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Case Study: Cathay Pacific

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Cathay Pacific, based in Hong Kong offers scheduled flights for passengers and cargo across 200 destinations in America, Australia, Asia, North America, Europe and Africa using a large fleet of varying sizes of planes focusing on widebody passenger airplanes, specifically inside the medium and small requirements set by Boeing. With 146 planes in their aircraft inventory, plus additional planes through orders, Cathay has made many investments, in order to build up Hong Kong as a global transport hub. As Cathay is one of the members of the oneworld alliance, they have member airlines with airberlin, American Airlines, British Airways, Finnair, Iberia, Japan Airlines, LATAM Airlines, Royal Jordanian, Sri Lankan Airlines,
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The focus of this was to look at the growth of the market as well and to replace them with newer generations of aircraft for a more pleasant flight experience for its customers. The replacing planes would be the A320/1 Neo as well as the Boeing 737 Max. however, Jamie Carter, Manager of Aircraft Procurement & Trading at Cathay said that they would also look towards other options, “including aircraft coming off lease”.

This is a strategy that in September 2017, Cathay Pacific themselves announced that they would be delaying the delivery of longer haul aircrafts, and will instead, opt for smaller aircrafts. A HK$31.7 billion order was made for 32 short - haul aircrafts. As well as this, they are downsizing several of their Airbus planes, going from 26 Airbus A350-1000 planes, to 22 Airbus A350-1000 planes, ordering smaller A350-900 planes, increasing their inventory from 22 aircrafts to 28. In additional of ordering smaller planes, Cathay will delay the ordering of five more A350-1000s to 2021, one year after the expected
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