Atlas Air, the world’s largest operator of 747 jumbo jets, by decade’s end will operate non-Boeing aircraft for the first time signing an order on Monday that makes it the largest customer for Airbus’s brand-new A350 widebody cargo jet.
The decision is a major coup for Airbus which has rarely offered a production freighter in a market dominated by Boeing (NYSE: BA) for decades.
Parent company Atlas Air Worldwide Holdings announced a firm order for 20 Airbus A350 freighter aircrafts, with options for an additional 20 aircraft, to support growing demand for its transport services. Deliveries are expected to begin in 2029 and be completed in 2034.
Early access to the aircraft was a key reason to go with Airbus, Atlas Air CEO Michael Steen said in a phone interview, adding the new aircraft will mostly be used to grow business because the fleet is relatively modern.
“There’s a scarcity of wide body freighters in the world today. Demand for dedicated widebody freighters has continued to grow [as retirements of older widebody freighters accelerate]. We don’t have enough aircraft in our fleet today to support the demand that we have in our pipeline. And I don’t expect that to change over the next several years,” he said.
Four of the A350s eventually will replace older Boeing 747-400s when they reach the end of their useful life, but that won’t happen until the mid-2030s, he explained.
The Atlas Air fleet currently stands at 113 Boeing aircraft, including 747-400s, 747-8s, 767-300s and 777s.
Steen said the Airbus order doesn’t preclude Atlas from placing future orders with Boeing or buying used aircraft in the short term to meet capacity needs, noting the airline has picked up nine aircraft in the secondary market over the past two years.
The fact that Airbus is further along in development of the A350 freighter than Boeing is with its next-generation freighter, the 777-8, tipped the scale towards the European manufacturer, Steen suggested.
“Both platforms are very, very capable. When we compare the two, the A350 is of course a tested aircraft today because it’s already in operation on the passenger side. So the technology has been tested. The aircraft is going to be available before the 777-8 freighter as well,” Steen told FreightWaves. “In addition to the performance characteristics, early access to the platform is also very important to us.”
The A350F is designed to carry a payload of up to 111 metric tons and fly up to 4,700 nautical miles. Powered by the latest Rolls-Royce Trent XWB-97 engines, the aircraft will reduce fuel consumption and carbon emissions of up to 40% when compared to previous generation aircraft with a similar payload-range capability, according to Airbus.
Airbus’ firm order book for the cargo variant of the popular A350 passenger jet now stands at 102 units from 14 airlines. Boeing has received more than 50 commitments for its next-generation freighter, the 777-8. Airbus plans to begin flight tests in October, with commercial deliveries expected to begin in late 2027 after the aircraft is certified by regulators.
Boeing is pushing for commercial release of the 777-8 in 2028, but the plane is already years behind schedule and ongoing certification delays could push production into 2029 or beyond.
Atlas Air also owns airline Polar Air Cargo and Titan Aviation Leasing.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Write to Eric Kulisch at ekulisch@freightwaves.com.
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