Etihad Airways becomes latest airline to back A350 freighter

Etihad Airways signed an outline deal for seven Airbus SE A350 freighters, adding momentum to the sales campaign for the new cargo jet.

The agreement with the Gulf carrier was announced at the Singapore Airshow on Wednesday, after Singapore Airlines firmed up its A350F order earlier in the day. The contracts add to commitments from Air Lease Corp., French shipping firm CMA CGM Group and Air France-KLM for the Airbus wide-body model. 

The planes will be added to Etihad’s existing fleet of five A350-1000 passenger jets, according to the statement. The order involves swapping some existing aircraft commitments, according to a person familiar with the matter, who asked not to be named discussing details that weren’t announced. 

The A350F and a cargo version of Boeing Co.’s coming 777X have given the rival planemakers a tool to shore up wide-body demand after the coronavirus pandemic accelerated a shift away from larger passenger jets. Both manufacturers have allowed customers to convert existing jetliner commitments to the new freighters. 

In 2019, Etihad reduced a large order for A350 passenger jets to 20 aircraft as part of a restructuring. While it is due to receive 15 more, Chief Executive Officer Tony Douglas has said the company plans to operate just 12 A350s, including those already taken. 

The state-owned airline, based in Abu Dhabi, also has an order for 26 A321neos.

Etihad had no immediate response to requests for comment on the order structure. 

The A350F will play a key role in Etihad’s long-term cargo strategy and help it meet emission reduction targets, Douglas said in the statement. Freighters are becoming increasingly important to airlines, which have bolstered cargo operations to make money as long-haul travel languishes.

Airbus is relying on the lower emissions as a selling point for the A350F as it attempts to break into a segment of the market long dominated by Boeing. Some Boeing models are set to fall foul of changes to emissions standards which will come into force later this decade, though the U.S. planemaker is seeking an exemption.

While the letter of intent is contingent on a final contract, securing Etihad as an A350F customer will give Airbus some consolation after Qatar Airways chose Boeing for a blockbuster 777X freighter deal. 

Airbus, based in Toulouse, France, is locked in a legal battle with Qatar Airways over paint quality on the composite-shelled A350.