Cathay Pacific Airways applied to raise US$2b in debt over the next 12 months. The medium term note program, arranged by HSBC Holdings, is expected to take effect Wednesday, Cathay Pacific said to the Hong Kong Stock Exchange late Tuesday. Such debt programs are offered to institutional investors and give issuers the flexibility to access foreign markets continuously as needed. CE Ivan Chu has ordered more than $10b in new aircraft, including the Airbus A350 and Boeing 777X, to take on mounting competition from Chinese and Middle Eastern airlines. Cathay Pacific has struggled to revive profitability, with the carrier reporting this month that passenger yields slumped to the lowest in 7 years. Cathay expects to take delivery of 12 A350s this year after its first in May. <br/>
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Qantas Airway could potentially more than quadruple its fleet of Boeing Dreamliners as long as the first few aircraft generate a profit, CE Alan Joyce said. The carrier is due to receive the first of its 8 Dreamliners at the end of 2017, and has options and purchase rights to buy another 45 of the long-range, fuel-efficient aircraft. “I’d like to order all of them if I can make a good return out of them,” Joyce said Wednesday. “This aircraft’s technology is going to change the game for Qantas.” Getting new planes will enable more ultra-long non-stop flights to London and Dallas from Australian cities as Joyce turns around Qantas. The airline is working on the first destination for its 787 and will announce the route at the end of this year. Options include Melbourne-Dallas, Perth-London and Brisbane-Dallas. <br/>
The Australian Transport Safety Bureau expects the underwater search for the missing Malaysia Airlines Boeing 777 that operated flight MH370 to wrap up towards the end of the year. In its latest update on the ongoing search efforts, the Bureau says it anticipates completing the search on the 120,000 square kilometre area in the southern Indian Ocean “by approximately Dec 2016”. More than 110,000 square kilometres has been covered so far, although poor weather has hampered search efforts in recent weeks. The govts of Australia, China and Malaysia have agreed to suspend the underwater search once the full area has been covered, should there be no further leads. The ATSB adds that drift modelling in association with the Commonwealth Scientific and Research Organisation continues. <br/>