Cathay Dragon, the Hong Kong-based airline formerly known as Dragonair, has signed a major agreement to modernise and expand its fleet.

The carrier has signed a memorandum of understanding (MoU) with Airbus for 32 new A321neo aircraft. Valued at approximately HK$31.7 billion (US$4.1bn) at current list prices, these new fuel-efficient aircraft will replace Cathay Dragon’s existing single-aisle fleet of 23 aircraft, comprising 15 A320s and eight A321s. The airline also operates 24 twin-aisle A330s, all on routes within Asia.

The new A321neos are scheduled to be delivered between 2020 and 2023.

“We look forward to introducing the aircraft into our fleet and expanding the reach of the Cathay Pacific Group to more customers,” said Cathay Pacific’s CEO and Cathay Dragon’s chairman, Rupert Hogg. “The intention to purchase these 32 environmentally-friendly aircraft will allow us to add new destinations to Cathay Dragon’s network. We also intend to increase frequencies on some of our most popular routes in order to provide our customers with more travel choices and convenience.

“Having focused on modernising and expanding Cathay Pacific’s long-haul fleet in recent times, this is an exciting new chapter for Cathay Dragon following last year’s rebranding,” he added.

According to Airbus’ design specifications, the A321neo has a seating capacity of 240 passengers and a range of up to 7,400km. When delivered, the aircraft will feature Cathay Dragon’s latest cabins products, including new seats and in-flight entertainment options.