Background
References:
CONFIDENTIAL
A: DTP background note on Cathay Pacific
B: Exchange of letters between Sir Adrian Swire and the
Prime Minister
Aircraft Orders
1.
Cathay Pacific is a major customer for the UK aerospace industry. The airline have an all Rolls-Royce powered fleet. The airline is considering currently whether to purchase the Boeing 777 or the Airbus A330. Both airframes,
especially the Airbus, have major UK content. Both could be
powered by Rolls-Royce engines.
2. The Rolls-Royce Trent engine is, currently, under very
expensive development and its future (together with that of
the company in its present form) is dependent on winning major orders such as this one. A contract from Cathay would
also help overcome the marketing problems created by British Airways' decision not to choose the engine.
3. A recent letter from the Prime Minister to Sir Adrian
Swire includes a reference to DTI making contact with the
airline to discuss its links with UK manufacturers. DTI
are willing to see whether they can assist Cathay and improve still further the company's relationship with the UK aerospace industry. We understand that Cathay are about
to announce the purchase of B-777's with Rolls-Royce
engines. They are also encouraging China Southern to order
Boeing 777 aircraft with Rolls-Royce Trent engines instead
of the A330s.
ASAS
4.
As agreed at the Secretary of State's office meeting on
RB2AAT/1
CONFIDENTIAL