Cathay Pacific: Boeing's Cargolux Spat Won't Stop Its Deliveries

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, [e-mail]