PARIS/WASHINGTON, May 29 (Reuters) – Cathay Pacific Airways Ltd (0293.HK) is poised to place an order worth approximately $2 billion for Boeing (BA.N) 777-8F freighter aircraft now out of the airline Hong Kong is beginning partial renewal of a fleet of 747 special cargo jets, industry sources said Monday.
The selection follows a hard-fought battle for the business of one of the world’s top five cargo airlines, which had compared the all-freight version of the future Boeing 777X jet family to an upcoming cargo model of the existing Airbus A350.
Industry sources have said the competition involved an initial purchase of about six aircraft, worth about $2 billion at list prices, not including discounts from traditional airlines.
Cathay Pacific said it had no immediate announcement to make.
“We continue to invest in and grow our fleet with the addition of new, state-of-the-art and fuel-efficient aircraft,” a Cathay spokesperson said by email.
“We have no specific updates or announcements regarding the fleet at this time.”
Boeing and Airbus declined to comment on commercial discussions.
Boeing launched the 777-8F freighter on an order from Qatar Airways in January 2022, six months after Airbus launched development of the A350 Freighter in an effort to weaken its US rival’s traditional grip on the freighter market.
Cathay Pacific told analysts last November it was looking at more cargo capacity and was “actively working” with aircraft manufacturers to acquire some of the new cargo ships coming to market after 2025.
Located in the heart of pre-pandemic trade routes, Cathay’s decision on where to bet for the next phase of its cargo development is seen as a major test for the two freighters as the airline operates underlying 777 and A350 passenger models.
Cathay Pacific is the world’s fifth-largest air cargo carrier and the third-largest traditional cargo carrier behind Qatar Airways and Emirates when specialty express parcel carriers FedEx and UPS are excluded, according to the latest available data from the International Air Transport Association.
Reporting by Tim Hepher, Valerie Insinna; Edited by Kirsten Donovan and Mike Harrison