Hong Kong s Greater Bay Airlines eyes $1.8b plane order

A new Hong Kong-based airline with ties to Beijing is considering ordering up to 30 narrow-body jets from either Boeing Co. or Airbus SE as it tries to establish itself in a market dominated by Cathay Pacific Airways Ltd.

Greater Bay Airlines_ which is awaiting final approval to operate commercial passenger flights out of Hong Kong_ is assessing whether to opt for Boeing s 737 Max 10 model jets or Airbus s A321neos_ a person with direct knowledge of the plan said. Such an order could amount to as much as $1.77 billion_ according to calculations by Bloomberg News and Avitas Inc. using current aircraft prices.

The carrier_ founded by property magnate Bill Wong_ is in talks with both Boeing and Airbus_ according the person_ who asked not to be identified as the matter is private. The timing and eventual size of the order depends on the Covid-19 situation in Hong Kong_ the person said.

 We shall continue to revisit our aircraft needs to match with customer needs and our expansion strategy under the dynamic market conditions_ Jodie Lai_ head of marketing at Greater Bay Airlines_ said by email.

A spokesman for Airbus said the company doesn t comment on discussions with airlines. A Boeing representative declined to comment.

Ambitious plan
Greater Bay Airlines has laid out an ambitious plan to fly to 104 destinations in mainland China and much of Asia_ even as its Hong Kong base sticks to a rigid Covid-Zero strategy that threatens to wreck the city s status as an international hub and has left Cathay reeling.

The upstart carrier received its air operator s certificate in October_ enabling it to carry out charter and cargo flights. It will be able to start commercial passenger services after regulators approve an air transport license.

A fresh order for Boeing_ which could see its 737 Max plane return to the skies in mainland China this month after a ban of nearly three years_ would help it gain a foothold in Hong Kong_ where Airbus dominates the single-aisle market. A win for Airbus would enable the European manufacturer to extend that lead.

Greater Bay Airlines has a leased Boeing 737-8 jet. Donghai Airlines_ its sister over the border in Shenzhen_ operates an all Boeing single-aisle fleet. Wong is also the founder of Donghai Airlines. He is a member of China s key political advisory body_ the Chinese People s Political Consultative Conference.