Summary
- The air cargo industry has experienced transformative changes up to now yr, with the pandemic impacting demand and the tip of production for the Boeing 747-8F being a major milestone.
- The competition between Boeing and Airbus to develop their next-generation widebody freighters, the 777-8F and A350F, is heating up as they aim to fill the gap left by the absence of the 747.
- Israel Aerospace Industries (IAI) has made progress in the event of its 777 passenger-to-freighter conversion program, joining other firms within the race to exchange the 747F. Nevertheless, the corporate faced security concerns that prevented its representatives from attending the Dubai Airshow.
The past 12 months have been transformative for the air cargo industry. For essentially the most part, the industry felt the constraints of the brand new normal after the pandemic; the whirlwind years of high demand had subsided as belly capability on passenger flights returned. Nevertheless, because the industry reached this latest normal, there have been quite a number of headlines that shaped air cargo in 2023.
Goodbye to the Queen
The largest news for air cargo in 2023 was actually a momentous occasion for the aviation industry on the entire, and it happened in the beginning of the yr when Atlas Air received the last-ever production 747-8F. The aircraft, with registration N863GT and serial number 67150, became the last that Boeing would produce of the legendary aircraft type. The delivery ceremony included tributes to the 747’s designer Joe Sutter and was celebrated as a high-water moment for the aviation industry.
After taking off from Cologne, Germany, UPS flight 214 flew for about two hours before starting its descent to Keflavik International Airport (KEF). Photo: Vincenzo Pace I Easy Flying
With advances in engine technology improving on power and efficiency, quad jets have change into increasingly conceptually redundant, losing favor to cheaper-to-operate twin jets just like the 777 and A350. While airlines are in a position to adjust their business model to account for the marginally smaller capacities of dual jets, the extra power and additional size of the 747 made the aircraft a super freighter.
The A350F vs 777-8F competition
While Boeing still has a large lead over Airbus within the freighter market, the tip of production of the Queen means there’s a crown on the bottom, and each side are fighting for it. As N863GT entered service with Atlas Air, each Boeing and Airbus are racing to develop their respective next-generation widebody freighters, the 777-8F and A350F, to fill what is anticipated to be a big vacuum left by the 747’s absence, even when that might be quite a while into the longer term.
While each the 777-8F and A350F programs received victories in 2022, for essentially the most part 2023 was not without headlines. Most recently, in a win for Airbus, 747-400F and -8F operator Cathay Pacific placed an order for six A350Fs. Additional wins for the A350F program this yr included Turkish Airlines’ most up-to-date order for 220 Airbus aircraft, including five A350Fs.
777F conversion program developments
Israel Aerospace Industries (IAI) conducted the primary flight of its 777-300ERSF converted freighter in March. The milestone became the primary flight of a brand new freighter aircraft type because the A320P2F in 2021. While Boeing and Airbus race to exchange the 747F, IAI joins Mammoth Freighters and Kansas Modification Center in a contest to transfer the success of the passenger Boeing 777 into the freighter market by developing a supplemental type certificate (STC) for a 777 passenger-to-freighter conversion.
IAI would go on to display its 777-300ERSF on the Dubai Airshow. Nevertheless, IAI representatives themselves were unable to attend the airshow resulting from security concerns.
Major market updates
The news for the cargo industry in 2023 was largely a results of the market finding a brand new equilibrium within the post-covid world, including quite a lot of cargo airlines facing financial setbacks. Financial setbacks pair with change in company leadership like effective wine and cheese. This included a change in Chief Executive Officer at ATSG. In November, the cargo airline and aircraft lessor group announced that Joe Hete would resume his duties as CEO, where he had served from 2003 until joining the corporate’s board of directors in 2020. The corporate had moreover named Mike Berger as its President earlier in 2023. While each Hete and Berger aren’t strangers to the corporate, the transitions signaled a transformative time for the corporate.
ATSG was not the one business within the cargo industry to face challenges or setbacks, but not all company news was negative in 2023. In a serious turnaround, Western Global Airlines announced its exit from Chapter 11 in December and maintained its fleet of 4 747Fs and 17 MD-11Fs, after originally filing for bankruptcy in August. While the corporate isn’t the largest of cargo airlines, its turnaround showed promise that perhaps higher days are ahead for the airline and industry.