Cathay Pacific: Boeing's Cargolux Spat Won't Stop Its Deliveries
21 September 2011 - 12:27AM
Dow Jones News
Cathay Pacific Airways Ltd. (0293.HK, CPCAY) said Tuesday its
plans to receive the new Boeing Co. (BA) 747-8F cargo plane are
unaffected by a contract dispute between Boeing and launch customer
Cargolux Airlines International SA.
Cargolux on Friday rejected the first two planes due to be
delivered this week after a two-year delay, forcing Boeing to
cancel media and customer events and adding embarrassment to a
program already beset by design issues and cost over-runs.
Cathay is one of two other carriers due to receive the revamped
jumbo freighter this year, and said the dispute didn't have an
impact on its own plans.
"We are satisfied that our commercial arrangements with Boeing
take account of the known and disclosed specification and
performance characteristics of the aircraft," the airline said in a
statement.
Atlas Air Worldwide Holdings (AAWW), which is due to receive its
first 747-7F next month, declined comment.
Cargolux said at the weekend that it may look for alternative
aircraft if it can't resolve the problems with Boeing.
Qatar Airways acquired a 35% stake in Cargolux during the
summer, and the Gulf-based carrier has developed a reputation as a
tough negotiator with aircraft manufacturers. It has voiced concern
about delays in delivery of the Boeing 787 Dreamliners it has on
order. It declined comment on the issues affecting Cargolux.
Cargolux said in a statement Saturday that "unresolved
contractual issues" prompted the airline to reject the first two of
the 13 747-8Fs on order. New aircraft types often struggle to meet
the performance criteria provided by manufacturers, with glitches
and extra weight often removed from later planes.
Boeing said Friday that it continued talks with the airline and
looked forward to delivering the two affected planes.
Cargolux said it might look to "source alternative capacity" if
the dispute continued into the upcoming peak shipping season.
-By Doug Cameron, Dow Jones Newswires; 312-750-4135,
doug.cameron@dowjones.com
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