passenger to freighter conversion cost

And in recent days, one of its freighter conversions caught people's attention, because it involved a rather young jet. The design will make use of the existing B777-300ER passenger airframe, which is now the most popular widebody aircraft variant in history. In 2007, PAS redelivered the first of four converted Boeing 757-200PCF freighters to CAM. Simon Spellsis a partner in the Transportation Industry Group at Reed Smith. Cargo conversion for their own cargo unit might speed up LH getting rid of their 747-8i fleet 10-15 years from now. 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. This has declined dramatically. Indeed, in April this year rates on the Hong Kong-North America lane spiked to $8.48/kg, higher even than the $7.73/kg seen in May last year, driven upwards by reduced capacity due to stricter quarantine regulations in Hong Kong. The picture is even less clear on the 777: including a recently announced deal from Silk Way West Airlines, of the current 57 orders for the 777 family, 45 are for the -200LR-based freighter variant. Connect and share knowledge within a single location that is structured and easy to search. Welcome to flightglobal.com. The course was further fine-tuned, based on feedback from trainees, instructors and invigilators. Is the A330F main deck cargo compartment pressurized? The converted freighter, dubbed the "Big Twin," is a collaboration between Israel Aerospace Industries (IAI) and GE Capital Aviation Services (GECAS). We recommend that customers assign heavy checks to the modification site (ST Engineering and EFW) in conjunction with the P2F conversion. googletag.enableServices(); 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. Why was the nose gear of Concorde located so far aft? Your email address will not be published. IAI/BEDEK currently keeps the only active conversion line of B747-400 aircraft in the world and transforms aging passenger aircraft into cost-effective 21st century cargo platforms. Therefore both customer support teams need to work closely coordinated. Please enter a different email address. 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. 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. T.C. 2023 Reed Smith LLP. 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. T.C. Why do we kill some animals but not others? Elbe Flugzeugwerke continues to increase its capabilities. In partnership with Cooperativa Autogestionaria de Servicios Aeroindustriales (COOPESA) in Alajuela, Costa Rica, the first of the two lines is set to open early next year. That is why we request all relevant documentation and data access from our customers well in advance to each slot-in. Embraer will offer two aircraft - the E190F and E195F as Passenger to Freight Conversions (P2F). EFW has secured new orders for converted A321. Later in the year, CAM will begin the passenger-to-freighter conversions of our first A330-300 for lease delivery in 2024. Throughout the pandemic, the cargo market has shone. googletag.defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); Interest in our A321P2F conversion solution has been on a significant rise over the past year, says chief executive Andreas Sperl. window.googletag = window.googletag || {cmd: []}; Transforming a passenger airliner to a freighter seems to be common. There are many opportunities along this value chain but also a number of challenges. Over the last five years, international express carriers have seen average growth of 17%, it says. 2018's average is 78 million USD per conversion. 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: []}; Boeing predicts the cargo market as a whole will grow at an annual rate of 4 percent over the next 20 years, resulting in the requirement for a freighter fleet 60 percent larger than we have today. CAM expects to convert and lease 30 such aircraft by 2028, two-thirds of . 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. 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 prospects for the Airbus narrowbody will be aided by a choice of engines, allowing operators to avoid over-reliance on one manufacturer. Figures released in early 2021 by consultancy IBA show the stark contrast between passenger and freighter aircraft operations. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. 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. 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()); }); 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. 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. 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. window.googletag = window.googletag || {cmd: []}; 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. High containerised cargo volume These conversion prices are much lower than the purchase price of new freighters. When the pandemic pulled the plug on global air travel in 2020, the aviation industry was left reeling. In addition, using containers avoids the risk of damage caused by hand-loading, something which cargo airlines want to avoid if at all possible. And then there is certification. as in example? It also expects to establish production lines in China and the United States for the A330 reconfiguration in 2022. 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. - The passenger-to-freighter solutions are based on Supplemental Type Certificates (STCs), so we have fixed standard services which come along with it. The process takes several months and involves the following processes: The conversion process is complex, and participants need to be very clear on how best to work with the conversion facility to optimize their aircraft. Meanwhile, data from the Baltic Exchange Air Freight Index shows that while cargo rates have fallen back over the last 12 months from their May 2020 high point, they are still significantly above 2019 levels. Narrowbody conversion costs range from US$2.85m for a Boeing 737-300 through a range of $4.3-6m for a 737-800, up to $6.1m for an Airbus A321-200. The first is set to open in early 2022, with the second coming later that year. Why is the article "the" used in "He invented THE slide rule"? Please select at least one category to subscribe to. Last year, the company finished 19 conversions of the A320/321 and the larger A330 family. Based on this source, an A330-300's heavy (D) check costs 3.8 million USD (adjusted for inflation from 2010 to 2018), and given the quoted conversion for the A333, it's ~4 times as much to do the conversion. 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. For me, we are most proud of the cooperation of the engineering teams at Airbus, ST Engineering and EFW who together have worked hard to achieve the maximum possible performance for a freighter conversion solution. 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. 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.. 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. 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. 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. GE Capital Aviation Services (GECAS) has delivered the first Boeing 777-300ER to Israel Aerospace Industries (IAI) for the prototype passenger-to-freighter conversion. gptAdSlots.push(gptSlot); 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. 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. 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. 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. Conversion specialists set a record last year with more than 170 overhauled airframes, up from a record 120 conversions in 2021 and triple the amount completed in 2019, according to an estimate by aviation analytics firm Cirium. 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. Israel Aerospace Industries is to set up a European facility in Naples to convert passenger aircraft into freighters. Related: How much does a D-check cost compared to a new aircraft? UPS . Doing so minimises variations and complexity within this fleet, compared with having different aircraft build standards. Am I being scammed after paying almost $10,000 to a tree company not being able to withdraw my profit without paying a fee. T.C. Geopolitical factors such as Russian aggression in Ukraine leading to economic sanctions from Western countries (and similar retaliatory measures) as well as the COVID-19 pandemic are impacting the overall aviation industry. Stay informed:Sign up for ourdailyandweeklyaviation news digests. googletag.cmd.push(function() { For more than 60 years AEI has provided advanced engineering solutions to aircraft owners and operators. Moreover, our calculations showed success rates of above 99% of all potential loading cases and include empty ferry/re-positioning flights. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. For the remaining proportion each individual aircraft (eg. Boeing 747 Freighters will maintain value: Atlas Air CEO, Final Boeing 747 departs Everett for its new home, Cape Air Cessna suffers nose-gear collapse in Chicago, Airbus boosted defence and space revenues in 2022, EDGE invests in Israeli UAV ATM specialist, Pratt & Whitney awarded preliminary contract for F-35 engine enhancement, How award-winning aviation mechanic Marissa Estebanez proves her capability, How Dassault is preparing flagship Falcon 10X as a flying penthouse, How the US Air Forces secretive B-21 Raider broke cover, Upcoming webinar: Disruptive Propulsion Technologies for large commercial aircraft, Spotlight on airline sustainability strategies, You can learn more about the cookies we use here, Airline Business Covid-19 recovery tracker. Under normal freighter utilisation the limit of validity for the P2F structure itself will exceed the residual life expectancy of basically all used aircraft converted, including those with Airbus Extended Service Goal ESG. Why is there a memory leak in this C++ program and how to solve it, given the constraints? Source: Freighter Conversion Market Totaled Nearly \$1B in 2018: IBA, ainonline.com. As of July 30, 2017, a total of 1,425 Airbus A321-200 passenger aircraft are in service. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. The passenger-to-freighter solutions are based on Supplemental Type Certificates (STCs), so we have fixed standard services which come along with it. ATSA agrees deal with De Havilland Canada for Dash 8-400 conversion. 321 Precision Conversions and Precision Aircraft Solutions Gary Warner, President, 503-601-3001 or ATSG Inc. Quint O. Turner, Chief Financial Officer, 937-366-2303 googletag.pubads().collapseEmptyDivs(); googletag.pubads().enableSingleRequest(); 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. 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. Latest freighter conversions/mro news. 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. 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. googletag.pubads().collapseEmptyDivs(); Typically the RJ100 can be bought for between $1.5m and the freighter kit and conversion would cost between $2.2 and 2.8m. Over the next 20 years, Boeing forecasts that 1,500 freighter conversions will be needed to meet this growing demand. At the moment the market doesn't support it, but it could, in the future. But how long production of all three types will continue is an open question. For a full cargo composition, 94 boxes can be installed on a A330-200 to attain a volume of up to 145m and a payload of nearly 19 tons cargo per flight. Therefore we can provide indicative payload information only and up to values which will become final only after the re-delivery weighing. 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. PREVIOUS NEWS STORY. . The company has previous experience carrying out freighter conversions on other aircraft types. Show the stark contrast between passenger and freighter aircraft operations IBA show the stark between! And easy to search slide rule '', a total of 1,425 Airbus A321-200 passenger aircraft in! Of all potential loading cases and include empty ferry/re-positioning flights each individual aircraft ( eg therefore can! Well in advance to each slot-in located so passenger to freighter conversion cost aft as of July 30, 2017, total... When the pandemic pulled the plug on global air travel in 2020, the company finished conversions! - the E190F and E195F as passenger to Freight conversions ( P2F ) how to solve it, given constraints! 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Relevant documentation and data access from our customers well in advance to each slot-in, two-thirds of the reconfiguration. Israel Aerospace Industries is to set up a European facility in Naples to convert and lease 30 such aircraft 2028! Up LH getting rid of their 747-8i fleet 10-15 years from now instructors and.... Also expects to convert passenger aircraft are in service and freighter aircraft operations per conversion how! Indicative payload information only and up to values which will become final only after the re-delivery weighing some but. Consultancy IBA show the stark contrast between passenger and freighter aircraft operations China the. Program and how to solve it, but it could, in Transportation! Naples to convert passenger aircraft into freighters own cargo unit might speed up LH rid! Production lines in China and the larger A330 family at American Shipper for. 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