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Old August 9th, 2007, 05:37 PM   #901
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It looks like a cushion on a cushioned seat.
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Old August 10th, 2007, 11:55 AM   #902
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INTERVIEW- Cathay Pacific steers fleet expansion

HONG KONG, Aug 10 (Reuters) - Cathay Pacific Airways Ltd. , Asia's No. 3 carrier, expects to add about 10 planes a year to raise capacity by up to 7 percent annually over the next half-decade, banking on surging Chinese and regional travel.

Chief Executive Tony Tyler told Reuters on Friday he expected passenger growth in 2008 to keep pace with that up to 7 percent capacity expansion. Passengers increased just 4.1 percent in the first half of 2007, excluding sister carrier Dragonair's figures.

Travel to and from China, the world's fourth-largest economy, is expected to keep climbing alongside its double-digit economic growth, dwindling restrictions and increasingly open skies.

And Asia is propelling growth for the likes of Singapore Airlines , but sky-high fuel prices threaten to bite.

"We're sitting on the edge of the area of fastest growth in mainland China. What we've got to do is grow enough to ensure that Hong Kong retains its position as the leading hub in Asia," Tyler said in an interview.

Carriers such as Singapore Air and Japan Airlines Corp. -- Asia's biggest -- are enjoying a record boom in travel with the region home to some of the world's fastest-growing economies.

Morgan Stanley estimates that global airline seat capacity will expand 3.8 percent in 2007 and 5.2 percent in 2008 -- driven largely by Asia. For Asia alone, those estimates rise to 8-9 percent for 2008-09, versus 5 percent in 2007.

Cathay said this week it would buy another five Boeing jets with a listed price of $1.4 billion. The group's combined fleet now totals 152 aircraft, with a target of more than 180 by 2011.

EXCEED TARGET?

Tyler's forecast implied Cathay would exceed its target.

"To some that may seem conservative," Tyler said, adding that the firm makes projections based on five-year timelines.

"But to others it may seem optimistic -- for example, if your business is a U.S. domestic airline, those numbers seem huge because that's a developed market."

Shares of Cathay slid 4.41 percent on Friday, while the market -- which closed early due to storm warnings -- dropped nearly 3 percent amid a global equity selloff sparked by growing fears of a credit squeeze.

This week Cathay posted a better-than-expected 55 percent rise in first-half earnings, pushing its shares to an all-time high. But CLSA identifies higher fuel expenses -- which it said accounted for 33 percent of operating costs in the first half of 2007 -- as the biggest risk to the carrier's full-year earnings.

Cathay will hedge 42 percent of its jet fuel expenses through the rest of the year, and 22 percent in 2008.

The carrier -- now zeroing in on China with the US$1.1 billion acquisition of smaller rival Dragonair last year and a burgeoning partnership with Air China -- may also have to fend off a growing number of industry entrants in coming years.

Cathay's cargo yield was down 8.3 percent for the period, due to increased competition from international players and also new Chinese players such as Jade Cargo International, Great Wall Airlines Co. Ltd., and Yangtze River Express.

"The only way they can get going is to cut rates, so that brings down yields for us," Tyler said.

Competition looms on the passenger side, too. In June, Hong Kong Airlines, the sister company of China's fourth-largest carrier, announced a plan to buy 51 jets from European planemaker Airbus worth $5.6 billion at listed prices.

Hong Kong Airlines Chairman Ren Wei Dong has publicly criticised Cathay for shutting new entrants out by monopolising Hong Kong's traffic rights. Tyler scoffed at the charge, saying his carrier had spent years snagging the rights.

"Instead of complaining about us, they should get the government to give them traffic rights -- that's what we did."

Tyler also downplayed competition from budget carriers such as newly formed Oasis Airlines -- which will try to float shares in an IPO in 2009 or 2010.

"Airlines have similar issues when they start up. To be crude, they have to get bums on seats," Tyler said.

"But at the end of the day, you have to make your revenues more than cover your costs. Their costs are pretty much the same as our costs, so it's hard to see how they can sell a lot cheaper than us, in a sustainable way." ($1=HK$7.823)
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Old August 10th, 2007, 06:18 PM   #903
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Cathay Pacific boosts Japan services
7 August 2007
Press Release

Cathay Pacific Airways announced today that from 28 October it will operate a sixth daily flight to Narita International Airport in Tokyo – Japan’s biggest international airport.

The additional flight, CX548, will depart Hong Kong early in the morning to provide more options throughout the day for business travellers and the leisure travel market.

Subject to government approval, Cathay Pacific will code-share on the new services to Fukuoka and Sendai, also from 28 October, to be operated by its sister airline Dragonair. Dragonair announced the launch of its new non-stop services earlier today.

The new CX6700 code-share service will operate daily non-stop from Hong Kong to Fukuoka, supplementing Cathay Pacific’s existing daily Fukuoka flight that goes via Taipei. Sendai becomes a new addition to the Cathay Pacific network when the CX6702/3 code-share service begins operation.

The service enhancements announced today mean the number of flights operated by the Cathay Pacific Group from Hong Kong to Japan will increase from 91 to 101 each week, giving a further boost to Hong Kong’s position as a leading international aviation hub.
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Old August 11th, 2007, 06:22 AM   #904
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Cathay sees upswing for cargo in 2nd half
Bloomberg News
10 August 2007

Cathay Pacific Airways forecast Thursday that it would increase cargo yield in the second half as demand to carry computer components and auto parts surges. "We are heading into the busy time of the year as we get into late August and September," Tony Tyler, Cathay's chief executive, said in an interview. "Things do look they're firming up a little bit now."

Even as it reported at 55 percent increase in profit on Wednesday, Cathay Pacific said its cargo yield, or average rate per shipment, fell 8.3 percent in the first half. The drop came amid increasing competition from Deutsche Lufthansa, Singapore Airlines and other carriers that have set up ventures in China. Cargo revenue accounted for 21 percent of the airline's revenue in the first half.

Cathay Pacific added 21 routes into China, the world's second- largest aviation market, with the purchase of Hong Kong Dragon Airlines last year. The airline aims to add at least 11 more freighters by the end of 2009 and to form a Shanghai cargo venture with Air China by the end of the year to tap China's export growth.

"The mainland market is a huge market," Tyler said. "It's going to be much, much bigger. With Dragonair being part of Cathay Pacific, over the years we are going to play a major part in the development of that market."

The Shanghai-based venture would let Cathay Pacific fly cargo from China directly to the United States and Europe instead of via Hong Kong.

Chinese overseas air-cargo shipments are expected to grow 14 percent a year until 2009, according to the International Air Transport Association. Cargo volume rose 15 percent to 1.83 million tons in the first six months.

The Hong Kong airport's plans to build a new cargo terminal, scheduled to open in 2011, may also help Cathay Pacific compete with other Asian carriers. The airport handled 3.6 million tons of cargo in the 12 months that ended in March, up 2.8 percent from a year earlier.

Cathay Pacific ranked behind only Korean Air Lines, Lufthansa and Singapore Air in terms of international cargo traffic in 2005, according to the International Air Transport Association.
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Old August 11th, 2007, 06:23 AM   #905
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Cathay increases its service
10 August 2007
Weekend Courier

Hong Kong... in all its glory.

THE increase in Perth tourists heading to Hong Kong to take advantage of the extensive shopping and amazing food has led to Cathay Pacific Airways adding an additional weekly flight between Perth and Hong Kong.

The additional route, which will depart on Mondays, will begin operating on October 29. It will depart Perth at 12.55am and arrive in Hong Kong at 7.35am. The new route that will depart Hong Kong on Mondays for Perth will leave at 3.05pm, arriving in Perth at 11.45pm.

Hong Kong is once again becoming a tourist hotspot for all Australians. The new Perth service comes alongside Cathay Pacific's already announced increased flights between Hong Kong and Melbourne, which has been increased to three flights per day. The airline has also announced a daily service from Adelaide to Hong Kong starting October 1.

We are delighted to be able to offer more travel options from some of our most important markets, made possible by our continued fleet expansion, Cathay Pacific chief executive Tony Tyler said.

The extra services to Australia are made possible by the addition of a new Airbus A330 aircraft and those in North America by the imminent arrival of our new fleet of Boeing 777-300ER aircraft.

This will all be enhanced by the rollout of our new longhaul inflight seating and service in all classes.
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Old August 12th, 2007, 06:16 AM   #906
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Some New destiny for America or Latin America?
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Old August 12th, 2007, 06:21 AM   #907
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Quote:
Originally Posted by Ah! Monterrey View Post
Some New destiny for America or Latin America?
Only strengthening existing services to the US and no plans for Latin America yet.
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Old August 12th, 2007, 06:58 PM   #908
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Old Cathay Pacific Commercials







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Old August 14th, 2007, 06:43 PM   #909
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Cathay Pacific releases combined traffic figures for July 2007
14 August 2007
http://www.cathaypacific.com/cpa/en_...0010d21c39____

Cathay Pacific Airways today released combined Cathay Pacific and Dragonair traffic figures for July 2007 that show record number of passengers being carried in the first month of the summer peak. Cargo tonnage for the carriers rose over the same month last year, but lagged behind the rise in capacity for the same period.

In July Cathay Pacific and Dragonair carried a total of 2,104,151 passengers, up 2.8% on the same month last year. The passenger load factor was also up – by 1.1 percentage points – to 84.6%, while capacity, measured in available seat kilometres, rose by just 0.8% over 2006. For the year to the date the number of passengers carried was up 1.6% compared to a capacity increase of 1.5%.

The two airlines carried a total of 132,947 tonnes of cargo in July, a rise of 4.1% over July 2006, while the cargo load factor dropped by 3.1 percentage points to 66.1%. Capacity for the month, measured in terms of available cargo and mail tonne kilometres, jumped by 10%. For the year to date, combined cargo tonnage rose by 0.2% compared to a capacity rise of 5.4%.

Cathay Pacific General Manager Revenue Management, Sales & Distribution Ian Shiu said: “Passenger numbers for both Cathay Pacific and Dragonair were very healthy in July and we were pleased to see the load factor rising. Corporate demand remained strong and we benefited from a good mix of front-end and back-end passengers. Advance bookings are strong and we expect another solid month in August.”

Cathay Pacific Director & General Manager Cargo Ron Mathison said: “There has been a continuing shift to ocean freight and yield is under pressure particularly on our N.E. Asian routes. However, demand out of Mainland China remains very strong and we will add more long-haul capacity to India, United States and Europe in the second half, which should boost tonnage growth.”
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Old August 16th, 2007, 12:57 PM   #910
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Cathay Pacific backs price fixing probe.
13 August 2007
Lloyd's List

CATHAY Pacific Airways has confirmed it is co-operating with “authorities in various parts of the world” that are probing allegations of price collusion on freight surcharges for fuel, security and war risk.

Speaking at last Wednesday’s results announcement, airline chairman Christopher Pratt said that while the airline is helping investors, the outcome of the probe “is subject to considerable uncertainty”.

The airline, together with British Airways, Singapore Airlines, Qantas, Air New Zealand, Japan Airlines and Lufthansa Cargo, is being investigated by the US Department of Justice, Britain’s Office of Fair Trading and the European Commission. Lufthansa has already paid $85m to settle a class action claim in the US brought by airfreight firms and a settlement has already been reached in Canada.

Mr Pratt declined to comment further on the investigation. Sources said privately Cathay Pacific thought it had a strong defence because all the surcharges imposed on cargo shipments were first approved by Hong Kong’s Civil Aviation Department.

Overall, Mr Pratt said that while the results for the cargo operation were “disappointing” in the first half, the airline remained “bullish about long-term prospects” for airfreight. This was despite a fall in yields as a result of intense competition from rival carriers and ocean shipping.

The airline posted a 54% surge in net profit to HK$2.58bn ($331m) in the first six months on the back of a 27% rise in turnover to HK$34.63bn.

Cargo contributed HK$7.38bn to total turnover, equivalent to 21%, a fall from a few years ago when cargo contributed about 28% to turnover. Mr Pratt said the airline generally has a stronger second half than first half. Yields for Cathay Pacific’s cargo operation fell 8% to HK$1.55 against HK$1.69 last year, despite an 8% rise in Cathay Pacific’s own cargo volumes to 623,000 tonnes.

Chief executive Tony Tyler said it “would only need a very small amount” of the cargo that has shifted to ocean freight to return as airfreight for yields to improve.

He said: “We have had a strong bull run of five years,” adding that the airline could not expect yields to steadily rise. Mr Tyler confirmed the carrier has submitted a proposal to develop a third cargo terminal at Hong Kong International Airport that should be open in 2011. He said that in the context of falling yields and increased competition it was important for the third terminal to be built because it would reduce costs and improve operating efficiencies.

Chief operating officer John Slosar said the airline is continuing to look at the development of its fleet. “In terms of cargo, the number of aircraft will grow over time.” This includes the introduction of long range Boeing 747-400 ERFs, with the first three in an order of six aircraft set to join in 2008. The airline will also phase out its Boeing 747-200 and 300 series freighters.

Mr Tyler said the carrier is also evaluating the Boeing 747-8 model and the Airbus A380, although no decision had been taken to acquire either aeroplane.
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Old August 17th, 2007, 12:01 PM   #911
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Quote:
Originally Posted by hkskyline View Post
Only strengthening existing services to the US and no plans for Latin America yet.
actually, i doubt CX will ever fly non-stop to major cities in South America. Not to say that HKG to major cities to like in Brazil is the farest point in the world (start from HKG). There are no airplane that can fly that far, even A340-500, and the new 777-200LR can't get that far either (assuming flying non-stop)

The current CX's flights to Los Angeles and South Africa are as close as CX will ever move in to the South America market i think (passengers continue their trip using other airlines). Considering the market size there isn't big enough to support large # of seat capacity. And it is tough for CX to gain 5th freedom right in US or South Africa to continue flying to South America.
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Old August 17th, 2007, 03:00 PM   #912
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Quote:
Originally Posted by vincent View Post
actually, i doubt CX will ever fly non-stop to major cities in South America. Not to say that HKG to major cities to like in Brazil is the farest point in the world (start from HKG). There are no airplane that can fly that far, even A340-500, and the new 777-200LR can't get that far either (assuming flying non-stop)

The current CX's flights to Los Angeles and South Africa are as close as CX will ever move in to the South America market i think (passengers continue their trip using other airlines). Considering the market size there isn't big enough to support large # of seat capacity. And it is tough for CX to gain 5th freedom right in US or South Africa to continue flying to South America.
CX code share with AA.
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Old August 21st, 2007, 07:37 PM   #913
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A350 XWB and 787 enter the frame at Cathay Pacific
21 August 2007
Flight International

Hong Kong carrier's large 747-400 fleet means that it is in no rush for A380 or 747-8

Cathay Pacific Airways is expressing potential interest in the Airbus A350 and Boeing 787, but says it remains in no hurry to order the ultra-large Airbus A380 or Boeing 747-8.

General manager purchasing and aircraft trading Greg Hughes says that the airline may be interested in future in the A350 XWB and 787, but only the larger variants of the twinjets.

The Hong Kong carrier has long said that each of the aircraft types are probably too small for its requirements.

"Later versions of the 787 such as the 787-9 will be of interest to us on certain routes, but it will not start service until 2011 at the earliest, while Boeing has not yet confirmed whether it will build the 787-10," says Hughes in the airline's staff newsletter.

"The A350 XWB is a larger family of aircraft than the 787, and the A350-900 and A350-1000 will offer good alternatives for us in the future."

Separately, Cathay has for years been seen by Airbus and Boeing as a potential customer for new ultra-large offerings, but the airline has said repeatedly that it is not in a hurry to make a decision.

There has been renewed speculation in recent weeks that Cathay may be stepping up its evaluations, however, and Airbus will take the A380 to Hong Kong in September to attend the Asian Aerospace exhibition.

Hughes says: "We will continue to evaluate larger aircraft such as the A380 and 747-8 Intercontinental, but as we have a large fleet of Boeing 747-400s, which will be with us for some years, we feel no need to make a decision on the large aircraft at this time."

The airline's passenger fleet of 87 aircraft comprises 24 747-400s. It is due in September to take delivery of its first of 23 leased and purchased Boeing 777-300ERs, which it says will be "the primary long-haul aircraft for the airline until well into the next decade".

In addition to 747-400s, Cathay's all-widebody fleet comprises A330-300s, A340-300s, A340-600s and 777-200/300s. Dragonair operates A320 family narrowbodies and A330-300s.
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Old September 7th, 2007, 08:10 AM   #914
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Cathay Pacific further boosts Australia services with addition of more flights to Sydney
5 September 2007
Press Release

Cathay Pacific Airways today announced that it will further strengthen its services to Sydney, Australia, by adding an extra flight on four days each week from 1 February 2008. When the new Sydney services begin, Cathay Pacific will operate a total of 25 flights each week to the city and a total of 58 weekly flights from Hong Kong to Australia.

The additional flights will provide more options for passengers travelling to and from Australia’s biggest city and at the same time help reinforce Hong Kong’s position as one of the world’s leading international aviation hubs.

The new CX161 service, operated by an A330-300 aircraft in a three-class configuration, will depart on Monday, Tuesday, Thursday and Saturday from Hong Kong at 21.20, arriving in Australia at 09.30 the following morning. The new flight supplements existing early-morning, early-evening and late-night departures to offer more passenger choice. The return CX162 service departs Sydney every Tuesday, Wednesday, Friday and Sunday at 11.05, arriving into the Hong Kong hub at 18.05 the same day.

Cathay Pacific has been continually enhancing its services to and from Australia, providing convenient connections through the Hong Kong hub onto its own global network and the extensive Mainland China network operated by its sister carrier Dragonair.

In July this year, Cathay Pacific announced a substantial boost to its Australia services with additional flights to three major cities. Melbourne will move to a three-times-daily service from 1 October; Adelaide will be go from four flights a week to a daily service on the same date; and Perth gets an extra flight every Sunday from 28 October, moving to five flights a week.
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Old September 7th, 2007, 09:56 AM   #915
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Why the Airbus 380 doesn't start its first commercial flight from Hong Kong to Sydney instead of S'pore to Sydney?
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Old September 7th, 2007, 10:55 AM   #916
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Why the Airbus 380 doesn't start its first commercial flight from Hong Kong to Sydney instead of S'pore to Sydney?
Cathay has not ordered any A380 planes. Airbus has been trying very hard to court Chinese customers but without much success so far. That's why they sent the plane to Hong Kong for the low-fly across Victoria Harbour in a publicity stunt this week.
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Old September 7th, 2007, 07:03 PM   #917
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DRAGONAIR TO JOIN oneworld ALLIANCE ON NOVEMBER 1
3 September 2007
Press Release

Dragonair today announced that it will become a member of oneworld®, the leading quality global airline alliance, on November 1 this year, offering the alliance's full range of services and benefits to its customers and at the same time greatly enhancing oneworld's coverage in Mainland China.

"Becoming a member of oneworld is an exciting development for Dragonair and is the latest benefit to result from our becoming part of the Cathay Pacific Group," said Chief Executive Officer Kenny Tang. "We are pleased that oneworld customers will be able to connect through Hong Kong to our extensive network of destinations in Mainland China and to the increasing number of business and leisure destinations we serve in the region."

oneworld Managing Partner John McCulloch added: "Since its launch eight years ago, oneworld has been the only alliance with a member from greater China, in our Hong Kong-based founder member Cathay Pacific. The addition of Dragonair means that oneworld will maintain its lead in this important, fast-growing region. With our combination of Dragonair, Cathay Pacific and the award-winning Hong Kong hub, it means that oneworld will offer the best quality airline service for travel to or from the whole of China."

Twelve of Dragonair's Mainland China destinations - Changsha, Chengdu, Chongqing, Fuzhou, Guilin, Haikou, Kunming, Nanjing, Ningbo, Sanya, Shenyang and Wuhan - will be new to the oneworld network, taking the number of Mainland China destinations served by the alliance to 22.

Three other Dragonair regional destinations will be additions to oneworld's existing network - Kota Kinabalu in Malaysia, Phuket in Thailand and Phnom Penh in Cambodia, with the latter country being served by oneworld for the first time. With Dragonair's joining oneworld, the alliance's network will cover more than 700 destinations in almost 150 countries and territories.

Joining the alliance will mean Dragonair's frequent flyers can earn and redeem mileage awards on all oneworld member airlines, while top-tier members will have access to 500 airport lounges worldwide. At the same time, members of other oneworld airlines' frequent flyer programmes will be able to earn and redeem awards and receive all other oneworld benefits when flying on Dragonair. The airline's network will also be covered by oneworld's extensive range of alliance fares.

Dragonair's sister airline Cathay Pacific is one of the founding members of the 10-strong oneworld alliance. Full members include American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, LAN, Qantas, Japan Airlines, Malev Hungarian Airlines and Royal Jordanian Airlines. Around 20 other carriers are affiliate members.

oneworld, the only alliance to enable passengers to fly throughout its network on any combination of carriers using electronic tickets, was voted the World's Leading Airline Alliance for the fourth year running in the 2006 World Travel Awards.

Its member airlines operate 9,500 departures a day with a combined fleet of some 2,500 aircraft, carrying 320 million passengers and earning total revenues of US$90 million in 2006. It is the only airline alliance with a truly global network, as the only grouping with any member airlines in the Americas south of Mexico, in the Middle East and in Australia.
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Old September 8th, 2007, 06:30 AM   #918
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^ Great news. Oneworld will become the only alliance with a world class Chinese airline and hub offering extensive connections to mainland China and SE Asia.
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Old September 8th, 2007, 08:43 AM   #919
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I would love to see Cathay with a large fleet of A380's, hopefully A380-900's if Airbus will get on the ball with those.
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Old September 8th, 2007, 03:53 PM   #920
yyzhyd
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First of Cathay's new Boeing 777-300ERs can be seen here... http://www.microvoltradio.com/images/kpae1898.jpg

IIRC she's to be inaugurated on the HKG-JFK route later this year.
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