How much does it cost extra to fly with one additional passenger? Would the reflected sun's radiation melt ice in LEO? 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). Transforming a passenger airliner to a freighter seems to be common. Learn more. 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. 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. More in this A330-300/-200 P2F brochure (PDF). }); 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. Does With(NoLock) help with query performance? EFW has been producing the A321 aftermarket freighter for 2 1/2 years. 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 also has an A330 production facility in Dresden. How did Dominion legally obtain text messages from Fox News hosts? 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. The rise in passenger-to-freighter conversions is already starting to generate litigation. 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. Hong Kong Aircraft Engineering Co. Ltd. (HAECO) completed its first A321-200 converted freighter for 321 Precision Conversions at its Xiamen, China, facility in January. Lufthansa Group Moves Forward With Passenger-to-Freighter Conversions Lufthansa Technik, the MRO division of Lufthansa Group, obtained approval from the German Federal Aviation Authority for an Engineering Order Specific Tailsign for four Airbus A330-300 passenger aircraft belonging to Lufthansa. 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. San Diego, California, Wednesday October 16th, 2019. var gptSlot = googletag.defineSlot('/21776187881/FW-Responsive-Main_Content-Slot1', [[728, 90], [468, 60], [300, 100], [320, 50]], 'div-gpt-ad-b1-i-fw-ad-1').defineSizeMapping(gptSizeMaps.banner1).setCollapseEmptyDiv(true).addService(googletag.pubads()); . The box, which comes with wheels, is also small enough to fit through normal aircraft doors on narrow and widebody aircraft and is made from lightweight sandwich panels. Asking for help, clarification, or responding to other answers. Indeed, one of the strategies upderpinning the ST Engineering/Temasek venture is an intention to benefit from falling passenger aircraft values as the air transport crisis generates overcapacity pressure, enabling it to acquire feedstock. 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 . requires aircraft-specific adaptations to the standard design. CTKs have climbed consistently over the last 12 months, save for the annual post-Christmas slump. Boeing is this year cutting output to two aircraft per month, including an unknown number of 777Xs. 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. That is not currently the case in the widebody space where Boeing continues to produce its dedicated 747, 767, and 777 freighters. Boeing already undertakes this process at Boeing Shanghai Aviation Services (BSAS) in Shanghai, China; Guangzhou Aircraft Maintenance Engineering Company Limited (GAMECO) in Guangzhou, China; and Taikoo (Shandong) Aircraft Engineering Co. Ltd. (STAECO) in Jinan, China. The A330 conversion programme is finally underway. CII whats the impact on the shipping industry? How much does a passenger-to-freighter conversion cost? How much does the design, implementation, test and certification of a Passenger-to-Freighter Conversion cost? T.C. Boeing will expand its conversion business by setting up a passenger-to-freight facility in Costa Rica. In the vast majority of conversions, such heavy maintenance activities can be performed without having an impact on the normal conversion layover if they are carefully planned in advance and if there are no major findings. EFW is converting A320/321 and A330 aircraft to freighters. Over the last three decades, some 50 to 70 passenger-to-freighter conversions took place each year, aerospace consultancy AeroDynamic Advisory wrote in a LinkedIn post on March 3. 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.. Jordan's line about intimate parties in The Great Gatsby? 4.2 Limitations 4.2.1 Acceptable used market price. In turn, the new lavatory is located on the right-hand side. googletag.cmd.push(function() { To maximise the available main deck space the RCB is located at the most forward position possible, between the foremost left and right-hand doors (Doors 1 L/R). A340-300s are out of favor as passenger aircraft . For a swift yet reversible solution, we help passenger aircraft operators carry out modification to the aircraft cabin interiors for increased cargo carrying capacity. The Ancra-produced CLS chosen by EFW for the A321/A320P2F can support industry standard Unit Load Device (ULD) containers other than the 88inch x 125inch containers on option such as the 96inch x125inch containers. Managing Editor - Joanna has worked in publishing for more than a decade and is fast becoming a go-to source for commercial aviation analysis. Also, logistics companies and businesses realized the importance of air cargo during the pandemic, when supply chain delays were common, and now view freighters as a more reliable mode than passenger belly space. 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. Therefore we can provide indicative payload information only and up to values which will become final only after the re-delivery weighing. RV coach and starter batteries connect negative to chassis; how does energy from either batteries' + terminal know which battery to flow back to? Thanks for contributing an answer to Aviation Stack Exchange! What are some tools or methods I can purchase to trace a water leak? Latest freighter conversions/mro news. Why is the article "the" used in "He invented THE slide rule"? 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. Use MathJax to format equations. Seattle airframer is adding a new 737 conversion line in South America. 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. DHL Express has become the first operator to take delivery of the A330-300 Passenger-to-Freighter (P2F) converted aircraft from Elbe Flugzeugwerke (EFW). Aircraft conversions are technically challenging and require precise material planning. Plus, I learned a new word! The number of distinct words in a sentence. This is significantly less than . Participants should also bear in mind how scarce conversion slots are and the timeframe for the conversion, which can take around 120 days, so they can balance their own delivery risk with their designated operators and/or customer capacity requirements. 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. The fuselage is cut and reinforced to allow for the bigger door, Passenger environmental control systems are removed. Given the current constraints in conversion lines, this would typically involve significant advance planning and a period of ramp-up being built into any business plan. Loaded & Rolling (Enterprise Fleet News/Analysis). For more than 60 years AEI has provided advanced engineering solutions to aircraft owners and operators. Kalitta Air is set to be the launch operator of the aircraft, receiving its first example on lease from GECAS in 2023. All such deviations from the basic design need to be checked and incorporated into the scope. Smiley says the Seven-Threes are. T.C. Analysis from the AirInsight Group shows that 104 freighter conversionsvarying from widebody jets to regional turbopropsentered operators' fleets during the first half of 2021, suggesting . 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 . In short, WV standardisation can be part of specific agreements with customers if conversion feedstock is acquired from multiple sources. Joint venture partner ST Engineering has production sites in San Antonio, its home base in Singapore and Guangzhou, China. The pricing variations can be related to the freighter features (optional features) or to additional services such as MRO activities, other modifications or installation of SBs. However, others put the price tag slightly higher at around $55-65 million. 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 . Throughout the pandemic, the cargo market has shone. Overall, Airbus Global Market Forecast predicts that around 1,000 small freighter conversions will be required over the next 20 years to replace ageing fleets and cater for growth making for a solid market potential for the A321P2F. The cockpit door is also removed, allowing the creation of a merged cockpit + courier area, referred to as the Extended Flight Deck. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. In this article, we consider some of the current challenges, despite such demand, in the passenger-to-freighter conversion market. Operators need the right cost of the feed stock of the airplane; the right availability; and the right total economics for the aircraft. Air passenger traffic was cut off overnight and billions were wiped from industry revenues. The competing B737 freighter can only offer container positions on the main deck and bulk cargo on the lower holds. And in recent days, one of its freighter conversions caught people's attention, because it involved a rather young jet. 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. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. In the absence of new-build 747-8Fs and a lack of clarity on the 777F, operators in search of a suitable replacement for the 747-400F may well turn to P2F conversions, where price, availability and the high capacity of the -300ER are likely to make the IAI/GECAS product a compelling prospect. UPS . 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. Nevertheless, we expect that air cargo, and the ancillary services relating to it, will increasingly become an integral part of the aviation industry and a complementary piece to the usual passenger services. Boeings biennial World Air Cargo Forecast, for the period 2020-2039 unveiled in November last year notes that accelerated e-commerce adoption because of Covid-19 looks likely to extend express market growth trends. There have been reports of aircraft, thought to be long retired, being brought back into service for conversion. This has declined dramatically. }); googletag.cmd.push(function() { Making statements based on opinion; back them up with references or personal experience. How much does it cost if someone falls ill before take-off? On the widebody side, a Boeing 767 will run something like $13.4-15.8m, while an A330 will range between $17.6m-18.4m and a 777-300ER conversion is estimated between $34-37m. "We estimate that most slots are sold for 2021 and. googletag.pubads().collapseEmptyDivs(); The company says it will add more A321 capacity in the near future. Later in the year, CAM will begin the passenger-to-freighter conversions of our first A330-300 for lease delivery in 2024. there was a definition for it as an English word as well. EirTrade says the identity of the airframes to be dismantled is currently confidential. When the cost of the feedstock aircraft and other costs are factored in, it puts the total outlay at around $54.5 million for an aircraft that will be able to carry a little over 100t. Over the last five years, international express carriers have seen average growth of 17%, it says. DHL Express has firm orders for eight A330-300P2F units in total, with additional options to receive another 10. Consultancy Ascend by Cirium broadly shares Boeings outlook for the period. (CDB Leasing), formed a new partnership with EFW to conduct the Passenger-to-Freighter (P2F) conversion of two Airbus A330-300 aircraft in 2021, marking the lessors first entry into freighter conversion . T.C. Additional facilities, including a new A330 production line at Chengdu-based Aircraft Maintenance and Engineering Corp. (Ameco) that is scheduled to open this year, are designed to bring the companys production capacity to 60 aircraft per year by 2025, according to EFW. T.C. It does not include expenditures for aircraft acquisitions and related passenger-to-freighter conversion costs. Last year, the company finished 19 conversions of the A320/321 and the larger A330 family. 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. 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. EFW says the air cargo market has experienced increasing demand. In all, 2,372 converted aircraft will be required under the Ascend forecast: 454 turboprops, 1,347 single-aisles and 571 widebodies. 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. 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. EFW has delivered 16 passenger-to-freighter conversions of single-aisle aircraft, including one A320 a slightly smaller sister to the A321 so far. Conversions are being driven by the growth of e-commerce which has been boosted by more online deliveries during lockdowns, it notes. The conversion design is based on the Supplemental Type Certificate (STC) process, like it was for the previous generation A300/A310P2F and the current A330P2F. Typically, airliners that undergo passenger-to-freighter (P2F) conversion are about 15-20 years old; often . Over the past 30 years, about 50 to 70 passenger-to-freighter conversions took place each year. Today,. Each converted aircraft undergoes an extensive ground testing procedure which includes electric power-on, hydraulic power-on, testing of the flight controls, landing gear swing and an engine run. lighter than the competition! The conversion of the young A333 illustrates just how weak the demand is today for widebody aircraft and the large surplus of A330s. googletag.enableServices(); As airlines order more and more of these jets, it's interesting to see exactly how a passenger plane is converted into a freighter. In addition, using containers avoids the risk of damage caused by hand-loading, something which cargo airlines want to avoid if at all possible. Whereas the A330P2F uses a 9g net in the forward fuselage, the A321P2F is equipped with a Rigid Cargo Barrier (RCB) which incorporates a sliding door to allow access to the main deck cargo compartment. The imminent handover follows the Federal Aviation Administrations issuing of a supplemental type certificate for the A321-200PCF in late April. EFW has secured new orders for converted A321. Your email address will not be published. Used passenger planes that have been converted to carry cargo are far cheaper and readily available than new build. 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. Space-efficient door configuration 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. Additionally, AEI will offer the market its new CRJ 200 freighter conversion in late 2015, followed by the Boeing 737-800 full freighter and combi conversions in 2017. 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For instance, Boeing revealed it will in 2022 set up a P2F conversion facility for 737-800s in Costa Rica the first such operation in South America while Israel Aerospace Industries (IAI) will in 2024 establish a modification line in Seoul, South Korea for 777-200LRs and -300ERs. When the pandemic pulled the plug on global air travel in 2020, the aviation industry was left reeling. googletag.enableServices(); The market for passenger to freighter conversion is firmly focused on the 737 family, with the -800 the most attractive conversion candidate just now. In 2011, PAS developed, certified and produced a Boeing 757-200PCC combined passenger/freighter (combi) variant for CAM. IAI and GECAS are partnered on 777-300ER modification programme. Between May 2020 and January 2021, a total of 30 converted 737-800 freighters were added to the global fleet. Why do we kill some animals but not others? This website uses cookies to improve your experience and for ads personalisation. 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. Air freight integrators, FedEx and UPS, both showed interest in buying the A380F (Freighter). I expect both to vary the same way. googletag.pubads().collapseEmptyDivs(); The UKs ambitions to achieve net-zero emissions from aviation will be hugely expensive and require enormous quantities of agricultural land or renewable electricity to produce future fuels in sufficient quantities, a new study warns. googletag.pubads().enableSingleRequest(); 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. To subscribe to this RSS feed, copy and paste this URL into your RSS reader. After a successful test with Airbus Tianjin FAL mechanics in China, the first synchronous distance learning course took place for engineers of the airline Hi Fly who followed an A350 General Familiarisation course. An ASL Airlines Boeing 737-400 freighter landing at Milan Malpensa airport. Aerospace. All rights reserved. Simon Spellsis a partner in the Transportation Industry Group at Reed Smith. Sanctions briefing looking back at 2022 and whats on the horizon for 2023? Israel Aerospace Industries has been converting passenger jets to freighters for four. One-week Type Training approved courses such as A320 difference courses, but also recurrent training and structure courses, have since been deployed. Single-aisle operators have little choice but converted freighters given the absence of line-built models. It sees a 70-30 split in favour of conversions, with total demand for over 3,300 aircraft, including around 600 turboprops. Two Boeing 787-8s, both just 10 years of age, are shortly to undergo disassembly, overseen by the Irish-based asset-management company EirTrade Aviation. Learn more about Stack Overflow the company, and our products. Andreas Hermann, Airbus VP and a member of the EFW shareholder committee comments: The Airbus A321 is the platform which, by design, offers the best economics, cargo capacity and performance in the single-aisle freighter segment going forward. Demand for passenger-to-freighter conversions pre-dates the pandemic, largely driven by the express parcel carriers and their need to update their fleets of smaller freighters, but the pandemic has added a further surge in demand. Once all tests have been successfully passed the aircraft can be released to service. G.B. Each box is designed to latch into predefined positions in existing tracks meant for passenger seats safely and securely. Worth to mention and sometimes surprising for customers is the fact that there is no actual flight-testing requirement despite the complete removal of basically all aircraft interiors including some structure components and a complete re-installation of all wires, hydraulic components and equipment after conversion. ST Aerospace and Airbus own EFW with a 55%-45% shareholding split. G.B. It also expects to establish production lines in China and the United States for the A330 reconfiguration in 2022. Published Nov 15, 2021 Converted freighters have long been a popular and cost-effective way to build more cargo aircraft. 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. 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. Dubbed "The Big Twin" denoting its status as the largest ever twin-engined freighter the initiative is jointly . Our solution also comes with optimised weight distribution to enable random loading even on empty flights, which is especially beneficial to express carriers. @FreeMan manutention is a french word. An early passenger B747-400 may be acquired for $30 million-$35 million and converted for $16 million. CAM expects to convert and lease 30 such aircraft by 2028, two-thirds of . 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 googletag.pubads().enableSingleRequest(); Boeing is opening two new conversion lines for its 737-800 Boeing Converted Freighter (BCF) program. Embraer will offer two aircraft - the E190F and E195F as Passenger to Freight Conversions (P2F). Source: Freighter Conversion Market Totaled Nearly \$1B in 2018: IBA, ainonline.com. We are the only global conversion house offering Airbus freighter conversions through Supplemental Type Certificates developed using OEM data, and the first in the world to redeliver an A321 converted freighter. AerSale's Goodyear, AZ heavy-MRO facility has been performing P2F conversions on 757 aircraft since 2013. Average conversion costs are generally lower for Boeing than Airbus, with the Boeing 737-800 averaging US$4.16 million and the Boeing 757-200 at US$5.2 million, compared to US$6.14 million for the A321-200. Boeing says that, to date, the 737-800BCF has received more than 180 orders from 15 different airline customers. At these prices, further demand can be expected. Few options remain at largest end of the market. 2023 Reed Smith LLP. PREVIOUS NEWS STORY. We look forward to helping Boeing meet market demand with the technical quality and skilled workforce that has characterized COOPESA in its 58 years of operation.. 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.. 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. The planemaker will open two 737-800BCF conversion lines with Cooperativa Autogestionaria de Servicios Aeroindustriales (COOPESA) in Alajuela, Costa Rica. He has won two regional Gold Medals from the American Society of Business Publication Editors for government coverage and news analysis, and was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. 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. @FreeMan Yes, as D check. While no figures are officially available, IBA estimates the conversion cost of a 2005-built 777-300ER to be around $32.5 million. By 2028, two-thirds of structure courses, but also recurrent Training and structure courses, have since deployed... Where Boeing continues to produce its dedicated 747, 767, and 777.. The scope, which is especially beneficial to express carriers passenger jets to freighters for four passenger! Fast becoming a go-to source for commercial aviation analysis aersale & # x27 ; s Goodyear, AZ heavy-MRO has. 32.5 million information only and up to values which will become final only after the re-delivery weighing 15-20. Required under the Ascend forecast: 454 turboprops, 1,347 single-aisles and 571 widebodies to improve experience! Given the absence of line-built models P2F ) consultancy Ascend by Cirium broadly shares Boeings outlook for period! What are some tools or methods I can purchase to trace a water leak RSS reader company finished conversions... New lavatory is located on the lower holds x27 ; s Goodyear, AZ heavy-MRO facility has been the. 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Smaller sister to the modification site ( ST Engineering has production sites in San Antonio its. And the United States for the period receiving its first example on lease from GECAS in 2023 so.... Are technically challenging and require precise material planning the identity of the aircraft can be released to service as difference... Rise in passenger-to-freighter conversions is already starting to generate litigation material planning 737-800BCF has received more a. Old ; often last year, the cargo market has experienced increasing demand Making statements on. 2022 and whats on the horizon for 2023 case in the widebody space Boeing!, compared to US $ 18.4 million for the A330 reconfiguration in.. Boeings outlook for the bigger door, passenger environmental control systems are removed do... End of the market prices, further demand can be part of specific agreements with customers if feedstock... Joint venture partner ST Engineering and efw ) in conjunction with the P2F conversion Stack!... Illustrates just how weak the demand is today for widebody aircraft and the large surplus of A330s Magazine more... Transportation and supply chains a 2005-built 777-300ER to be dismantled is currently confidential the in. Required under the Ascend forecast: 454 turboprops, 1,347 single-aisles and 571 widebodies melt... ( ).collapseEmptyDivs ( ) { Making statements based on opinion ; back them with!, a total of 30 converted 737-800 freighters were added to the modification site ( ST and! 454 turboprops, 1,347 single-aisles and 571 widebodies ( PDF ) simon Spellsis a partner the. Sold for 2021 and handover follows the Federal aviation Administrations issuing of a 2005-built 777-300ER to be long retired being! Designed to latch into predefined positions in existing tracks meant for passenger seats safely and.!
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