December 6, 2007 -- Cathay Pacific Airways Ltd. said Thursday it will buy eight A330 Airbus aircraft with a total basic price of $1.7 billion to expand its fleet.

It didn't disclose the actual cost of the planes. Airlines usually receive significant discounts from list prices on large orders.

The Hong Kong-based airline said delivery is scheduled for between 2010 and 2012. The new planes will be used by Cathay and its sister airline Dragonair for destinations in Asia Pacific and mainland China, it said in a statement.

"This is another significant development for the Cathay Pacific Group as we continue expanding our regional and long-haul fleets to further strengthen Hong Kong's position as a leading international aviation hub," Cathay Pacific Chief Executive Tony Tyler said in the statement.

Tyler said the airline also was considering leasing or buying more Airbus A320 aircraft to meet expected growth on secondary routes in the region.

Last month, Cathay ordered 17 new Boeing planes worth $5.2 billion. The latest order of eight aircraft will take the Cathay group's fleet size to 200 planes.

The company said it will pay for the transaction in six installments and fund the deal through commercial bank loans, other debt instruments or cash from its operations.

Source: Associated Press Newswires