Cathay favouring Airbus for widely watched freighter deal – Canada Boosts

(Reuters) -Cathay Pacific Airways Ltd is leaning in direction of inserting an order for round six Airbus A350 freighters because the Hong Kong provider renews the oldest part of its fleet of devoted 747 cargo jets, trade sources mentioned.

If confirmed, the choice marks a bounce again for the Airbus wide-body freighter after Cathay earlier this 12 months appeared to favour the competing Boeing (NYSE:) 777-8F, earlier than suspending a choice for a number of months, mentioned the sources, talking on situation of anonymity to debate confidential issues.

Airbus and Boeing had no quick remark. Cathay was not instantly accessible for remark outdoors enterprise hours.

Cathay’s resolution on the place to put bets for the following part of its cargo improvement has been seen as a key take a look at for the 2 freighters as a result of the airline operates the underlying 777 and A350 passenger fashions.

Airbus and Boeing have been battling arduous for the enterprise of one of many world’s top-five freight airways, which has been evaluating the all-freight model of the long run Boeing 777X jet household with an upcoming cargo mannequin of the prevailing Airbus A350.

Cathay Pacific is the world’s fifth-largest air freight provider and the third-largest conventional freight airline behind Qatar Airways and Emirates when specialist categorical parcel carriers FedEx (NYSE:) and UPS are excluded, in accordance with newest accessible knowledge from the Worldwide Air Transport Affiliation.

Business sources have mentioned the competitors pointed to an preliminary buy of round half a dozen plane, price some $2 billion at listing costs earlier than conventional airline reductions.

Cathay Pacific instructed analysts in August it was freighters and “continuing to study various opportunities”.

On Friday, it instructed analysts cargo demand had softened however was “still much higher than pre-pandemic times”.