Air Canada Leases Surplus Boeing 767 Freighter Aircraft to Ethiopian Airlines: A Strategic Move

Analytics

Air Canada Leases Surplus Boeing 767 Freighter Aircraft to Ethiopian Airlines: A Strategic Move

Air Canada has taken a bold step by leasing two of its lightly used Boeing 767-300 freighter aircraft to Ethiopian Airlines, Africa’s largest and most dynamic air cargo carrier. Ethiopian Airlines, with a burgeoning air cargo market presence through its 17 dedicated freighters, reflects this significant development in its operational strategy.

The Boeing 767 cargo jets, factory-built and merely two years into operation, were part of Air Canada’s fleet. However, due to insufficient business to sustain them economically, they were withdrawn in the second quarter. For months, they underwent unspecified upgrades at a maintenance facility in Kansas City, Missouri, indicating Air Canada's plans to optimize its freight operations.

Ethiopian Airlines' Strategic Lease Acquisition

This recent leasing agreement by Ethiopian Airlines’ cargo division underscores its strategic growth focus, aligning with its ambitious plans for the airfreight market. Air Canada Cargo's Commercial Managing Director, Matthieu Casey, confirmed this move, though details on the lease duration remain undisclosed. Notably, Flightradar24 data showed one of these freighters departing from Kansas City and landing in Addis Ababa, marking the transit completion.

Ethiopian Airlines aims to enhance its cargo operations, targeting autonomy as a profit center. Currently boasting a fleet of 10 Boeing 777 long-haul freighters and more, this lease acquisition bolsters their operational capacity amidst logistical challenges, including factory delays and economic fluctuations.

Air Canada's Shift in Cargo Strategy

Air Canada’s initial venture into the freighter market was fueled by booming air cargo demands during the COVID-19 pandemic. However, market downturns led to strategic fleet adjustments, including scaling back from plans involving additional aircraft conversions and orders, such as canceling two 777-200 production freighters in September 2023. This fleet fine-tuning has focused on six converted 767-300 aircraft, optimizing routes predominantly across the Americas and Europe.

Despite Canada's limited population and competition from dominant local carriers like Cargojet, Air Canada Cargo emphasizes its strategic fit and network stability. “Our current operating fleet size of six freighters is a well-tailored and strategic fit to our overall network,” said Casey, highlighting the division’s continued regional and global growth ambitions.

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Conclusion

This partnership between Air Canada and Ethiopian Airlines reflects a calculated move amidst the evolving dynamics of global air cargo. As Ethiopian Airlines increases its freight capabilities, Air Canada focuses on maintaining an efficient fleet, both airlines strategically navigating the challenges and opportunities within the ever-expanding cargo market.

Explore more stories on air freight innovations and strategic alliances at firsteld.com.

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