SINGAPORE (Reuters) - Airbus SE said on Wednesday it has finalised a deal to sell seven A350 freighters to Singapore Airlines (SI:SIAL), in a deal that would make it the first airline to operate the new model.
Singapore Airlines had in December said it had signed a provisional agreement to buy the freighters.
"The order underscores the importance of the cargo market to the SIA Group," Goh Choon Phong, the airline's CEO, said in a statement. "These new-generation aircraft will substantially increase our operating efficiencies and reduce our fuel burn."
The new freighters will replace Singapore Airlines' own fleet of seven ageing Boeing (NYSE:BA) 747s.
The companies did not provide a value for the order, which was signed at the Singapore Airshow.
The deal allows the airline to swap part of the order for 15 A320neo jetliners and two A350-900 passenger versions that it had previously ordered from Airbus and remain to be delivered.
Those 17 planes had a list value of $2.3 billion when Airbus last published prices in 2018, roughly the same price as the estimated value of the freighters.