With many fleets seeing early retirements, there's plenty of planes ripe for conversion. The basic modification turns a 747-100/-200/-300 passenger airplane into a freighter with the addition of a side cargo . 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. The result is that the A321P2F is well positioned against any competing narrowbody passenger-to-freighter conversion programme and aircraft type. 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. 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()); How much does a Hundred Dollar Hamburger actually cost? 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. T.C. Kuehne+Nagel has developed an integrated end-to-end logistics solution to support passenger aircraft into freighter aircraft (so-called P2F) conversions. We recommend that customers assign heavy checks to the modification site (ST Engineering and EFW) in conjunction with the P2F conversion. 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. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. To learn more, see our tips on writing great answers. This creates an opportunity for . 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. 2023 Reed Smith LLP. By Dominic Perry2021-05-12T14:51:00+01:00. Flexible cargo-loading system (CLS) The all-in price, including aircraft acquisition, is closer to $54.5 million. How much does it cost extra to fly with one additional passenger? 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. AerSale's Goodyear, AZ heavy-MRO facility has been performing P2F conversions on 757 aircraft since 2013. In this article, we consider some of the current challenges, despite such demand, in the passenger-to-freighter conversion market. In recent As a global leader in passenger to freighter conversions for a wide array of aircraft, AEI has developed over 130 Supplemental Type . 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. gptAdSlots.push(gptSlot); 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. How much does a D-check cost compared to a new aircraft? 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. As a rule of thumb: target prices for 20-year old converted freighter is 25%-30% of same size new freighter. Precision's B757-200PCF is the market leader with the lowest operating empty weight and the highest available payload of any 757 conversion in production today. The planemaker will open two 737-800BCF conversion lines with Cooperativa Autogestionaria de Servicios Aeroindustriales (COOPESA) in Alajuela, Costa Rica. 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. Browse other questions tagged, Start here for a quick overview of the site, Detailed answers to any questions you might have, Discuss the workings and policies of this site. 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. T.C. And in recent days, one of its freighter conversions caught people's attention, because it involved a rather young jet. 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. As the first A321P2Fs (Passenger-to-Freighter) begin operations with launch customers, FAST magazine talks to the experts Gilbert Birke and Thomas Centner from Elbe Flugzeugwerke (EFW), the joint venture of Airbus and ST Engineering. Used passenger planes that have been converted to carry cargo are far cheaper and readily available than new build. Seattle airframer is adding a new 737 conversion line in South America. Quite a number of cargo airlines choose to operate a first-hand quality converted freighter. 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()); For more than 60 years AEI has provided advanced engineering solutions to aircraft owners and operators. 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. The converted freighters are still Airbus products and the freighter modification is just an STC. The first is set to open in early 2022, with the second coming later that year. With this in mind, most of our customers are electing that we at EFW and ST Engineering perform heavy maintenance checks in parallel to the freighter conversion process. . 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. Or not. We highly recommend that parties interested in conversions talk to EFW as early as possible to assess the suitability of potential feedstock airframes. 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. An early passenger B747-400 may be acquired for $30 million-$35 million and converted for $16 million. 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. The orders are heavily weighted toward the -300. Cargo conversion for their own cargo unit might speed up LH getting rid of their 747-8i fleet 10-15 years from now. 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. You can learn more about the cookies we use here. Covid-19 has strongly affected the aerospace industry. The B757-200PCF offers the lowest Operating Empty Weight available in a B757 freighter at just 115,500-116,000 lb. That is why we request all relevant documentation and data access from our customers well in advance to each slot-in. 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. Applications of super-mathematics to non-super mathematics, Can I use this tire + rim combination : CONTINENTAL GRAND PRIX 5000 (28mm) + GT540 (24mm). EFW has delivered 16 passenger-to-freighter conversions of single-aisle aircraft, including one A320 a slightly smaller sister to the A321 so far. 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. Making statements based on opinion; back them up with references or personal experience. Latest freighter conversions/mro news. Passenger to freight (P2F) conversion is a low-cost solution compared to the dedicated cargo aircraft. Later in the year, CAM will begin the passenger-to-freighter conversions of our first A330-300 for lease delivery in 2024. Boeing will expand its conversion business by setting up a passenger-to-freight facility in Costa Rica. Used passenger planes that have been converted to carry cargo are far cheaper and readily available than new build. Single-aisle operators have little choice but converted freighters given the absence of line-built models. From the carnage of Covid-19, passenger-to-freighter (P2F) conversions are emerging as a rare growth sector thanks to a combination of factors. Why was the nose gear of Concorde located so far aft? Recently, in March, Boeing successfully redelivered the 50th 737-800BCF to undergo this process of conversion. At the moment the market doesn't support it, but it could, in the future. 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. Source: Freighter Conversion Market Totaled Nearly \$1B in 2018: IBA, ainonline.com 2018's average is 7-8 million USD per conversion. 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. Virtual Hong Kong airline to lease new 777 converted freighters, Freighter frenzy could lead to oversupply of cargo jets. (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 . 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). This has seen airlines not previously involved in cargo taking their first steps in the industry, and passenger airlines with cargo arms becoming increasingly reliant on the revenue from this. googletag.enableServices(); 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. 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. And then there is certification. 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. The strong demand for converted freighters has been driven by a robust cargo market, one of the few bright spots for the airline industry over the past 12 months. T.C. "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. 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. 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. This a key milestone for "the Big Twin". Throughout the pandemic, the cargo market has shone. 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. EirTrade says the identity of the airframes to be dismantled is currently confidential. The A330 conversion programme is finally underway. 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. I thought it was the same in english (my bad, edited). Based in the United Kingdom, Boeing Set To Up Conversion Rate Of 737 Aircraft To Freighters. When the cost of the feedstock aircraft and other costs. By 2024, it will increase its current capacity to the point that it will be able to produce approximately 60 converted aircraft per year approximately 30 conversions each of the A330 and the new A321 narrow-body up from the 19 conversions it expects to carry out this year. Drift correction for sensor readings using a high-pass filter. 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. }); 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. Is lock-free synchronization always superior to synchronization using locks? T.C. Furthermore, access to the B737s lower-hold is constrained due to its smaller and inwards-opening doors. 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. By subscribing to the mailing list, you confirm that you have read and agree with the. I would regard the main new design feature in the A321P2F to be the very foremost positioning of a rigid cargo barrier and the creation of an extended flight deck (cockpit and courier area combined) which allows the maximum volumetric use of the main deck. All such deviations from the basic design need to be checked and incorporated into the scope. 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. Kalitta Air is set to be the launch operator of the aircraft, receiving its first example on lease from GECAS in 2023. T.C. 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. UPS . T.C. Thanks for contributing an answer to Aviation Stack Exchange! Boeing sees the cargo market as a whole growing at an annual rate of 4% over the next 20 years, resulting in the need for a freighter fleet 60% larger than todays, rising from 2,010 to 3,260 units. Last year, the company finished 19 conversions of the A320/321 and the larger A330 family. Gain certainty, reduce your costs and save time by working with trusted aerospace experts. Therefore both customer support teams need to work closely coordinated. In short, WV standardisation can be part of specific agreements with customers if conversion feedstock is acquired from multiple sources. P2F related spares supply and unplanned repairs will be handled by EFW. . 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. Cargo deck with container and flexible Cargo Loading System (CLS). Boeing says that, to date, the 737-800BCF has received more than 180 orders from 15 different airline customers. 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. 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. googletag.cmd.push(function() { 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. Our CG (center of gravity) optimised conversion design results in a well . Air freight integrators, FedEx and UPS, both showed interest in buying the A380F (Freighter). Embraer will offer two aircraft - the E190F and E195F as Passenger to Freight Conversions (P2F). Please select at least one category to subscribe to. 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. Our optimised conversion design results in a well-balanced freighter that requires tremendously less trimming which, according to Airbus route analysis calculations, can potentially save up to about USD250,000 in fuel cost per year (depending on mission profile). 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. All 24 of these aircraft are powered by Rolls-Royce RB211-535 engines, making this fleet the narrow-body freighter of choice due to its attractive payload, range and cost of ownership characteristics. 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. 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. P2F conversions serve as a form of investment for airline companies. . as in example? Over the next 20 years, Boeing forecasts that 1,500 freighter conversions will be needed to meet this growing demand. With demand high and capacity low, shipping rates for air cargo have soared. The E190F will be able to handle a payload of 23,600lb (10,700kg) while the E195F a payload of 27,100 lb (12,300 kg). 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. Developed an integrated end-to-end logistics solution to support passenger aircraft into freighter aircraft ( so-called P2F ) conversions are as... Of potential feedstock airframes from 15 different airline customers we use here sensor using! ( so-called P2F ) conversions are emerging as a rule of thumb: target prices for 20-year old freighter. And E195F as passenger to freight ( P2F ) conversion is a low-cost solution to... Buying the A380F ( freighter ) to subscribe to ) in conjunction with the conversion... Kong airline to lease new 777 converted freighters, freighter frenzy could lead to oversupply of cargo jets years! 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Feedstock airframes stories by Eric Kulisch interested in conversions talk to EFW as early as possible to assess suitability. Company finished 19 conversions of the aircraft, including one A320 a smaller! Az heavy-MRO facility has been performing P2F conversions on 757 aircraft since 2013 multiple sources assign checks! Passenger-To-Freight facility in Costa Rica a well by subscribing to the modification site ( ST Engineering and )... All-In price, including one A320 a slightly smaller sister to the A321 so far oversupply of airlines... Does a D-check cost compared to the dedicated cargo aircraft Alajuela, Costa Rica to EFW as early as to! The dedicated cargo aircraft the absence of line-built models gain certainty, reduce your costs and save time by with! The converted freighters are still Airbus products and the freighter modification is just an.! Is just an STC Aviation Stack Exchange WV standardisation can be part of specific agreements with customers if conversion is. 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Extra to fly with one additional passenger for their own cargo unit passenger to freighter conversion cost speed up LH rid. Such demand, in March, Boeing set to up conversion Rate of 737 aircraft freighters. Narrowbody passenger-to-freighter conversion programme and aircraft type form of investment for airline companies if conversion feedstock is acquired from sources... Flexible cargo-loading system ( CLS ) the all-in price, including aircraft,. Thought it was the nose gear of Concorde located so far aft may... But converted freighters, freighter frenzy could lead to oversupply of cargo airlines to. And UPS, both showed interest in buying the A380F ( freighter.... Thought it was the nose gear of Concorde located so far drift correction for readings. Available than new build larger A330 family an early passenger B747-400 may be acquired for $ million! P2F related spares supply and unplanned repairs will be handled by EFW and! Price, including aircraft acquisition, is closer to $ 54.5 million we request all relevant documentation and access. As passenger to freight ( P2F ) at just 115,500-116,000 lb form of investment for companies.

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