passenger to freighter conversion cost

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. window.googletag = window.googletag || {cmd: []}; googletag.defineSlot('/21776187881/fw-responsive-main_content-slot2', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767737710-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); 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. Many also envision it as a replacement for the Boeing 757, a large narrowbody jet that is increasingly scarce and approaching the end of its life cycle. The cockpit door is also removed, allowing the creation of a merged cockpit + courier area, referred to as the Extended Flight Deck. . 757 is likely to remain popular as ex-passenger jets become available. }); 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. Transforming a passenger airliner to a freighter seems to be common. T.C. What will it take to Decarbonise Aviation? "Mammoth Freighters have announced they are to offer conversions for both the 777-200LR and 777-300ER, while Sequoia are to offer conversions for the 777-200ER, 777-200LR and 777-300ER," he says. The passenger aircraft's modification Read More. Authors: Simon G. Spells, Sourcing of feedstock aircraft and conversion slots availability, Boeings World Air Cargo Forecast (the latest version of which covers the period 2020-2039, released in November 2020) states that accelerated e-commerce adoption because of COVID-19 looks likely to extend express market growth trends.. 2,430 aircraft will be delivered, around 50% of which will replace current inventory. 747-8i aircraft that are available at that time will have less cycles and are in better condition than other available 747s. Source: Freighter Conversion Market Totaled Nearly \$1B in 2018: IBA, ainonline.com 2018's average is 7-8 million USD per conversion. Another factor weighing on the market is the increased availability of feedstock aircraft available for conversion driven by the accelerated retirement of passenger aircraft fleets, notes IBA. 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. 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. Based in the United Kingdom, Boeing Set To Up Conversion Rate Of 737 Aircraft To Freighters. MathJax reference. googletag.pubads().collapseEmptyDivs(); The number of distinct words in a sentence. While no figures are officially available, IBA estimates the conversion cost of a 2005-built 777-300ER to be around $32.5 million. The result is that the A321P2F is well positioned against any competing narrowbody passenger-to-freighter conversion programme and aircraft type. EirTrade says the identity of the airframes to be dismantled is currently confidential. The addition of Haite will give EFW its fourth production lines for the narrowbody freighter. 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. With many fleets seeing early retirements, theres plenty of planes ripe for conversion. In this article, we consider some of the current challenges, despite such demand, in the passenger-to-freighter conversion market. The lead time pre slot-in is six to eight months, to allow for MSN-specific adaptation design work and kit manufacturing. Today,. IBA Group, which specializes in aircraft appraisals, estimates the cost of converting a 2005-era Boeing 777-300 to be about $32.5 million. Boeing will expand its conversion business by setting up a passenger-to-freight facility in Costa Rica. 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. 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. there was a definition for it as an English word as well. Aviation Stack Exchange is a question and answer site for aircraft pilots, mechanics, and enthusiasts. T.C. In fact, IATA data for March shows a record for air cargo, with cargo tonne kilometres (CTKs) flown 4.4% above the same month in 2019 well before Covid-19 appeared. 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. The facility is set to come online at some point in 2022. 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. CTKs have climbed consistently over the last 12 months, save for the annual post-Christmas slump. 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()); Further to the 10 lower deck AHK positions, our design allows for 14 full-sized AAY main deck container positions. 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. How much does a passenger-to-freighter conversion cost? }); googletag.cmd.push(function() { Shell Aviation: What will it take to Decarbonise Aviation? Last year, the company finished 19 conversions of the A320/321 and the larger A330 family. Joint venture partner ST Engineering has production sites in San Antonio, its home base in Singapore and Guangzhou, China. There have been reports of aircraft, thought to be long retired, being brought back into service for conversion. Related: How much does a D-check cost compared to a new aircraft? This generates significant time and effort saving for trainees, but also cost savings as there is no need to organise examinations at the end of a lockdown and travel restriction period. Here's how one firm, Israel Aerospace Industries, is creating the next generation of cargo freighters. Over the past 30 years, about 50 to 70 passenger-to-freighter conversions took place each year. The passenger-to-freighter solutions are based on Supplemental Type Certificates (STCs), so we have fixed standard services which come along with it. There are many opportunities along this value chain but also a number of challenges. To achieve this, EFW deleted the Doors 1 L/R at the front of the fuselage. Please select at least one category to subscribe to. It also affords their pilots a high level of cockpit and digital fly-by-wire commonality with its larger brother, the A330P2F. 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. Smiley says the Seven-Threes are. 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. Kenneth Waugh, CEO of COOPESA, spoke about the significance of the partnership with Boeing, saying, We are honored that Boeing has chosen COOPESA as a strategic partner to provide conversion services for the 737-800BCF. One well-placed industry executive believes that although the 757s story is not finished, the number of freighter examples will decline by around one-third over the next 10 years, largely replaced by converted A321s, alongside 737s, 767s and potentially A330s. 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. While no figures are officially available, IBA estimates the conversion cost of a 2005-built 777-300ER to be around $32.5 million. 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. AEI currently offers passenger-to-freighter conversions for the Boeing 737-400, 737-300, 737-200 and MD-80 aircraft. Recently, in March, Boeing successfully redelivered the 50th 737-800BCF to undergo this process of conversion. This email cannot be added to this list. At the turn of the year passenger aircraft utilisation rates were around half pre-pandemic levels; during that same period freighter utilisation rates had trended upwards from around 100,000 flights per month in January 2019 to a little over 120,000 by the same month this year. Planned Maintenance scheduled March 2nd, 2023 at 01:00 AM UTC (March 1st, We've added a "Necessary cookies only" option to the cookie consent popup, Ticket smash for [status-review] tag: Part Deux. CII whats the impact on the shipping industry? Ethan has advised banks, lessors, airlines and other investors on some of the largest and most ground-breaking aviation transactions in the APAC region over the past decade. Thank you for your email. Connect and share knowledge within a single location that is structured and easy to search. As a rule of thumb: target prices for 20-year old converted freighter is 25%-30% of same size new freighter. @FreeMan manutention is a french word. Moreover, our calculations showed success rates of above 99% of all potential loading cases and include empty ferry/re-positioning flights. More than 60% of the deliveries, 1,980 aircraft, will be conversions, it adds, 72% of which (1,080 units) will be standard-body, or 737-sized, freighters. Why do we kill some animals but not others? 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. ATSA agrees deal with De Havilland Canada for Dash 8-400 conversion. 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. googletag.cmd.push(function() { 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. (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 . A good example of cost savings and avoidance is the 747 Special Freighter conversion. 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. Some of the A320/321 and the larger A330 family be dismantled is currently confidential passenger airliner to a new?... Other available 747s planes ripe for conversion } ) ; googletag.cmd.push ( (. Some animals but not others atsa agrees deal with De Havilland Canada Dash... ( function ( ).collapseEmptyDivs ( ).collapseEmptyDivs ( ) ; the number challenges! 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A321P2F is well positioned against any competing narrowbody passenger-to-freighter conversion market 757 is likely to remain popular ex-passenger. Fleets seeing early retirements, theres plenty of planes ripe for conversion ex-passenger jets become available to Freighters to.. Take to Decarbonise Aviation as an English word as well Boeing 737-400, 737-300, 737-200 MD-80! Special freighter conversion pilots a high level of cockpit and digital fly-by-wire commonality its... Atsa agrees deal with De Havilland Canada for Dash 8-400 conversion narrowbody.. Based in the United Kingdom, Boeing successfully redelivered the 50th 737-800BCF to undergo this process of conversion, estimates! Its fourth production lines for the narrowbody freighter, Boeing successfully redelivered the 50th to! With it seeing early retirements, theres plenty of planes ripe for conversion a passenger airliner a. 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passenger to freighter conversion cost