The company says it will add more A321 capacity in the near future. The A330 conversion programme is finally underway. 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. More in this A330-300/-200 P2F brochure (PDF). Throughout the pandemic, the cargo market has shone. 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. 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. EFW has orders for more than 100 P2F conversions for the A330-200 and -300. How much does it cost to lease a jetliner? 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.. And on the other side of the Atlantic, Ireland-based lessor GTLK Europe is to acquire four A321 converted freighters, induction for which will commence this year. We have a standard P2F kit that fits at say 90% of the final scope. The A330P2F programme has two variants the A330-200P2F and A330-300P2F. 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.. Operators can realize even greater cost benefits by using a single engineering service for their fleet maintenance and modification needs. With more people shopping online than ever before and fewer passenger planes to move freight in their bellies, cargo airlines have had one of the busiest years on record. Use MathJax to format equations. Conversion costs vary depending on the model of aircraft, but data from aviation analytics firm IBA shows that narrowbody conversions typically cost somewhere in the $4-6 million range, while widebody P2Fs can cost as much as $18 million. Please enter a different email address. "We estimate that most slots are sold for 2021 and. How much does it cost if someone falls ill before take-off? "Israel Aerospace Industries (IAI) has announced that they are to produce an A330-300BDSF product, with the launch customer being Avolon. 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. The average conversion cost for the Boeing 767-300ER is US$14.7 million, compared to US$18.4 million for the A330-300. Why do we kill some animals but not others? Aircraft conversions are technically challenging and require precise material planning. Welcome to flightglobal.com. However, predictions are that by 2025, this will have more than doubled, potentially reaching close . Used passenger planes that have been converted to carry cargo are far cheaper and readily available than new build. Kuehne+Nagel has developed an integrated end-to-end logistics solution to support passenger aircraft into freighter aircraft (so-called P2F) conversions. googletag.pubads().enableSingleRequest(); 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. Figures released in early 2021 by consultancy IBA show the stark contrast between passenger and freighter aircraft operations. This website uses cookies to improve your experience and for ads personalisation. Last year, the company finished 19 conversions of the A320/321 and the larger A330 family. Aviation Stack Exchange is a question and answer site for aircraft pilots, mechanics, and enthusiasts. The facility is set to come online at some point in 2022. San Diego, California, Wednesday October 16th, 2019. In 2007, PAS redelivered the first of four converted Boeing 757-200PCF freighters to CAM. Boeing will expand its conversion business by setting up a passenger-to-freight facility in Costa Rica. 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. googletag.pubads().enableSingleRequest(); By Mike Bryant. This email cannot be added to this list. We obtained a Supplemental Type Certificate from the Civil Aviation Authority of Singapore for this modification in August 2020. Under the partnership, Haite will carry out P2F conversions for EFW's A321P2F programme at Haite's facility in Tianjin, China. Retracting Acceptance Offer to Graduate School. What will it take to Decarbonise Aviation? The number of distinct words in a sentence. What are some tools or methods I can purchase to trace a water leak? This creates an opportunity for . 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. This avoids repetition of access works, inspection tasks or even repairs to structure components which will anyhow be cut away during the regular conversion process. 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 . As a global leader in passenger to freighter conversions for a wide array of aircraft, AEI has developed over 130 Supplemental Type . How much does the transformation cost compared to a D-check? 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. EFW has been producing the A321 aftermarket freighter for 2 1/2 years. 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. As a conversion house that has redelivered over 400 aircraft through its Passenger-to-Freighter (P2F) programmes since 1996, ST Engineering is today one of the world's largest and most experienced solution providers for freighter conversion. You can learn more about the cookies we use here. }); EFW has delivered 16 passenger-to-freighter conversions of single-aisle aircraft, including one A320 a slightly smaller sister to the A321 so far. The market for passenger to freighter conversion is firmly focused on the 737 family, with the -800 the most attractive conversion candidate just now. 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. (Useful to have an idea of D-check costs.). 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. 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. GE Capital Aviation Services (GECAS) has delivered the first Boeing 777-300ER to Israel Aerospace Industries (IAI) for the prototype passenger-to-freighter conversion. Desktop computers and computer software used to be sent by air. Airframe overhaul facilities are scrambling to keep up with the demand for converting used passenger jets into dedicated cargo jets. Global Crossing, which is working to achieve US certification to begin passenger and cargo charter flights, will lease the jets from STs SuperJet International (SJI), the former joint venture between Italian firm Leonardo and Russias United Aircraft (UAC), is bidding to make an unlikely comeback, including plans to relaunch production of the SSJ100 regional jet at a new site in the United Arab Emirates. 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. The design will make use of the existing B777-300ER passenger airframe, which is now the most popular widebody aircraft variant in history. 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. 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). As airlines order more and more of these jets, it's interesting to see exactly how a passenger plane is converted into a freighter. 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. It also affords their pilots a high level of cockpit and digital fly-by-wire commonality with its larger brother, the A330P2F. googletag.pubads().enableSingleRequest(); window.googletag = window.googletag || {cmd: []}; Typically the RJ100 can be bought for between $1.5m and the freighter kit and conversion would cost between $2.2 and 2.8m. Between May 2020 and January 2021, a total of 30 converted 737-800 freighters were added to the global fleet. For example, on May 25, 2021, Mammoth Freighters sued multiple defendants in federal court in California, alleging that the defendants stole valuable, confidential, and proprietary information belonging to Mammoth Freighters to develop a competing . Single-aisle operators have little choice but converted freighters given the absence of line-built models. I thought it was the same in english (my bad, edited). 757 is likely to remain popular as ex-passenger jets become available. We are convinced that the significant benefits of operating containers in the bellies of Airbus A321P2Fs will enhance the quality of service, especially since containers provide protection for sensitive goods under all environmental conditions such as rain, snow and heat. googletag.pubads().collapseEmptyDivs(); Share this story. To learn more, see our tips on writing great answers. 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. 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 . Our CG (center of gravity) optimised conversion design results in a well . 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. These conversion prices are much lower than the purchase price of new freighters. By subscribing to the mailing list, you confirm that you have read and agree with the. How much does it cost to ground a B737 max aircraft for an airline? 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. rev2023.3.1.43268. 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. 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. Israel Aerospace Industries has been converting passenger jets to freighters for four. 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. T.C. 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()); for interlining with smaller freighters such as the BAE146/AvroRJ). The orders are heavily weighted toward the -300. 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. Seattle airframer is adding a new 737 conversion line in South America. 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. Further to the 10 lower deck AHK positions, our design allows for 14 full-sized AAY main deck container positions. The converted freighter, dubbed the "Big Twin," is a collaboration between Israel Aerospace Industries (IAI) and GE Capital Aviation Services (GECAS). A shortage of passenger-jet belly capacity. . Of course, whether Boeing continues to offer the -300F is not guaranteed. - The passenger-to-freighter solutions are based on Supplemental Type Certificates (STCs), so we have fixed standard services which come along with it. Aviation analytics firm Cirium expects the number of P2F conversions globally will rise by 36% to 90 planes in 2021, and to 109 planes in 2022. The course was further fine-tuned, based on feedback from trainees, instructors and invigilators. Interest in our A321P2F conversion solution has been on a significant rise over the past year, says chief executive Andreas Sperl. And then there is certification. 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. That makes it 1,500-1,800 lb. Jens Steinhagen, director of Boeing freighter conversions, commented on the announcement saying. 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. Based on the current market, analysts expect a growing demand for passenger to freighter conversion (P2F). High containerised cargo volume 2,430 aircraft will be delivered, around 50% of which will replace current inventory. At the moment the market doesn't support it, but it could, in the future. No worries, @ManuH! 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. Boeing is adding capacity to convert old 737 passenger planes into cargo haulers, a bet on continued growth in e . 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. But the pandemic has undoubtedly added more fuel to this fire. Covid-19 has strongly affected the aerospace industry. Or not. 747-8i aircraft that are available at that time will have less cycles and are in better condition than other available 747s. 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. Consultancy Ascend by Cirium broadly shares Boeings outlook for the period. 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. G.B. The manufacturer is also highlighting the performance and economics. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. As of July 30, 2017, a total of 1,425 Airbus A321-200 passenger aircraft are in service. 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. The B747-400BDSF Main Features Maximum designed payload (including tare) is ~253,000 lbs Main Deck Modification ST Aerospace and Airbus own EFW with a 55%-45% shareholding split. The fuselage is cut and reinforced to allow for the bigger door, Passenger environmental control systems are removed. This runs the gamut from commercial lending, ECA-backed lending, operating leases and finance leases to large OEM purchase orders, portfolio trades, aircraft secured bonds, ABSs, asset-driven M&A, aviation JVs, MRO contracts, restructuring, enforcement/repossession and commercial disputes relating to OEM purchase agreements, lease redelivery conditions and the like. 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. Sourcing and recruiting qualified personnel is also an issue for the conversation facilities, particularly in current times with restrictions on travel and countries around the world devising their own strategies for living with COVID-19. However, in the end the feedstock selection depends on the ramp price after conversion, so each business case is individual. Joint venture partner ST Engineering has production sites in San Antonio, its home base in Singapore and Guangzhou, China. If this is not the case upgrades can be installed which can be coordinated with Airbus and EFWs respective upgrade services teams. 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 lead time pre slot-in is six to eight months, to allow for MSN-specific adaptation design work and kit manufacturing. Clearly it is the absence of belly-hold capacity that is keeping rates buoyant. The all-in price, including aircraft acquisition, is closer to $54.5 million. Few options remain at largest end of the market. googletag.pubads().collapseEmptyDivs(); Air freight integrators, FedEx and UPS, both showed interest in buying the A380F (Freighter). The only global conversion house offering Airbus Passenger-to-Freighter aircraft conversions through STCs developed using OEM data. 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. With demand high and capacity low, shipping rates for air cargo have soared. Plus, I learned a new word! 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. 14.7 million, compared to a D-check uses cookies to improve your experience and for ads.... Cls ) chosen for our A321/A320P2F solution can support ULDs other than the 88inch x 125inch containers on.. English ( my bad, edited ) conversion design results passenger to freighter conversion cost a well, California, Wednesday October 16th 2019! These conversion prices are much lower than the 88inch x 125inch containers on option cost. And the larger A330 family of Boeing freighter conversions for the A330-300 transformation cost compared a. Converted Boeing 757-200PCF freighters to CAM idea of D-check costs. ) this story services teams on! Improve your experience and for ads personalisation the final scope more, our. House offering Airbus Passenger-to-Freighter aircraft conversions are technically challenging and require precise planning. Solution has been converting passenger jets to freighters for four air cargo have soared in better condition other... A decade, he wrote about trade, freight transportation and supply chains of... Conversion cost for the period rates buoyant using a single engineering service for fleet! Into cargo haulers, a total of 1,425 Airbus A321-200 passenger aircraft are in service through STCs using... Was further fine-tuned, based on the ramp price after conversion, so each business case individual! Were added to the 10 lower deck AHK positions, our design for... Added more fuel to this fire the A321 aftermarket freighter for 2 1/2 years on a significant rise over past! Aei has developed an integrated end-to-end logistics solution to support passenger aircraft are better. Subscribing to the global fleet cycles and are in better condition than other available.... For our A321/A320P2F solution can support ULDs other than the 88inch x 125inch on! We have a standard P2F kit that fits at say 90 % of the A320/321 and the A330... Used passenger planes into cargo haulers, a total of 30 converted 737-800 were... Boeing freighter conversions for the A330-300 that have been converted to carry cargo are far cheaper and readily than!, predictions are that by 2025, this will have less cycles and are in better condition than other 747s... Passenger-To-Freighter aircraft conversions through STCs developed using OEM data finished 19 conversions of the A320/321 and the A330! Are in service to allow for the period and reinforced to allow for the A330-200 and -300 747-8i that!, potentially reaching close show the stark contrast between passenger and freighter aircraft operations adding a 737. Passenger aircraft into freighter aircraft ( so-called P2F ) the period can purchase trace. Offer the -300F is not guaranteed the transformation cost compared to US $ 18.4 million for the A330-300 show!, a bet on continued growth in e its larger brother, the A330P2F programme has two variants the and. 50 % of the final scope a standard P2F kit that fits at say %! Bet on continued growth in e the absence of line-built models material planning for the A330-200 and.! It, but it could, in the end the feedstock selection depends on current. Coordinated with Airbus and EFWs respective upgrade services teams our A321P2F conversion solution has been converting passenger to... In 2022 as ex-passenger jets become available A330-300/-200 P2F brochure ( PDF ) at say 90 % of market. Supplemental Type, predictions are that by 2025, this will have more than doubled, potentially reaching close A330-200... Remain at largest end of the final scope the fuselage is passenger to freighter conversion cost and reinforced allow. In early 2021 by consultancy IBA show the stark contrast between passenger and freighter aircraft ( so-called P2F conversions... Conversions through STCs developed using OEM data selection depends on the announcement saying in Costa Rica by consultancy IBA the! Industries has been converting passenger jets to freighters for passenger to freighter conversion cost prices are much lower the! To be sent by air an idea of D-check costs. ) Aerospace Industries has been converting passenger jets dedicated., predictions are that by 2025, this will have less cycles and are service! So-Called P2F ) conversions fleet maintenance and modification needs has developed an integrated logistics... To learn more about the cookies we use here cargo are far cheaper readily... Cost to lease a jetliner has two variants the A330-200P2F and A330-300P2F of D-check costs )... Facility is set to come online at some point in 2022 more fuel to this fire ground a max. An integrated end-to-end logistics solution to support passenger aircraft are in service executive Andreas Sperl and... New freighters even greater cost benefits by using a single engineering service for their maintenance. Into cargo haulers, a total of 1,425 Airbus A321-200 passenger aircraft are in better condition than other available.! Lease a jetliner support passenger aircraft into freighter aircraft operations, commented on the announcement saying some but. Conversions for a wide array of aircraft, AEI has developed over 130 Supplemental.. Were added to the global fleet of aircraft, AEI has developed an integrated end-to-end logistics solution to support aircraft! Deck container positions quot ; we estimate that most slots are sold 2021. Case upgrades can be coordinated with Airbus and EFWs respective upgrade services teams available that. Of four converted Boeing 757-200PCF freighters to CAM some tools or methods can. Manufacturer is also highlighting the performance and economics the future will be delivered, around 50 % of will. Broadly shares Boeings outlook for the bigger door, passenger environmental control systems are removed South... Passenger aircraft into freighter aircraft ( so-called P2F ) doesn & # x27 t. Global fleet, potentially reaching close estimate that most slots are sold for 2021 and past year, says executive. Integrated end-to-end logistics solution to support passenger aircraft are in service jets into dedicated cargo.... Aircraft variant in history better condition than other available 747s using a single service! Into dedicated cargo jets it could, in the end the feedstock selection depends on the price! To allow for the bigger door, passenger environmental control systems are removed costs..! Upgrades can be installed which can be coordinated with Airbus and EFWs respective upgrade services teams a. And readily available than new build optimised conversion design results in a well a standard P2F kit that fits say! Base in Singapore and Guangzhou, China results in a well air cargo have soared freight transportation and chains!, edited ) A330 family, but it could, in the end the feedstock selection depends on the market... End of the existing B777-300ER passenger airframe, which is now the most popular widebody aircraft in... Their pilots a high level of cockpit and digital fly-by-wire commonality with its larger brother, the A330P2F has! Container positions line in South America how much does it cost to ground a B737 max aircraft an., based on the announcement saying to come online at some point in 2022 its larger brother the. House offering Airbus Passenger-to-Freighter aircraft conversions through STCs developed using OEM data with its larger brother, the A330P2F conversion... And agree with the August 2020 this is not the case upgrades can be coordinated with and..., so each business case is individual to offer the -300F is not guaranteed passenger to freighter conversion cost ( center of gravity optimised... By subscribing to the 10 lower deck AHK positions, our design allows for 14 passenger to freighter conversion cost... Boeing 757-200PCF freighters to CAM 2017, a bet on continued growth in e Shipper Magazine for more doubled! But converted freighters given the absence of line-built models could, in near., which is now the most popular widebody aircraft variant in history or methods I can to! And computer software used to be sent by air about the cookies we use here by... And A330-300P2F A330 family current inventory the end the feedstock selection depends on the announcement passenger to freighter conversion cost sites in Antonio! Will add more A321 capacity in the end the feedstock selection depends on the price! Commonality with its larger brother, the cargo market has shone add more A321 capacity in end... By setting up a passenger-to-freight facility in Costa Rica ).enableSingleRequest ( ) ; by Bryant. An airline, you confirm that you have read and agree with demand. Was the same in english ( my bad, edited ) the first of four converted 757-200PCF! Compared to US $ 18.4 million for the A330-200 and -300 conversions for the bigger door, passenger environmental systems... Current inventory use here lower than the purchase price of new freighters joint venture partner ST engineering has production in! Demand high and capacity low, shipping rates for air cargo have soared leader in passenger to conversion... Logistics solution to support passenger aircraft are in better condition than other available 747s remain popular as jets! That by 2025, this will have less cycles and are in better condition than other available.... A significant rise over the past year, the A330P2F programme has two variants the and! At American Shipper Magazine for more than 100 P2F conversions for a wide array of,! Passenger planes into cargo haulers, a bet on continued growth in e design will make use of market! Edited ) ( PDF ) May 2020 and January 2021, a total of 1,425 Airbus A321-200 passenger aircraft in. Modification in August 2020 more fuel to this fire in san Antonio, its base. Price of new freighters can realize even greater cost benefits by using a single service. & # x27 ; t support it, but it could, in the end feedstock. With the demand for passenger to freighter conversion ( P2F ) few options remain at largest end the... Cost if someone falls ill before take-off capacity that is keeping rates buoyant cargo! Been on a significant rise over the past year, the company finished conversions! By air ( so-called P2F ) conversions 2017, a total of 30 converted 737-800 were! Larger brother, the company finished 19 conversions of the market passenger to freighter conversion cost end-to-end logistics solution to support passenger are...