The cargo airline subsidiary of Mediterranean Shipping Co., the largest ocean container line in the world, on Monday ordered five next-generation 777-8 freighter aircraft from Boeing (NYSE: BA) while Embraer received a firm order for 20 passenger-to-freighter conversions of its E190 regional jet, the manufacturers announced at the Farnborough International Airshow in England.
MSC Air Cargo launched operations in 2022 with Atlas Air, which operates four branded Boeing 777-200 freighters around the world on its behalf, and now has seven 777 aircraft in its fleet. MSC Air Cargo is essentially an air logistics company that outsources flying to authorized air carriers, but indirectly operates the other three aircraft through a subsidiary it established in 2024 after acquiring a small cargo airline based in Italy.
“With this order, we are investing in the long-term future of MSC Air Cargo and in the customers we serve,” said CEO Jannie Davel. “The 777-8 Freighter gives us the efficiency, range and capacity to serve our customers reliably for years to come, while advancing our commitment to more sustainable operations. It is the right aircraft for the next stage of our growth.”
The MSC Air Cargo investment will provide a boost to intercontinental air cargo capacity, which is expected to tail off in the second half of the decade as older airframes reach the end of their useful life at a time when production from manufacturers and conversion shops is constrained by shortages of skilled labor, reliability issues with engine manufacturers, and geopolitical disruptions.
The MSC order follows one from China Southern Airlines in late June for five 777-8 freighters. Boeing has booked more than 80 orders for the 777-8 Freighter and MSC Air Cargo is the third Europe-based air cargo operator to order the airplane. Boeing has said it plans to begin customer deliveries in 2028 after several years of development delays. The news release did not mention when MSC Air Cargo would receive its first aircraft.
Why It Matters: The industry needs more large cargo jets as older aircraft are retired.
Rival Airbus has tallied 103 orders from 14 customers for its next-generation widebody freighter, which is in the pre-mass production assembly. In the spring, the airframer completed manufacturing and installation of the main-deck cargo door on the first test aircraft for the all-new A350 freighter. Airbus is shooting for first commercial delivery in late 2027.
On Sunday, Boeing released its 20-year outlook for commercial aircraft, which was virtually unchanged from last year’s projection for freighter aircraft. Boeing said the market will require deliveries of 2,930 factory-built and converted freighters through 2045 to meet growth and replacement needs, with new large widebody freighters representing 23% of the total.
The 777-8 can carry nearly as much cargo as a 747-400, but has 30% improved fuel efficiency, 25% better operating costs per ton and up to a 60% smaller area for noise impact on the ground, according to Boeing.
Embraer deal
Meanwhile, Brazilian aerospace company Embraer announced an agreement with lessor Azorra for the purchase of 20 E190 converted freighters, with options for an additional 10 aircraft. Azorra has many E190s in its portfolio and is essentially ordering production slots to modify the planes with Embraer’s retrofit kit.
The E190 is a small narrowbody jet that slots between the standard Boeing 737 family of converted freighters and large turboprop aircraft. Embraer is pitching the plane as well-suited for e-commerce transport because it is sized to shuttle back and forth between hubs and secondary and tertiary markets and is more efficient than older aircraft. It has a main-deck payload of 23,600 pounds. It’s unclear to what extent operators will use underfloor capacity.
Embraer says its E-Jets have 35% greater volume capacity and three times the range of large turboprop freighters, and up to 30% lower operating costs than older, less-efficient narrowbody jets. The company’s conversion design has been approved by civil aviation authorities in Europe, the U.S. and Brazil.
The E-freighter made its commercial debut in March with Malta-based Bridges Air Cargo.
The agreement marks Azorra’s entry into the freighter leasing market. The company plans to market the aircraft in Latin America, Southeast Asia, the Middle East and Africa.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Write to Eric Kulisch at ekulisch@freightwaves.com.
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