG approved the third package within the Group-wide “ReNew” restructuring program earlier today.Due to significantly lower than expected air traffic recovery, Lufthansa’s Executive Board has today adopted several measures to cut costs and preserve cashflow, including reductions in fleet size and personnel.


The outlook for international air traffic has significantly worsened in recent weeks. With the summer travel season coming to an end, passenger and booking figures are declining again, after slight signs of recovery were still evident in July and August. In view of these developments, Lufthansa has finalised decisions on the third package within their restructuring program earlier today. 


Lufthansa Fleet Parked
Lufthansa Fleet Parked

In detail, the Executive Board adopted the following resolutions:

  • The capacity outlook for the passenger airlines will be significantly revised; the previous assumption that an average production level of 50 percent of the previous year’s value would be reached in the fourth quarter of the year no longer seems realistic. If the current trend continues, the available seat kilometres will probably only be in a range between 20 and 30 percent, compared to the previous year.
  • The medium term fleet planning will be adjusted and currently foresees  a permanent, Group-wide capacity reduction of 150 aircraft by the middle of this decade (starting point is the Group fleet including wet-leased aircraft).
  • In addition to the fleet changes already communicated, the following decisions have been made: After six Airbus A380s were finally taken out of service in the spring, the remaining eight A380s and ten A340-600s, which were previously intended for flight service, will be transferred to long-term storage and removed from planning. These aircraft will only be reactivated in the event of an unexpectedly rapid market recovery. In addition, the remaining seven Airbus A340-600s will be permanently decommissioned.
  • The fleet decisions mentioned above will result in a further impairment of up to EUR 1.1 billion. The amount is expected to be accounted for in the third quarter of the current year.
  • The previously announced personnel surplus amounting to 22,000 full-time positions will increase as a result of the decisions taken in regards to the third package within the restructuring program. The change in permanent staffing levels within flight operations will be further adjusted in regards to market development. The compensation and reduction of personnel surplus will be discussed with the responsible employee representatives.
  • Irrespective of the negotiations on reconciliations of interests and social plans for redundancies within the Lufthansa Group, the Executive Board’s objective remains agreeing on crisis packages with the collective bargaining partners that limit the number of necessary redundancies.
  • Despite the worsened outlook, the revised financial planning intends to further reduce cash outflows through strict cost management. The outflow of liquidity is to be reduced from currently around EUR 500 million per month to an average of EUR 400 million per month in winter 2020/21. The previously communicated Group target of returning to positive operating cash flows during 2021 is being reinforced.
  • A streamlined management structure with a 20 percent reduction of management positions is to be implemented in the first quarter of 2021. To simplify and clearly define responsibilities, the functional process organization (matrix) will be focused on core functions of Lufthansa Group Airlines. For all other areas, a new management model with clearly assigned responsibilities (decentralized or centralized, depending on the process) will be introduced.
  • The administrative office space will be reviewed worldwide and reduced by 30 percent in Germany.

Lufthansa Group Press Release


Lufthansa A380
Lufthansa A380

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