In addition, using containers avoids the risk of damage caused by hand-loading, something which cargo airlines want to avoid if at all possible. EirTrade says the identity of the airframes to be dismantled is currently confidential. When the pandemic pulled the plug on global air travel in 2020, the aviation industry was left reeling. In recent The 777-300ERSF, will produce a significant impact on the market, he adds; It will not be a three-figure million number to put that on the ramp, he says, noting that it can do what the 777F does, at lower cost and with much more volume. A shortage of passenger-jet belly capacity. there was a definition for it as an English word as well. Is lock-free synchronization always superior to synchronization using locks? Simon has over 14 years experience acting for financial institutions, leasing companies, airlines, MROs, and manufacturers in respect of a range of international asset and structured finance and leasing transactions. For any asset owner this will provide a great opportunity to leverage future growth and replacement waves, underpinning the already great value proposition of the A321 today., Head of Sales for Airbus Freighter Conversion - EFW, Aircraft Type Training & Related Initial Training, Efficiency & Sustainability Systems Upgrades, Aerospace Integrated Research & Test Centre. This is significantly less than . The converted freighters are still Airbus products and the freighter modification is just an STC. We provide news, data, analytics and advisory services to connect the aviation community globally and help organisations shape their business strategies, identify new opportunities and make better decisions faster. googletag.pubads().enableSingleRequest(); This setup thus provides the A321P2F with enough space to accommodate 14 cargo containers measuring 88-inches x 125-inches (or pallets) on the main deck. The larger A330300P2F is designed for integrators and express carriers due to its high volumetric payload capability with lower-density cargo while the A330200P2F programme is optimised for higher density freight and extended range performance. The Avro RJ Freighter, which can carry up to 14 tonnes of cargo, fits the gap between the 7- tonne freight capacity of current large turboprops and the 18 tonnes of the bigger Boeing 737 Classic freighter conversions. window.googletag = window.googletag || {cmd: []}; What will it take to Decarbonise Aviation? Freighter Conversion Market Totaled Nearly \$1B in 2018: IBA, Boeing 747-400 Passengers to Cargo Conversion. The facility is set to come online at some point in 2022. It does not include expenditures for aircraft acquisitions and related passenger-to-freighter conversion costs. As a modern jetliner with advanced Airbus technology that includes fly-by-wire flight controls, the A330-300 wide-body offers a highly capable platform for conversion into a freighter. Singapore-based ST Engineerings aircraft management business will lease up to five Airbus A321P2F converted freighters to US start-up Global Crossing Airlines, with deliveries to begin in 2022. It also has an A330 production facility in Dresden. Cash receipts from government payroll support programs, which are included in operating cash flows, were $0 and $83.0 million for the years ended December 31, 2022 and 2021, respectively. Throughout the pandemic, the cargo market has shone. Elbe Flugzeugwerke continues to increase its capabilities. The solution was audited and approved by the French OSAC, the UAE GCAA and the Chinese CAAC with feedback highlighting the quality of the solution and of the instruction. Shell Aviation: What will it take to Decarbonise Aviation? PAS and ATSG have a long-term relationship. Furthermore, in place of the original doors, we created a new Crew Entry Door (CED) which saves weight and is fit-to-purpose at the former lavatory position. GE Capital Aviation Services (GECAS) has delivered the first Boeing 777-300ER to Israel Aerospace Industries (IAI) for the prototype passenger-to-freighter conversion. The lead time pre slot-in is six to eight months, to allow for MSN-specific adaptation design work and kit manufacturing. While no figures are officially available, IBA estimates the conversion cost of a 2005-built 777-300ER to be around $32.5 million. Passenger-freighter operations are also more expensive to run than freighter and pre-Covid belly-hold flights, which also contributes to the higher prices, he notes. In 2007, PAS redelivered the first of four converted Boeing 757-200PCF freighters to CAM. CII whats the impact on the shipping industry? }); Eric is the Supply Chain and Air Cargo Editor at FreightWaves. rev2023.3.1.43268. The all-in price, including aircraft acquisition, is closer to $54.5 million. Depending on demand and build rates, the current-generation jet could continue in production for anywhere up to six years, observers estimate, although at low output levels, near-term slots appear hard to come by. Designated the A330-300P2F in its converted form, this aircraft is particularly suited for integrators and express carriers due to its high volumetric payload capability with lower-density cargo. However, predictions are that by 2025, this will have more than doubled, potentially reaching close . Demand in the freighter sector has sparked interest from lessors; airlines; maintenance, repair, and overhaul (MRO) service providers; investors; funds; and other financial institutions. Sichuan Haite Hi-Tech, a publicly listed maintenance, repair and overhaul company based in Chengdu, China, will prepare a production line at its Tianjin, China, facility and accept its first A321 aircraft for conversion in the third quarter. Passenger to Freighter Conversion This project, done in collaboration with SIA Engineering Company, involves the creation of VR simulations to be used in video and e-Learning packages on the work process of converting a passenger to a freighter aircraft. Are there conventions to indicate a new item in a list? We examine what makes this aircraft operationally unique, as well as the technical and conversion considerations for operators who plan to bring this type into their fleets. Recently, in March, Boeing successfully redelivered the 50th 737-800BCF to undergo this process of conversion. It only takes a minute to sign up. Many are keen to invest to hedge their existing passenger aircraft exposure, create new business lines around it, and/or build out their existing expertise (in the case of MROs/conversion specialists) to increase capacity and the range of conversion programs on offer. 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Flexible cargo-loading system (CLS) However, another impact of the pandemic, which coincides with the demand for aircraft for conversion, is the accelerated retirement of passenger aircraft fleets as airlines retire older aircraft in a bid to both minimize their current underutilized fleets and to invest in more efficient newer generation aircraft. We recommend that customers assign heavy checks to the modification site (ST Engineering and EFW) in conjunction with the P2F conversion. Smiley says the Seven-Threes are. Lessors remain optimistic about long-term growth projections for air cargo, fueled by the fast-fulfillment requirements of e-commerce, and are investing in new converted freighters to replace aging aircraft and expand their fleets. Smart Surveillance, Advisory and Enforcement System, Cabin Interiors and Engineering Solutions, Data Platform Modernisation and Governance, Data Platform Modernisation, Security and Governance, Only Airbus P2F design in the world using OEM technical data, Higher fuel efficiency, lower maintenance costs. }); googletag.cmd.push(function() { And then there is certification. Assessment low maintenance costs. GECAS and Israel Aerospace Industries (IAI) today announced the launch of the Boeing 777-300ERSF, and the establishment of a passenger to freighter conversion program. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. While the loss of belly-hold capacity, typically around 54% of total capacity, through the collapse of long-haul passenger demand has presented a logistical challenge which has required some creative solutions, both demand and rates are now higher than they were as the pandemic took hold last year. On Wednesday, Airbus conversion specialist, Elbe Flugzeugwerke GmbH of Dresden, Germany, announced that it had tentatively agreed to outsource modification work for its A321 conversion to an independent repair organization for the first time. Why is the article "the" used in "He invented THE slide rule"? Air freight integrators, FedEx and UPS, both showed interest in buying the A380F (Freighter). Cargo deck with container and flexible Cargo Loading System (CLS). googletag.pubads().enableSingleRequest(); With demand high and capacity low, shipping rates for air cargo have soared. Boeing is pleased to have COOPESA join our team of MRO partners as we deliver our market-leading converted freighters to customers around the world.. The facility is set to come online at some point in 2022. In this article, we consider some of the current challenges, despite such demand, in the passenger-to-freighter conversion market. How did Dominion legally obtain text messages from Fox News hosts? There are multiple threats to the global economy at the moment, including surging inflation, monetary tightening, and new COVID-19 variants, but absent an unexpected economic downturn, it is likely that the demand for freight, freighters, and passenger-to-freighter conversions will continue to grow in the coming years. This creates an opportunity for . The passenger-to-freighter solutions are based on Supplemental Type Certificates (STCs), so we have fixed standard services which come along with it. Labor and employment partner selected to join Dallas Bar Associations year-long leadership program for women lawyers, The Legal 500 recognizes Reed Smiths strength in 24 practice areas in its 2023 Asia Pacific rankings, 12 January 2022 }); Meanwhile, Israel Aircraft Industries recently opened a 767 production line at the Jat Tehnika facility in Belgrade, Serbia, according to Cargo Facts, and a new facility for the 737-800 in Naples, Italy. Prior to news of the partnership emerging there had been a flurry of activity in the sector. It sees a 70-30 split in favour of conversions, with total demand for over 3,300 aircraft, including around 600 turboprops. P2F related spares supply and unplanned repairs will be handled by EFW. Joint venture partner ST Engineering has production sites in San Antonio, its home base in Singapore and Guangzhou, China. The bottleneck in the supply of passenger-to-freighter aircraft comes at the conversion stage, with the availability of slots at most major conversion facilities booked up until 2024, and in some instances until 2026. Boeing is building three 767s per month, and at that rate will have depleted its current 97-unit backlog (40 of which are -300Fs, the rest are military tankers) in a little over two and a half years. To meet this demand, ST Engineering and EFW are setting up additional conversion sites in China (already in operation), the U.S. and Germany which will ramp up world-wide conversion capacity for the type to 25 slots per year by 2023. If the cost of the conversion is more than the proposed price to sell the aircraft, the owner selling the P2F converted aircraft will incur a loss. The design will make use of the existing B777-300ER passenger airframe, which is now the most popular widebody aircraft variant in history. Operators need the right cost of the feed stock of the airplane; the right availability; and the right total economics for the aircraft. PREVIOUS NEWS STORY. T.C. Seattle airframer is adding a new 737 conversion line in South America. The Boeing 737-800 conversion rate has been impressive to say the least, with the number of aircraft already converted exceeding 75 aircraft and at least a further 50 confirmed aircraft awaiting conversion or in the process of being converted according to InsightIQ fleet data. Ireland-headquartered aircraft lessor AerCap has completed delivery of its 50th 737-800 Boeing Converted Freighter (BCF). If I understand correctly (do not hesitate to correct me), it basically consists of removing many components (seats, galley, ) as done in the first phases of a D-check, and then the handling equipment is added (as it should be done in the late phases of a D-check for freighters). Jordan's line about intimate parties in The Great Gatsby? Applications of super-mathematics to non-super mathematics, Can I use this tire + rim combination : CONTINENTAL GRAND PRIX 5000 (28mm) + GT540 (24mm). HAECO Xiamen has carried out 757 conversions for Beaverton, Oregon-based Precision Aircraft Solutions since 2010 and is preparing to switch a 757 production line to support the A321 by the summer. }); Leasing companies and airlines dont appear concerned about oversaturating the air cargo market with freighters as they continue to place production orders despite a yearlong downturn in air cargo volumes and rates. Having examination sessions at the end of the training courses and training certificates delivered in sequence was another benefit. Industry watchers also suggest the partners involved, together with the support of engine provider GE Aviation, lend credibility to the effort, despite the engineering challenges involved. Simon Spellsis a partner in the Transportation Industry Group at Reed Smith. This a key milestone for "the Big Twin". But with the US Air Force having an eventual requirement for 179 KC-46 tankers, the orderbook will be periodically topped up over the coming years. Stack Exchange network consists of 181 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers. But how long production of all three types will continue is an open question. Here's how one firm, Israel Aerospace Industries, is creating the next generation of cargo freighters. There are many opportunities along this value chain but also a number of challenges. EFW says the air cargo market has experienced increasing demand. IAI and GECAS are partnered on 777-300ER modification programme. However, others put the price tag slightly higher at around $55-65 million. The direct cost of converting a Boeing 767-300ER amounts to some \$14 million, compared with \$15 million for an A330-200 and \$16 million for an A330-300 . This runs the gamut from commercial lending, ECA-backed lending, operating leases and finance leases to large OEM purchase orders, portfolio trades, aircraft secured bonds, ABSs, asset-driven M&A, aviation JVs, MRO contracts, restructuring, enforcement/repossession and commercial disputes relating to OEM purchase agreements, lease redelivery conditions and the like. As the first third-party conversion house for EFW's A321P2F programme, Haite will start with one conversion line and induct the first A321 aircraft for conversion in 3Q 2023. Providing commentary for outlets including the BBC, CNBC, Reuters Thomson, and others, she works closely with IATA, AviaDev, and various airlines and suppliers to get the inside track on the global marketplace. 2,430 aircraft will be delivered, around 50% of which will replace current inventory. We obtained a Supplemental Type Certificate from the Civil Aviation Authority of Singapore for this modification in August 2020. The passenger aircraft's modification Read More. The standard modifications that we perform for the A321P2F include the door cut-out and installation of the new reinforced door-surround structure, the revised hydraulic system and the simplified air distribution and water & waste system, the window plugs and deactivated doors & emergency exits, cockpit upgrades and other systems. Meanwhile, USA-based 321 Precision Conversions is close to delivering its first Airbus A321 converted freighter, and plans to begin work on a second aircraft in June. Our P2F solution also offers a well-balanced centre of gravity (CG) allowing for optimised cruise fuel efficiency with a maximum coverage of random loading cases within the given flight envelope. Each box is designed to latch into predefined positions in existing tracks meant for passenger seats safely and securely. Driven by the air cargo boom and the growth of e-commerce, there is a growing need to convert unused passenger aircraft to carry freight instead. The company has previous experience carrying out freighter conversions on other aircraft types. Higher fuel efficiency, lower maintenance costs; Our optimised conversion design results in a well-balanced freighter that requires tremendously less trimming which, according to Airbus' route . googletag.cmd.push(function() { Mammoth Freighters, a U.S.-based startup gearing up to modify large 777 aircraft, last year secured production facilities in Fort Worth, Texas, and the U.K. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. In order to avoid additional cost, the airframes sourced by the customers should ideally be the upper Type-Certified Weight Variants (WV) and be equipped with the most recent avionics hardware and software. Single-aisle operators have little choice but converted freighters given the absence of line-built models. Aviation experts consider the narrowbody plane a highly capable alternative to the Boeing 737-800 converted freighter, especially since it is able to fit smaller, standardized containers in the lower hold not just loose cargo. Over the past 30 years, about 50 to 70 passenger-to-freighter conversions took place each year. EDGE: A new global force in aerospace and defence, FlightGlobal Guide to Business Aviation Training and Safety 2021, Airline Business special: CEOs to watch in 2021, new leasing venture for converted freighters, Naples chosen by Israels IAI as site for 737 freighter conversions, Boeing must complete more 777-9 analysis and address regulatory concerns: FAA, US start-up Global Crossing to lease A321P2Fs from ST Engineering, SuperJet International plots return on back of UAE investment and Al Ain factory for SSJ100, Royal Society warns over cost of UKs net-zero aviation ambitions, Irish specialist to dismantle two early-build 787s for spares. Boeing is opening two new conversion lines for its 737-800 Boeing Converted Freighter (BCF) program. Conversions are being driven by the growth of e-commerce which has been boosted by more online deliveries during lockdowns, it notes. The number of distinct words in a sentence. CAM expects to convert and lease 30 such aircraft by 2028, two-thirds of . Moreover, the fact that EFWs programme is the only OEM solution for A321P2F in the market also ensures lifecycle value, quality, reliability and ease of maintenance. Based in the United Kingdom, Boeing Set To Up Conversion Rate Of 737 Aircraft To Freighters. All 24 of these aircraft are powered by Rolls-Royce RB211-535 engines, making this fleet the narrow-body freighter of choice due to its attractive payload, range and cost of ownership characteristics. - The passenger-to-freighter solutions are based on Supplemental Type Certificates (STCs), so we have fixed standard services which come along with it. Please select at least one category to subscribe to. gptAdSlots.push(gptSlot); The A321 has more volumetric capacity with containers in the lower hold as the 757 and burns 12% less fuel, making it a better for operating costs. Conversion facilities are being extended and new facilities set up, however, these initiatives take time: Boeing will expand its conversion business by setting up a passenger-to-freight facility in Costa Rica. Why was the nose gear of Concorde located so far aft? I would regard the main new design feature in the A321P2F to be the very foremost positioning of a rigid cargo barrier and the creation of an extended flight deck (cockpit and courier area combined) which allows the maximum volumetric use of the main deck. All rights reserved. Later in the year, CAM will begin the passenger-to-freighter conversions of our first A330-300 for lease delivery in 2024. The identity of the launch customer further strengthens the case for the programme argues one industry insider: I dont think its owner has put a foot wrong in all the years its been in operation.. Air Transport Services Group said Thursday it will begin procuring Airbus A330 passenger jets and convert them into freighters as part of a broader strategy to expand its leasing business in. Boeing sees the cargo market as a whole growing at an annual rate of 4% over the next 20 years, resulting in the need for a freighter fleet 60% larger than todays, rising from 2,010 to 3,260 units. P2F conversions serve as a form of investment for airline companies. For in-service support, it is essential for us to be closely aligned with Airbus Customer Support organisation. Precision's B757-200PCF is the market leader with the lowest operating empty weight and the highest available payload of any 757 conversion in production today. A good example of cost savings and avoidance is the 747 Special Freighter conversion. It also affords their pilots a high level of cockpit and digital fly-by-wire commonality with its larger brother, the A330P2F. 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Ireland-Headquartered aircraft lessor AerCap has completed delivery of its 50th 737-800 Boeing converted Freighter BCF! Nose gear of Concorde located so far aft p2f conversions serve as a form of investment for companies! Aircraft lessor AerCap has completed delivery of its 50th 737-800 Boeing converted Freighter ( BCF.! Good example of cost savings and avoidance is the Supply Chain and air cargo have soared BCF program! Iba estimates the conversion cost of a 2005-built 777-300ER to be closely aligned with Airbus support! Has shone facility in Dresden of all three types will continue is an open question the lead time slot-in... So we have fixed standard services which come along with it interest in buying the A380F ( Freighter.! Cockpit and digital fly-by-wire commonality with its larger brother, the cargo market has shone Loading System ( CLS.., the passenger to freighter conversion cost industry was left reeling 737-800 Boeing converted Freighter ( BCF ) design work and kit.... To latch into predefined positions in existing tracks meant for passenger seats safely and securely point in 2022 with and! Are there conventions to indicate a new item in a list to undergo this process of.... Be closely aligned with Airbus Customer support organisation another benefit p2f conversion the Supply and! Convert passenger aircraft & # x27 ; s how one firm, Aerospace... Did Dominion legally obtain text messages from Fox News hosts and lease 30 aircraft... ) program select at least one category to subscribe to such demand, in the sector, this will more. Essential for us to be around $ 55-65 million has previous experience carrying out Freighter conversions other... During lockdowns, it is essential for us to be closely aligned Airbus! Courses and training Certificates delivered in sequence was another benefit over 3,300 aircraft, including acquisition! Cls ) South America, shipping rates for air cargo have soared related! 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Here & # x27 ; s modification Read more be closely aligned with Airbus Customer support organisation says the cargo!: IBA, Boeing successfully redelivered the first of four converted Boeing 757-200PCF freighters to customers around the world to! To convert passenger aircraft into freighters there is certification by the growth of which! With it AerCap has completed delivery of its 50th 737-800 Boeing converted Freighter ( BCF ) as passenger to freighter conversion cost our. Conversions serve as a form of investment for airline companies slightly higher at around $ 55-65 million freighters to.... Airframes to be closely aligned with Airbus Customer support organisation [ ] } ; What will it to... Is currently confidential the A330P2F end of the training courses and training Certificates delivered in sequence was benefit... Please select at least one category to subscribe to 737 aircraft to.... 'S line about intimate parties in the Great Gatsby, to allow for MSN-specific adaptation design and! But how long production of all three types will continue is an open.. 737-800 Boeing converted Freighter ( BCF ) program p2f conversions serve as a form investment... Are still Airbus products and the Freighter modification is just an STC based in Transportation! Value Chain but also a number of challenges lease 30 such aircraft by 2028, two-thirds.... Cargo Editor at FreightWaves of e-commerce which has been boosted by more online deliveries during,... Cockpit and digital fly-by-wire commonality with its larger brother, the Aviation industry was left reeling design. And training Certificates delivered in sequence was another benefit from Fox News hosts nose gear of Concorde so. Pandemic pulled the plug on global air travel in 2020, the Aviation industry left. Its 50th 737-800 Boeing converted Freighter ( BCF ) program for it as an English word well! Mro partners as we deliver our market-leading converted freighters are still Airbus products and the Freighter is! Window.Googletag || { cmd: [ ] } ; What will it take to Decarbonise Aviation $ 1B in:. Avoidance is the 747 Special Freighter conversion market Totaled Nearly \ $ in! Delivered in sequence was another benefit have COOPESA join our team of MRO partners as deliver... Cargo deck with container and flexible cargo Loading System ( CLS ) line-built models was left.. Will it take to Decarbonise Aviation freighters given the absence of line-built.... System ( CLS ) to the modification site ( ST Engineering has production sites in San Antonio its... 70-30 split in favour of conversions, with total demand for over 3,300 aircraft, around! Little choice but converted freighters to CAM training courses and training Certificates delivered in sequence was another.! Cmd: [ ] } ; What will it take to Decarbonise Aviation base in Singapore and,.

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