Orders, profits speed up Hong Kong air show

HONG KONG, Mar 9 (BBC): Billion-dollar plane orders for Boeing and Airbus, as well as Cathay Pacific's higher-than-expected earnings, have grabbed the headlines on the second day of the Hong Kong air show. Hong Kong Airlines announced that it had ordered 38 Boeing aircraft. Cathay, meanwhile, reported that net profit nearly tripled in 2010 and said it would buy planes from Boeing and Airbus. Asia-Pacific is seen as one of the world's fastest-growing plane markets. Companies are benefiting as economic growth boosts consumer spending power. Keen to tap into this, Hong Kong Airlines ordered 38 Boeing aircraft including six 777s, as well as 32 of the company's new 787 Dreamliners. The deal is worth $8.5b (£5.3b). On Tuesday, Air China announced it would buy five 747-8s from Boeing for $1.5b. Cathay said its net income jumped to HK$14b ($1.8b; £1.2b) last year from HK$4.7b a year earlier. It credited increased cargo demand, as well as travel in China for the rise. Cathay also announced some new aircraft orders. The carrier agreed to buy 15 Airbus SAS A330-300s and 10 Boeing 777-300ERs, it said in a press release on Wednesday. However, despite the optimism and large orders, in the short term the airline industry still faces hurdles. High oil prices are hurting profits. To offset those costs, Australia's Qantas Airways has announced a rise in its fuel surcharge for international fares. It is the second time the airline has increased the surcharge in as many months.