Airbus A350F Order Cancelled

Air Lease Corporation has confirmed it is cancelling orders for the upcoming Airbus A350F.

The leading aircraft lessor confirmed the news on a quarterly earnings call, explaining its decision to back away from such reliance on the freighter.

As a key part of the A350F launch, Air Lease Corporation committed to the aircraft at the 2021 Dubai Airshow, including 111 new planes from the planemaker.

That major deal included Airbus A330neos and A321XLR jets, including the base-model A321neo, as part of efforts to improve airline customers’ fleets going forward.

However, the order for seven of the A350Fs was seemingly scrapped after it was revealed the lessor was moving ahead with a process to remove the freighters from its backlog.

The revelation coming during the planemaker’s June orders and deliveries, with the change of seven A350 Freighters axed from the existing backlog being reflected here.

A350F Order Cut Explained

Air Lease Corporation says that the seven aircraft have now been cancelled, and that doesn’t change the fact that the upcoming A350F is a fantastic aircraft and will be a top-of-the-line freighter option moving forward.

However, over the past almost four years, a lot has changed; the industry is not quite what it once was, and Air Lease Corporation’s strategy has shifted as well, with greater emphasis on passenger flying.

The lessor said in its quarterly earnings call that, going forward, it wants to stick to supporting passenger airlines rather than venturing into new freighters, which this purchase would’ve included.

Additionally, it’s highlighted that the majority of the A350F order is more than a year later, after Airbus confirmed what was expected for the program.

The ability to axe the upcoming freighter from the backlog also frees up more than USD 1 billion in forward CapEx commitments. It means that capital has been made available for other possible alternatives.

Air Lease Corporation says they have and will continue to be disciplined buyers of new commercial aircraft, but for now, the pricing of these new planes to order is not deemed attractive; thus, negotiations need to take place.

Much of the CapEx and the impact of the cancellation sit around 2027 and 2028, which was when deliveries for the new jet were expected to take place, with the delays accounted for.

The Airbus A350F

For Airbus, despite this recent order cancellation, the rise of the A350F has been more than apparent, with the upcoming jet being a hit with many global freight companies.

Airbus would acknowledge it has been in the shadow of Boeing for too long in the freighter market, with its counterpart controlling a large portion of the market share without any disruption.

However, Airbus now aims to be a force for change and shift the dialogue surrounding the sector by introducing its A350F, which will rival the upcoming Boeing 777-8F.

The A350F will carry up to 111 tonnes and comes with a range of 8,700 km. Additionally, the aircraft, equipped with Rolls-Royce Trent XWB-97s, will offer a 40% reduction in fuel consumption and CO2 emissions.

Already, this is a freighter that has attracted a lot of interest from global freighter companies, and even with the most recent order cancellation, is not expected to hinder anything moving forward.

Yes, analysts argue that the further delay to the program may disrupt some freighter companies’ future planning with the jet; however, there is still strong optimism that as the years progress, more and more freight providers will need to renew their fleet and will be looking to this as a next-generation option.

Historically, freighter aircraft will also typically fly longer, meaning the necessity for their replacement internally at businesses may not always be as high.