Cathay Cargo's $2.7 Billion Order Boosts A350F Program
Cathay Cargo has decided to order the A350 freighter for its next generation of cargo aircraft after it initially appeared the carrier would opt for Boeing’s latest widebody freighter.
The Hong Kong-headquartered airline has placed an initial firm order for six of the Airbus aircraft but has also secured the right to order 20 more. The deal is worth around $2.7bn at list price.
The six aircraft are due to be delivered in 2027 and will continue until 2029.
According to its interim report, Cathay currently operates a fleet 20 freighters – six 747-400ERFs and 14 747-8Fs.
Its 747-400s are all owned and have an average age of 14.5 years, while its 747-8Fs have an average age of 10.4 years.
The 747-400s will be pushing 20 years of age when deliveries of the A350Fs are due to start.
The airline pointed out that the order comes as Hong Kong International is set to operate with three runways next year, opening up opportunities for expansion.
Cathay Group chief executive Ronald Lam said: “As we move into 2024, our rebuild journey is gaining momentum. This order marks another major component in our investment for the future.
“It reflects Cathay’s confidence in the Hong Kong hub as we look ahead to the opportunities provided by the Three-Runway System.
“These highly fuel-efficient, next-generation freighters will provide important additional cargo capacity, expand our global network and contribute to our sustainability leadership goals.”
The freighters will link Hong Kong and the Chinese Mainland with long-haul destinations in North and South America as well as Europe, Cathay said.
Cathay is already one of the largest operators of the A350, with a current fleet of 47 aircraft.
The order is also a boost to the A350F programme, which after an initial surge in orders has slowed down this year.
In total, including the Cathay Cargo order, Airbus has received 55 orders for the new freighter model, which was launched in late 2021.
However, until the Cathay deal was announced, only four had been ordered this year after an initial surge of agreements in late 2021 and 2022.
Other carriers to have placed an order are: Air France (4), Air Lease Corp (7), CMA CGM (4), Etihad Airways (7), Martinair (4), Silkway West (2), Singapore Airlines (7) and undisclosed (4).
The deal also represents a coup over Boeing as the two airframers battle it out in the widebody freighter market with their two competing offering.
Reports suggest that both companies had been in negotiation with Cathay, with it initially looking like the carrier would opt for the B777-8F.
Airbus chief commercial officer and head of international Christian Scherer said: “There’s a new standard in the cargo space and we are gratified that such a savvy global air-cargo operator as Cathay has joined the growing number of reference players in the airfreight industry selecting the A350F.
“The aircraft will fit seamlessly with Cathay’s existing A350 passenger fleet, while lowering operating costs to a level never before seen in increasingly competitive cargo markets. At the same time, it will bring a very significant reduction in carbon emissions, contributing immediately to sustainability goals.”
The A350F can carry a payload of up to 111 tonnes and can fly up to 8,700 kms. Its cargo door will have a width of 4.4 m.
Boeing 777-8F offers a maximum structural payload of 118 tonnes (revenue payload 112.3tonnes) and a range of 8,167 km, while its cargo door has a width of 3.72 m.
The Boeing B777-8F freighter programme has also slowed down this year. Orders placed for the Boeing aircraft include: Silkway West (2), Cargolux (10), Lufthansa (7), ANA (2) and Qatar (34).
Ethiopian Airlines also signed an MoU for five of the aircraft, although it is not clear whether this order was later firmed up.
The last deal that Boeing struck for the model was with Silk Way West at the end of last year.
