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Airbus secures six A350 cargo jet deal with Cathay Pacific

EditorPollock Mondal
Published 12/08/2023, 04:17 AM
© Reuters.

In a significant win for Airbus SE (OTC:EADSY), Cathay Pacific Airways (OTC:CPCAY) has selected the European aerospace giant for a new order of six A350 freighter aircraft, marking a strategic shift for the Hong Kong-based carrier. The contract also includes options for Cathay Pacific to acquire an additional 20 next-generation composite planes, with deliveries starting from 2027.

This development represents Airbus' latest triumph over its American rival Boeing (NYSE:BA) Co. and is Cathay Pacific's most substantial order since 2007. The deal not only strengthens Airbus' position in the cargo aircraft market but also signals a diversification in Cathay’s traditionally all-Boeing freight fleet.

Cathay Pacific, a major player in global air freight capacity, is set to receive these new A350 cargo jets beginning in four years. Ronald Lam of the Cathay Group highlighted the significance of this acquisition, stating that the new aircraft will aid in their expansion plans while also advancing their environmental goals. The Rolls-Royce (OTC:RYCEY) Trent-XWB97 engines powering these planes are expected to contribute to these sustainability targets.

The new A350 freighters will join Cathay Pacific's diverse fleet, which currently includes various Boeing models. This move comes as the airline looks to bolster its market position following a period of challenges due to extended COVID-related travel restrictions.

With Cathay Pacific's commitment, Airbus has now accumulated forty-one orders for their A350 freighter from several airlines, including Qatar Airways, CMA CGM Air Cargo, Etihad Airways, Silkway West Airlines, and Singapore Airlines (OTC:SINGY). The A350F model boasts considerable fuel savings and payload benefits compared to its competitors, such as the Boeing 747 and the forthcoming Boeing 777-8 freighter. Notably, some of these A350 freighters are scheduled for delivery one year prior to those destined for Cathay Pacific, offering airlines an earlier opportunity to capitalize on its efficiency advantages.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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