• rsz_airbus_50th_years_anniversary_formation_flight_-_air_to_air
    Airbus
    Stock Code:
    AIR
    Business Type:
    Planemaker
    Date Founded:
    1970-12-18
    CEO:
    Guillaume Faury
    Headquarters Location:
    Toulouse, France
    Key Product Lines:
    Airbus A220, Airbus A320, Airbus A330, Airbus A340, Airbus A350, Airbus A380

Announced in the summer of 2021, Airbus launched its A350 freighter (A350F) program to the world. This offering represented the European planemaker's first purpose-built freighter since the A330-200F - of which 38 were produced and delivered. Touted as a "large widebody freighter to shape the future of airfreight," orders for 39 A350F airframes have been secured to date. Let's look at the customers and why sales are in the double digits.

Who are the customers for the A350F?

According to Airbus' official orders and deliveries records, the planemaker currently has orders for 39 airframes. Here is how orders breakdown:

Customer

Quantity

Air France

4

Air Lease Corporation (ALC)

7

CMA CGM

4

Etihad Airways

7

KLM

4

Silkway West Airlines

2

Singapore Airlines

7

Undisclosed

4

Back in November 2022, Simple Flying reported that Middle Eastern carrier Kuwait Airways was reportedly ready to introduce cargo flights into its operations. According to ch-aviation, the airline was in talks to convert its order for five A350-900 passenger aircraft into two passenger variants and three A350 freighters. Last summer, Kuwait Airways said that it was hoping to receive deliveries of dedicated cargo planes in the middle of this year. No further details on this situation have surfaced since, but the timeline to acquire freighters in the short term doesn't align too well with Airbus' goal of having the A350F enter service in 2025.

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Market saturation?

Orders for 39 airframes over one and a half years. Is this good? While it's not exactly bad, it's also not the flood of orders witnessed by the Airbus A321XLR upon its launch. The A321XLR was announced in June 2019, and by August 2020, had accumulated orders from 24 customers for 450 airframes. While it is a little bit like "comparing apples to oranges," the contrast shows how a new aircraft offering can become a runaway hit.

But while the A321XLR somewhat created a class of its own, the A350F is entering a market populated with a number of comparable rivals. Of course, there's the incredibly popular, direct-from-Boeing, 777F. For this type, Boeing has already racked up orders for 342 airframes since being launched in 2008. Then there are the various widebody converted-freighter options on the market for a wide variety of types: The Boeing 747, 777, 767 - as well as the Airbus A330 (no A380, unfortunately).

The uphill battle continues with Boeing now offering a worthy competitor in the form of the 777X freighter. Launched several months after Airbus' A350F announcement, the type has already amassed orders for over 50 airframes. The largest orders come from Qatar Airways (34 firm, 16 options), Cargolux (10), and Lufthansa (seven).

Additionally, if we combine the presence of these competing airframes with the fact that existing in-service freighters can operate far longer than their passenger counterparts, then the A350F may be entering a fairly saturated market. Indeed, as Inbound Logistics noted in November 2022, the air cargo capacity crunch has greatly improved over the past two years: Airlines have added additional freighters to their fleets or converted passenger planes. Additionally, with more passenger services returning, more belly-hold capacity has returned as well.

A long-term game

Ultimately, Airbus didn't offer the A350F to fill a short-term demand for air cargo capacity. The timeline for aircraft programs is multiple years, and so the European planemaker knows that orders will continue to accumulate years into the future. The firm will have to emphasize its efficiency advantages to convince potential customers why the A350F is a better choice than the 777X freighter or a cheaper conversion of existing aircraft - as its clear in its online marketing material:

"As for the proposed 777-8F, while the current estimates suggests that it could offer six percent more volume and seven tonnes more payload than the A350F, this would come with a hefty burden of at least 32 additional metric tonnes (32,000kgs) of take-off weight (Airbus’ initial estimate) – which increases fuel burn, CO2 emissions and airport charges." -Airbus

One last important thing to note is that, at the end of 2027, the ICAO's new stringent emissions standards will come into effect. Airbus notes that at this point all production of current freighters will need to stop. As we move closer to this deadline, Airbus could see a boost in orders.

What do you think of the A350F? Will sales figures pick up in the months and years to come? Share your opinion by leaving a comment!

Sources: Upply, Inbound Logistics, Airbus