Airbus A350 gets Asian boost as Cathay endorses jet
Airbus SAS’s quest to attack Boeing Co. in the market for large wide-body aircraft got a boost from Cathay Pacific Airways Ltd.’s pledge for 30 A350s, strengthening Airbus’ Asian foothold as delivery of the jet draws closer.
Cathay, the largest airline in Hong Kong and a rival to Singapore Airlines Ltd., signed a letter of intent to buy 30 of the long-range aircraft. That matches Asiana Airlines’ order to be the region’s largest deal for the jet. Singapore has ordered 20 A350s, which has a list price of about $225 million.
Airbus has won 535 firm orders from 33 customers for the plane, making it the Toulouse, France-based planemaker’s fastest-selling model to date. The company is working to maintain its schedule for first deliveries in July 2013, after the A380 was marred by years of delays and slower-than-planned production. Boeing is also behind on its 787 Dreamliner jet.
“Getting a commitment from Cathay is really positive in terms of showing confidence in the plane,” said Oddo Securities analyst Yan Derocles in Paris, who recommends investors buy shares of Airbus parent European Aeronautic, Defence & Space Co.
Derocles said the support from Cathay aids Airbus because the region had so far only accounted for 18 percent of the model’s backlog. Airbus’s global market forecast projects airlines in Asia Pacific will purchase 31 percent of all new commercial aircraft seating more than 100 passengers in the next two decades, more than either US or European carriers.
Cathay Pacific is controlled by Swire Pacific Ltd.
Asia is the second-largest market for Airbus’s A330 and A340 wide-body planes behind Europe.
Excluding the A380 superjumbo, aircraft of that type account for about 30 percent of all Airbus deliveries to Asian Pacific carriers.
The accord with Cathay may help sales in China, where airlines will take delivery of about a quarter all the planes Airbus builds within the next five years, according to EADS.
“This is a big win for Airbus and the A350,” Airbus Chief Operating Officer John Leahy said. “The major Chinese airlines watch Cathay very closely, as well they should.”
The European company plans to debut the jet with the A350- 900, the variant purchased by Cathay.
That plane, seating 300, will be followed by the smaller A350-800 in 2014. A larger type, the A350-1000 that seats 350, is scheduled for 2015.
By spanning the range from 260 to 350 seats, the A350 aims to rival both Boeing’s new 787 Dreamliner as well as the larger 777 series, which generally seats 300 to 400 passengers and dominates that part of the market. Cathay’s order, announced as the carrier released earnings Saturday, included six 777- 300ERs. (Bloomberg)



