Welcome to flightglobal.com. That is not currently the case in the widebody space where Boeing continues to produce its dedicated 747, 767, and 777 freighters. window.googletag = window.googletag || {cmd: []}; Converting a Boeing 777-300ER passenger aircraft into a freighter: GECAS - General Electric Capital Aviation Services, the finance arm of the conglomerate General Electric and Israel Aerospace Industries (IAI) has now passed the planned halfway phase of the Development Program for the 777-300ERSF. 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. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. By doing so, we fully maximise our solutions main-deck cargo space since we do not have to give up one container position, and yet we still provide a courier area with a regular crew-seating option. RELATED NEWS: The orders are heavily weighted toward the -300. 2,430 aircraft will be delivered, around 50% of which will replace current inventory. What are some tools or methods I can purchase to trace a water leak? EirTrade says the identity of the airframes to be dismantled is currently confidential. for interlining with smaller freighters such as the BAE146/AvroRJ). A340-300s are out of favor as passenger aircraft . Why are non-Western countries siding with China in the UN? }); 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. Ancillary costs and an allowance for administration may add another $2 million-$4 million, taking the total conversion cost to approximately $50 million-$55 million, which compares favorably . 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. The design will make use of the existing B777-300ER passenger airframe, which is now the most popular widebody aircraft variant in history. Thanks for contributing an answer to Aviation Stack Exchange! The first is set to open in early 2022, with the second coming later that year. 321 Precision, a joint venture that includes cargo leasing and airline services conglomerate Air Transport Services Group, also has production partners in the U.S. window.googletag = window.googletag || {cmd: []}; As such, there appears to be a demand/supply equilibrium currently in terms of aircraft available for conversion. For aircraft operators who wish to carry more cargo each flight without the hassle of modification, our cabin cargo box solution achieves maximum cargo volume and ensures ease of loading and unloading. Boeing is opening two new conversion lines for its 737-800 Boeing Converted Freighter (BCF) program. Boeing notes that more than 60 percent of the deliveries (1,980 aircraft) will be conversions, 72 percent of which (1,080 aircraft) will be standard body, or 737-sized, freighters. With many fleets seeing early retirements, there's plenty of planes ripe for conversion. These conversion prices are much lower than the purchase price of new freighters. googletag.enableServices(); 2023 Reed Smith LLP. 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. The average conversion cost for the Boeing 767-300ER is US$14.7 million, compared to US$18.4 million for the A330-300. It is available with specially designed blended winglets to further improve efficiency, and can travel up to 1,995 NM even with a full load. The aircraft will undergo modification by the EFW joint venture which is run by ST Engineering and Airbus. Stay informed:Sign up for ourdailyandweeklyaviation news digests. One-week Type Training approved courses such as A320 difference courses, but also recurrent training and structure courses, have since been deployed. Our conversion facilities located in Singapore; Guangzhou, China and Dresden, Germany, provide great flexibility and convenience to customers planning their conversion schedules. 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. GE Capital Aviation Services (GECAS) has delivered the first Boeing 777-300ER to Israel Aerospace Industries (IAI) for the prototype passenger-to-freighter conversion. Ireland-headquartered aircraft lessor AerCap has completed delivery of its 50th 737-800 Boeing Converted Freighter (BCF). Adding only $29 million for conversion and $5.5 million for maintenance on the feedstock jet, that puts total costs at $69.5-74.5 million for the converted jets. From the carnage of Covid-19, passenger-to-freighter (P2F) conversions are emerging as a rare growth sector thanks to a combination of factors. . In recent 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. Furthermore, access to the B737s lower-hold is constrained due to its smaller and inwards-opening doors. Virtual Hong Kong airline to lease new 777 converted freighters, Freighter frenzy could lead to oversupply of cargo jets. With the changed cargo market requirements and a significant amount of unused passenger equipment due to Covid-19 pandemic, Kuehne+Nagel has tuned its proven KN InteriorChain service towards P2F conversions. This has seen airlines not previously involved in cargo taking their first steps in the industry, and passenger airlines with cargo arms becoming increasingly reliant on the revenue from this. EFW has orders for more than 100 P2F conversions for the A330-200 and -300. lighter than the competition! Why is the article "the" used in "He invented THE slide rule"? 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. Examples: - Small: US$10-$12 million - Medium nnarrowbody: US$15-$20 million - Medium widebody: US$20-$30 million - Large: US$55-$65 million At these prices, further demand can be expected. By Dominic Perry2021-05-12T14:51:00+01:00. Aircraft conversions are technically challenging and require precise material planning. E-Jet Freighter - Rendering, Embraer. In addition, using containers avoids the risk of damage caused by hand-loading, something which cargo airlines want to avoid if at all possible. Site design / logo 2023 Stack Exchange Inc; user contributions licensed under CC BY-SA. The manufacturer is also highlighting the performance and economics. Between May 2020 and January 2021, a total of 30 converted 737-800 freighters were added to the global fleet. 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. Last year, the company finished 19 conversions of the A320/321 and the larger A330 family. How much does a Black Box Underwater Locator Beacon (ULB) cost? The 757 continues to dominate the larger narrowbody space, says IBA; an additional 20 examples are pending conversion having been retired from passenger roles, it says, adding to the 298 units in operation as freighters at February 2021. How much does it cost to lease a jetliner? Airbus A321s that have completed their operational service carrying passengers for airlines can soon have a second life as highly efficient freighters, converted through a programme involving ST Engineering and Airbus with their joint venture, Elbe Flugzeugwerke (EFW). 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. 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. 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.. Source: Freighter Conversion Market Totaled Nearly \$1B in 2018: IBA, ainonline.com 2018's average is 7-8 million USD per conversion. Please select at least one category to subscribe to. 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. High Court strikes a cautionary note on lease termination: The recent case of Peregrine v Laudamotion, Sustainability trends in the aviation sector, Receive the latest thought leadership from across Reed Smith, Carrying the load: The use of passenger aircraft to haul cargo during the COVID-19 pandemic, Managing the wider supply chain: The logistics challenge, The current challenges of passenger-to-freighter conversions, Tax, Private Client Services and Executive Compensation, Modern Slavery and Human Trafficking Statement. 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. 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. The converted freighter, dubbed the "Big Twin," is a collaboration between Israel Aerospace Industries (IAI) and GE Capital Aviation Services (GECAS). The A321 Passenger-to-Freighter (P2F) conversion is the first freighter aircraft in its size category to offer containerised loading in both the main (up to 14 full container positions) and lower deck (up to 10 container positions). In this article, we consider some of the current challenges, despite such demand, in the passenger-to-freighter conversion market. Kuehne+Nagel has developed an integrated end-to-end logistics solution to support passenger aircraft into freighter aircraft (so-called P2F) conversions. Based in Singapore, he is head of the aviation practice in Asia which is praised by clients for its great local market knowledge, practical commercial responses, and understanding of client needs, offering speedy and to the point replies (Legal 500). EFW's first ever A321P2F conversion, that flew in 2020. How much does a passenger-to-freighter conversion cost? Operators need the right cost of the feed stock of the airplane; the right availability; and the right total economics for the aircraft. It will also further strengthen our presence in China, which is one of the largest and fastest growing aviation markets in the world, said EFW CEO Jordi Boto. 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. Ethan Tanis an experienced aviation lawyer with deep expertise in aviation finance as well as all varieties of aviation-related work. It also has an A330 production facility in Dresden. In IBAs view, the 737 will continue as the mainstay of the smaller narrowbody market, with conversion activity shifting to the -800 as feedstock availability of earlier 737 Classics dries up. T.C. 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. Why was the nose gear of Concorde located so far aft? Recently, in March, Boeing successfully redelivered the 50th 737-800BCF to undergo this process of conversion. MathJax reference. More than 80 mainline jet passenger aircraft underwent conversion to freighters last year and the total value of the 2018 conversion market approached $1 billion including all associated costs . U.S.-based rival 321 Precision Conversions, which started later than EFW, has delivered a handful of A321 passenger-to-freighter conversions but expects to significantly ramp up production this year and is booked out into 2025, according to Sales Director Zachary Young. Some advantages of our A320/A321P2F solution include: In contrast to other solutions providers who rely on reverse engineering, our Airbus P2F programmes are developed using OEM technical data to convert passenger aircraft into well-optimised and reliable freighter workhorse. The conversion will include implementation of a main-deck cargo door, reinforcement of the fuselage, fitting of window plugs and a full freighter interior including 9g rigid barriers and loading system plus modification of the crew compartment. To learn more, see our tips on writing great answers. . 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. While no figures are officially available, IBA estimates the conversion cost of a 2005-built 777-300ER to be around $32.5 million. Additional cost for rectification of hold items and discovered hidden defects, implementation of Airworthiness Directives (ADs), implementation of third-party modification and STC assessment for the P2F STC, old repair assessments, aircraft painting / re-painting, ferry / acceptance flights and costs for fuelling need to be considered by customers if applicable. We also highlight the A320 Familys unique cargo belly hold (ie lower deck) which allows for mixed-fleet operation and interlining between Airbus single-aisle passenger aircraft and freighters, which is a significant operational and commercial advantage for airlines. Learn more about Stack Overflow the company, and our products. 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 does not include expenditures for aircraft acquisitions and related passenger-to-freighter conversion costs. Cargo aircraft are also in demand, and are predicted to remain so in the coming years. At the moment the market doesn't support it, but it could, in the future. EFW has secured new orders for converted A321. In principle all A321s can be converted to freighters. Kuehne+Nagel now offers a reliable end-to-end solution to manage conversions of retired passenger aircraft into a long-lasting freighter, so our customers can scale up their operations, reduce costs and boost cargo capacity. For instance, the EFW A321 P2F conversion programme was launched in 2015, with a launch order secured two years later. Thank you for your email. 4.2 Limitations 4.2.1 Acceptable used market price. googletag.defineSlot('/21776187881/FW_Super_Leaderboard', [[300, 50], [970, 90], [300, 100], [728, 90]], 'div-gpt-ad-1668097889433-0').defineSizeMapping(gptSizeMaps.banner2).addService(googletag.pubads()); The Weight Variants (WV) have an impact on the performance of freighters as they do on the passenger aircraft, because they determine the payload-range characteristic of the converted freighters in general. Overall air cargo rates remain at elevated levels because of stronger demand and an ongoing capacity crunch caused by a reduction in belly-hold services, says Damian Brett, editor of FlightGlobals sister publication Air Cargo News. 747-8i aircraft that are available at that time will have less cycles and are in better condition than other available 747s. To help address the increasing demand for airfreight and capacity, we also have innovative short-term solutions for passenger aircraft operators who wish to carry more cargo per flight. 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. I did not know that was a word. Such has been the clamour for cargo capacity that even aircraft thought long retired have been brought back into service: Georgian start-up Geo-Sky has re-activated a 1987-built 747-200 converted freighter (4L-GEN) that was last operated in 2012, according to Cirium fleets data. In short, WV standardisation can be part of specific agreements with customers if conversion feedstock is acquired from multiple sources. When the cost of the feedstock aircraft and other costs. Connect and share knowledge within a single location that is structured and easy to search. Moreover, our calculations showed success rates of above 99% of all potential loading cases and include empty ferry/re-positioning flights. Of course, growing demand for conversions pre-dates the pandemic, driven by the need of the big integrators express parcel carriers such as FedEx, DHL and UPS, and Amazon, to a degree to update their fleets of smaller freighters. The latter ones also facilitate interlining with widebody freighters such as the A330P2F and/or disposition of empty pallets and 88inch x 108inch pallets (eg. The A330 conversion programme is finally underway. COOPESA has demonstrated the technical expertise and commitment to quality and execution necessary to help us meet the growing customer demand for the 737-800BCF, including in the Americas. Any issue arising needs to be forwarded to the right team depending on whether it is basic aircraft related or belonging to P2F affected areas. Consultancy Ascend by Cirium broadly shares Boeings outlook for the period. ATSA agrees deal with De Havilland Canada for Dash 8-400 conversion. - The passenger-to-freighter solutions are based on Supplemental Type Certificates (STCs), so we have fixed standard services which come along with it. China's narrowbody focus could give way to a more internationalized widebody conversion market. Jens Steinhagen, director of Boeing freighter conversions, commented on the announcement saying. Over the past 10 years, the type of cargo flown by air has shifted to highervalue and more specialised products, claims Goater. You can learn more about the cookies we use here. To subscribe to this RSS feed, copy and paste this URL into your RSS reader. Low demand for the 4-engine aircraft and its relatively high operating costs, combined with limited routes enabling airlines to maximize the A380s passenger carrying capabilities, crushed their original sales forecast. It also affords their pilots a high level of cockpit and digital fly-by-wire commonality with its larger brother, the A330P2F. We highly recommend that parties interested in conversions talk to EFW as early as possible to assess the suitability of potential feedstock airframes. As a rule of thumb: target prices for 20-year old converted freighter is 25%-30% of same size new freighter. We are even seeing shipping companies come into the space to supplement their existing seaborne freight offerings, principally to help mitigate the current issues of congestion and delays in the container shipping market, particularly on Asia-U.S. routes where there are no land-based alternatives. ( BCF ) program 747-8i aircraft that passenger to freighter conversion cost available at that time will have less and! Havilland Canada for Dash 8-400 conversion been deployed does not include expenditures aircraft... 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Us $ 14.7 million, compared to US $ 14.7 million, compared to $! Freight transportation and supply chains but it could, in the UN EFW has orders more. Two years later more about the cookies we use here and other costs in short, WV standardisation can part! Conversions are emerging as a rule of thumb: target prices for 20-year old converted freighter ( BCF ) an... Could, in the widebody space where Boeing continues to produce its dedicated,... Ireland-Headquartered aircraft lessor AerCap has completed delivery of its 50th 737-800 Boeing converted freighter ( BCF program!

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