Airbus upbeat on freighter sales, plays down supply chain fears

A emblem of Airbus is seen on the entrance of its manufacturing facility in Blagnac close to Toulouse, France, July 2, 2020. REUTERS/Benoit Tessier

SINGAPORE, Feb 14 (Reuters) – Airbus (AIR.PA) voiced optimism on Monday about gross sales of a brand new A350 freighter after Boeing (BA.N) launched a competing cargo model of its future 777X jetliner and stated it was doing all the things attainable to shore up fragile international provide chains.

Airbus launched the freighter model of its A350 wide-body jet final 12 months to handle rising air cargo demand and penetrate a worthwhile a part of the jet market dominated by Boeing, which hit again with a 777X freighter launch order from Qatar Airways.

“Sure, you possibly can count on to see extra orders for the A350 freighter,” Chief Industrial Officer Christian Scherer stated forward of the Singapore Airshow which runs from Feb. 15-18, however declined to elaborate.

Provisional clients for the A350 freighter embody Singapore Airways (SIAL.SI) which may verify a provisional order to coincide with this week’s air present, delegates stated.

The airline signed a tentative deal in December to purchase seven A350 freighters and change into its first main airline operator.

However the deal additionally entails dropping earlier orders for 15 A320neo jets and two A350-900 passenger variations. Each Airbus and Boeing have agreed to transform some passenger airplane orders in an effort to safe wins for his or her new twin-engined freighters.

Scherer declined touch upon a dispute with Qatar Airways which has led the Gulf provider to refuse to think about shopping for the A350 freighter and again Boeing’s 777X cargo model.

It has additionally positioned a provisional order for at the least 25 Boeing 737 MAX jets, after Airbus revoked an order for A321neos as a part of the identical dispute over floor injury to A350 jets.

Scherer performed down trade issues over provide chains when requested whether or not Russian titanium might be swept up in any tit-for-tat sanctions ensuing from tensions over Ukraine.

“Basically, we aren’t involved concerning the structural problem,” Scherer stated.

Business sources have stated Airbus and Boeing have elevated shares of the strategically necessary metallic, of which Russia is the biggest producer. learn extra

PRODUCTION PLANS

Requested whether or not broader provide chain issues may additionally hamper Airbus’ plans to extend jetliner manufacturing, he stated, “we’re doing all the things we are able to for that to not be the case.”

Boeing additionally indicated on Monday it was not involved about Russian titanium provides, however stated it was retaining an in depth watch on different pinch factors. learn extra

Issues over the Ukraine disaster hit European shares on Monday, with Airbus down 3% and main airways falling 6%.

Planemakers are gathering for Asia’s largest aerospace occasion, whose attendance has been hit by COVID-19 restrictions.

Airbus stated it had firmed up beforehand tentative orders for 20 A220 small jets from leasing firm Aviation Capital Group, a subsidiary of Tokyo Century Corp, and 28 A320neos from Kuwaiti provider Jazeera Airways.

Airways have been dashing to purchase such jets once more as some markets get well, although long-haul journey stays depressed.

Analysts say one exception has been China, which has been notably quiet as U.S.-China commerce tensions solid a pall over its demand for Boeing jets, spilling over to have an effect on demand for Airbus as planners prevented all politically delicate purchases.

Scherer famous the chance that China may miss out on obtainable airplanes as different airways fill the hole. Normally China accounts for a couple of quarter of world purchases.

“We’re nonetheless hopeful to have the ability to embody further transactions by Chinese language clients,” Scherer stated.

“However the pandemic disaster, we have continued to promote very efficiently…so there’s a variety of strain now on our buddies in China to return to the occasion or run the chance of seeing not sufficient capability to fulfill their wants. However I stay optimistic that China will come again to an extraordinary cycle.”

Airbus additionally hopes China will quickly certify its A220 jet.

Reporting by Chen Lin, writing by Tim Hepher; modifying by Tomasz Janowski and Bernadette Baum

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