Airbus said Wednesday it has finalised a more than $4 billion order with Cathay Pacific for 32 of its A321neo aircraft to revamp the Hong Kong-based carrier's regional affiliate.

The single-aisle medium-haul jets will be operated by Cathay Dragon which flies from Hong Kong to a number of Asian destinations, Airbus said in a statement.

A preliminary agreement had been signed in August.

The A321neo planes "will replace and modernise Cathay Dragon's current in-service fleet of 15 A320s and eight A321s, with the additional aircraft allowing the airline to capture growth opportunities in the region," Airbus said.

Cathay Dragon currently covers 56 Asian destinations, including 28 in mainland China.

The A321neo can seat up to 240 passengers and uses more fuel-efficient engines to reduce fuel consumption by up to 20 percent per seat, Airbus said.

It competes with rival Boeing's 737 MAX 10.

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AIRBUS GROUP

CATHAY PACIFIC AIRWAYS

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