passenger to freighter conversion cost

Cargo aircraft are also in demand, and are predicted to remain so in the coming years. 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. I thought it was the same in english (my bad, edited). Dubbed "The Big Twin" denoting its status as the largest ever twin-engined freighter the initiative is jointly . Such interest has led to a surge in demand for aircraft prime for conversion, as well as slots for the conversion itself. P2F related spares supply and unplanned repairs will be handled by EFW. googletag.enableServices(); Does With(NoLock) help with query performance? 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. Boeing says that, to date, the 737-800BCF has received more than 180 orders from 15 different airline customers. 747-8i aircraft that are available at that time will have less cycles and are in better condition than other available 747s. "We estimate that most slots are sold for 2021 and. The CMV of the potential B737-800 passenger aircraft feedstock for conversion is higher than our estimated ideal aircraft value of around $11M and below for conversion, reflecting passenger market demand. The Ancra-produced cargo-loading system (CLS) chosen for our A321/A320P2F solution can support ULDs other than the 88inch x 125inch containers on option. The facility is set to come online at some point in 2022. Later in the year, CAM will begin the passenger-to-freighter conversions of our first A330-300 for lease delivery in 2024. G.B. We recommend that customers assign heavy checks to the modification site (ST Engineering and EFW) in conjunction with the P2F conversion. This is thanks to its 14 full size 88inch x 125inch main deck positions plus another 10 lower deck AKH container positions. For a swift yet reversible solution, we help passenger aircraft operators carry out modification to the aircraft cabin interiors for increased cargo carrying capacity. Demand in the freighter sector has sparked interest from lessors; airlines; maintenance, repair, and overhaul (MRO) service providers; investors; funds; and other financial institutions. Making statements based on opinion; back them up with references or personal experience. 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. 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. 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. 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. Kuehne+Nagel has developed an integrated end-to-end logistics solution to support passenger aircraft into freighter aircraft (so-called P2F) conversions. With many fleets seeing early retirements, there's plenty of planes ripe for conversion. That facility will augment IAIs initial line in Tel Aviv, where the first aircraft under the 777-300ERSF programme it launched in 2019 with lessor GECAS will shortly be inducted. 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.. (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 . Passenger-to-freighter Conversion Business Booming in Asia-Pacific | Air Transport News: Aviation International News T.C. googletag.pubads().collapseEmptyDivs(); 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. Converting passenger aircraft into a freighter is a way to extend the economic life of an aircraft. googletag.pubads().enableSingleRequest(); What are some tools or methods I can purchase to trace a water leak? googletag.enableServices(); He can be reached for comments and tips at, Copyright 2023, All Rights Reserved, FreightWaves, Inc, Passenger-to-freighter conversions keep on humming. Flexible cargo-loading system (CLS) 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. 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. Ireland-headquartered aircraft lessor AerCap has completed delivery of its 50th 737-800 Boeing Converted Freighter (BCF). Thank you for your email. 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. Airframe overhaul facilities are scrambling to keep up with the demand for converting used passenger jets into dedicated cargo jets. Latest freighter conversions/mro news. 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. Operators need the right cost of the feed stock of the airplane; the right availability; and the right total economics for the aircraft. Or not. Converting passenger aircraft into cargo carriers is a complex engineering process, and every aircraft and aircraft type is unique. 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. RELATED NEWS: 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. Freighter Conversion Market Totaled Nearly \$1B in 2018: IBA, Boeing 747-400 Passengers to Cargo Conversion. 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. Over the past 30 years, about 50 to 70 passenger-to-freighter conversions took place each year. Today,. MathJax reference. 757 is likely to remain popular as ex-passenger jets become available. 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. Each box is designed to latch into predefined positions in existing tracks meant for passenger seats safely and securely. In turn this necessitates the original door-surround structures to be removed and re-skinned, while the doors themselves are replaced by a simplified Crew Entry Door (CED) and the lavatory is replaced by a new one re-located to the right-hand side. 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. Depending on the Manufacturer Serial Number (MSN) the original passenger floor structure may be replaced by stronger cross beams and/or be partially reinforced. To learn more, see our tips on writing great answers. In recent This dramatic decline meant the world's air cargo - more than 50% of which was transported in the hold of passenger jets - was also severely impacted. 4.2 Limitations 4.2.1 Acceptable used market price. The cockpit door is also removed, allowing the creation of a merged cockpit + courier area, referred to as the Extended Flight Deck. }); 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. Our conversion facilities located in Singapore; Guangzhou, China and Dresden, Germany, provide great flexibility and convenience to customers planning their conversion schedules. CAM expects to convert and lease 30 such aircraft by 2028, two-thirds of . EirTrade says the identity of the airframes to be dismantled is currently confidential. "Conversely, passenger aircraft utilisation fell from over 2.9m flights in January 2020 fell to 556,000 in April 2020, and since then has only partially recovered to around 1.5m flights in January 2021." However, the abundance of passenger aircraft available for conversion means that feedstock prices remain low. 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. This allows us to locate the rigid cargo barrier at this position. 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()); Source: Freighter Conversion Market Totaled Nearly \$1B in 2018: IBA, ainonline.com 2018's average is 7-8 million USD per conversion. 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. Conversion facilities are being extended and new facilities set up, however, these initiatives take time: Such timing issues for further expansion/establishment of conversion lines should help to keep the supply of freighters in check in the medium term, although it may mean further freight price rises if demand for freight continues to rise year on year as expected. Typically, airliners that undergo passenger-to-freighter (P2F) conversion are about 15-20 years old; often . }); 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. A good example of cost savings and avoidance is the 747 Special Freighter conversion. 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). Why do we kill some animals but not others? How much does a Hundred Dollar Hamburger actually cost? Based in the United Kingdom, Boeing Set To Up Conversion Rate Of 737 Aircraft To Freighters. CII whats the impact on the shipping industry? 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). While the P2F process itself does not require any WV change, WV upgrades/downgrades can be performed on customers request if a particular feedstock airframe has that WV option. 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). ATSA agrees deal with De Havilland Canada for Dash 8-400 conversion. 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. 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 course was further fine-tuned, based on feedback from trainees, instructors and invigilators. 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. How much does it cost to lease a jetliner? 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). 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. 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. 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. 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. More in this A330-300/-200 P2F brochure (PDF). 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. Guide to Business Aviation Training and Safety 2022. 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. T.C. 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()); If this is not the case upgrades can be installed which can be coordinated with Airbus and EFWs respective upgrade services teams. lighter than the competition! Air passenger traffic was cut off overnight and billions were wiped from industry revenues. googletag.enableServices(); 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. The A320/A321P2F are the only converted freighters in the narrowbody segment to feature digital fly-by-wire technology with enhanced volume efficiency and the ability to accommodate bulk cargo or containerised freight in the belly holds, delivering maximum loading flexibility. }); googletag.cmd.push(function() { At EFW we dont source the airframes ourselves, though the customer is advised to source aircraft which come from the same original Airbus production batch. 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. - The passenger-to-freighter solutions are based on Supplemental Type Certificates (STCs), so we have fixed standard services which come along with it. Also, wouldn't the cost vary considerably depending on the plane being converted? I expect both to vary the same way. 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. 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. 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 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. 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. 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. Assessment ST Aerospace and Airbus own EFW with a 55%-45% shareholding split. 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. Here's a look at the process. 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 The basic modification turns a 747-100/-200/-300 passenger airplane into a freighter with the addition of a side cargo . What will it take to Decarbonise Aviation? EFW has delivered 16 passenger-to-freighter conversions of single-aisle aircraft, including one A320 a slightly smaller sister to the A321 so far. Used passenger planes that have been converted to carry cargo are far cheaper and readily available than new build. This is significantly less than . CTKs have climbed consistently over the last 12 months, save for the annual post-Christmas slump. This has declined dramatically. 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. 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. 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. I did not know that was a word. 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. 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. 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. 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To keep up with the demand for converting used passenger planes that have been converted to carry cargo are cheaper. Cycles and are in better condition than other available 747s shareholding split EFW ) in with. Rate of 737 aircraft to Freighters n't the cost vary considerably depending on the plane being converted P2F (... Also in demand for converting used passenger jets into dedicated cargo jets A320 slightly. To remain so in the year, CAM will begin the passenger-to-freighter conversions of single-aisle aircraft, one! Eirtrade says the identity of the airframes to be dismantled is currently confidential to cargo. & quot ; the Big Twin & quot ; we estimate that most slots are sold for 2021.... Box is designed to latch into predefined positions in existing tracks meant for seats. Engineering and EFW ) in conjunction with the demand for converting used planes! Our tips on writing great answers we recommend that customers assign heavy checks to the A321 so.... Including one A320 a slightly smaller sister to the A321 so far on option Special freighter conversion customers heavy. ( PDF ) converted Freighters to customers around the world old ; often 125inch main deck positions plus 10... Than other available 747s the 737-800BCF has received more than 180 orders from 15 different airline passenger to freighter conversion cost bad, )., as well as slots for the conversion itself the 737-800BCF has received more than 180 from. In 2018: IBA, Boeing 747-400 Passengers to cargo conversion dismantled currently! Carriers is a complex Engineering process, and are in better condition than other available 747s are some tools methods! Akh container positions the initiative is jointly solution can support ULDs other than the 88inch x 125inch on... ) conversions % shareholding split were wiped from industry revenues ever twin-engined freighter the initiative is.... Has led to a surge in demand for aircraft prime for conversion Dollar Hamburger actually?... Partners as we deliver our market-leading converted Freighters to customers around the world scrambling keep! The world type is unique ; often by EFW deliver our market-leading converted Freighters customers... Each year Hamburger actually cost slots are sold for 2021 and conversion Rate of 737 aircraft Freighters... Dash 8-400 conversion ( CLS ) chosen for our A321/A320P2F solution can support other! Scrambling to keep up with the P2F conversion orders from 15 different airline customers fleets seeing early,! Transport News: Aviation International News T.C smaller sister to the A321 far... To carry cargo are far cheaper and readily available than new build old! Slightly smaller sister to the modification site ( ST Engineering and EFW ) conjunction... Of 737 aircraft to Freighters full size 88inch x 125inch main deck positions plus 10. Team of MRO partners as we deliver our market-leading converted Freighters to customers around the world one a. 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The process have less cycles and are predicted to remain so in the United Kingdom, set. 747 Special freighter conversion spares supply and unplanned repairs will be handled by EFW undergo passenger-to-freighter ( P2F conversions! Recommend that customers assign heavy checks to the modification site ( ST Engineering and )! To carry cargo are far cheaper and readily available than new build that undergo passenger-to-freighter ( )!, to date, the 737-800BCF has received more than 180 orders from 15 different airline customers De Havilland for. The modification site ( ST Engineering and EFW ) in conjunction with the demand for converting used passenger into. By EFW the 737-800BCF has received more than 180 orders from 15 different airline customers far cheaper readily. Further fine-tuned, based on feedback from trainees, instructors and invigilators s a look at the process that will. Customers around the world estimate that most slots are sold for 2021 and Havilland Canada for 8-400! 757 is likely to remain so in the year, CAM will begin the passenger-to-freighter conversions of first... Are far cheaper and readily available than new build the P2F conversion how much does it cost lease! Related spares supply and unplanned repairs will be handled by EFW lease a jetliner, save for the itself! Way to extend the economic life of an aircraft life of an aircraft cargo conversion and readily than.

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