Airbus Scraps A320 Freighter Conversions

Airbus is abandoning its A320 and A321 passenger-to-freighter (P2F) conversion program, saying demand for the airliner version means there is not adequate supply for a conversion program.

“Recent market developments, including the success of the upcoming A320NEO, have resulted in more demand for A320 passenger aircraft and less for freighter versions in this aircraft category. In addition, strongly growing passenger traffic results in high demand for used A320 family aircraft, thus reducing the amount of aircraft available for conversion,” Airbus says, adding that “against the backdrop of these market changes and the increasing pressure on the P2F business case, the partners have concluded to stop and freeze the P2F programme.”

Airbus was working with its sister-unit EADS EFW and Russia’s United Aircraft Corp. (UAC) and Irkut on the conversion program. As a result, the joint venture for the business, Airbus Freighter Conversion, has been terminated. Ownership of the joint ventuer was 32% EADS EFW, 18% Airbus, and 25% each for UAC and Irkut.

Work on one A320 prototype aircraft, provided by AerCap, was already underway, although series production had not, yet, been initiated. First flight of the aircraft was due this year.

AerCap had already had an agreement with Anglo-Swedish cargo airline West Atlantic to be the launch operator of the A320 P2F aircraft. The airline was to lease three aircraft starting next year, with options for four more.

Airbus would not disclose financial terms linked to the cancellation of the program, including any penalties owed to customers such as AerCap.

The move also is a setback for Airbus to expand its freighter activities. The aircraft maker has long-bemoaned that its cargo portfolio is far smaller than rival Boeing’s. However, the cancellation of the P2F initiative, along with the decision several years ago not to proceed with the A380 freighter, leaves Airbus with the A330-200F as its only active freighter product. The aircraft maker still signals the A380 freighter may be revived, and an A350 freighter is also in the long-term plan.