Hong Kong Airlines orders 10 Airbus A380s in $3.8bn deal

2012-01-08 07:42:21 GMT+7 (ICT)

HONG KONG (BNO NEWS) -- Hong Kong Airlines (HKA) has placed an order for 10 Airbus A380 aircraft in a deal valued at approximately $3.8 billion at list prices, an official at the airline told Bloomberg Television on Friday.

Kenneth Thong, head of corporate governance and international affairs at Hong Kong Airlines, said the carrier expects Airbus to deliver the first A380 in 2015. "We think the business connection between Asia and Europe is going to be very exciting for the next couple of years, after the current (economic) crisis is over," he told Bloomberg. "We are planning for the aftermath."

Airbus refused to comment on the reports and said it will reveal new orders at a joint press conference with its parent company EADS on January 17. A deal for 10 Airbus A380 aircraft would be worth some $3.8 billion at list prices, but aircraft manufacturers usually provide significant discounts.

The Chinese airline had been expected to announce a new order with Airbus last year, but China's opposition to a new European Union (EU) carbon emissions trading scheme had threatened the expected deal. Airlines flying in and out of the EU now have to offset some of the carbon that their planes emit by buying 'allowances' from greener industries.

The contract with Hong Kong Airlines will raise the order backlog at Airbus to 188.

-- © BNO News All rights reserved 2012-01-08

USD or HKD?

USD or HKD?

AB 380 can sell for US$310million.

The scarey part is that this airline most likely will cram as many people as possible on board.

USD or HKD?

USD

A European plane being sold in USD and not Euro? Ooooo...

Or perhaps the agreed price is in US$. Not sure how the actual payment will be made.