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. Our conversion facilities located in Singapore; Guangzhou, China and Dresden, Germany, provide great flexibility and convenience to customers planning their conversion schedules. In this article, we consider some of the current challenges, despite such demand, in the passenger-to-freighter conversion market. 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. Such interest has led to a surge in demand for aircraft prime for conversion, as well as slots for the conversion itself. Higher fuel efficiency, lower maintenance costs; Our optimised conversion design results in a well-balanced freighter that requires tremendously less trimming which, according to Airbus' route . 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. Why are non-Western countries siding with China in the UN? 4.2 Limitations 4.2.1 Acceptable used market price. Boeing believes this ramp-up of conversion rate is necessary to meet the growing demand for these aircraft. T.C. The facility is set to come online at some point in 2022. There have been reports of aircraft, thought to be long retired, being brought back into service for conversion. 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. Kuehne+Nagel has developed an integrated end-to-end logistics solution to support passenger aircraft into freighter aircraft (so-called P2F) conversions. Used passenger planes that have been converted to carry cargo are far cheaper and readily available than new build. 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. gptAdSlots.push(gptSlot); Boeing says that, to date, the 737-800BCF has received more than 180 orders from 15 different airline customers. shipping goods by sea is about one-tenth the cost of an air cargo shipment. googletag.pubads().collapseEmptyDivs(); By Dominic Perry2021-05-12T14:51:00+01:00. 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. 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. In recent Mammoth Freighters, a U.S.-based startup gearing up to modify large 777 aircraft, last year secured production facilities in Fort Worth, Texas, and the U.K. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. The aircraft will undergo modification by the EFW joint venture which is run by ST Engineering and Airbus. How much does it cost if someone falls ill before take-off? AEI currently offers passenger-to-freighter conversions for the Boeing 737-400, 737-300, 737-200 and MD-80 aircraft. 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. Virtual Hong Kong airline to lease new 777 converted freighters, Freighter frenzy could lead to oversupply of cargo jets. Last year, the company finished 19 conversions of the A320/321 and the larger A330 family. For a swift yet reversible solution, we help passenger aircraft operators carry out modification to the aircraft cabin interiors for increased cargo carrying capacity. 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. Why do we kill some animals but not others? Global air freight's future. 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. This allows us to locate the rigid cargo barrier at this position. It only takes a minute to sign up. Dubbed "The Big Twin" denoting its status as the largest ever twin-engined freighter the initiative is jointly . While no figures are officially available, IBA estimates the conversion cost of a 2005-built 777-300ER to be around $32.5 million. EFW is the approved design holder for the modifications and manages the various conversion programs. 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). 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. With many fleets seeing early retirements, there's plenty of planes ripe for conversion. For in-service support, it is essential for us to be closely aligned with Airbus Customer Support organisation. 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. 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. By Mike Bryant. In short, WV standardisation can be part of specific agreements with customers if conversion feedstock is acquired from multiple sources. Balanced centre of gravity for loading flexibility and fuel efficiency Doing so minimises variations and complexity within this fleet, compared with having different aircraft build standards. Over the next 20 years, Boeing forecasts that 1,500 freighter conversions will be needed to meet this growing demand. By clicking Post Your Answer, you agree to our terms of service, privacy policy and cookie policy. By clicking Accept all cookies, you agree Stack Exchange can store cookies on your device and disclose information in accordance with our Cookie Policy. Jens Steinhagen, director of Boeing freighter conversions, commented on the announcement saying. CII whats the impact on the shipping industry? The B747-400BDSF Main Features Maximum designed payload (including tare) is ~253,000 lbs Main Deck Modification Air freight integrators, FedEx and UPS, both showed interest in buying the A380F (Freighter). Please enter a different email address. Would the reflected sun's radiation melt ice in LEO? Boeing will need to complete more 777-9 analysis and assuage regulatory concerns, including those related to design changes, prior to the Federal Aviation Administration agreeing the jet is on track to meet certification requirements. That is why we request all relevant documentation and data access from our customers well in advance to each slot-in. How much does a Hundred Dollar Hamburger actually cost? 2023 Reed Smith LLP. At these prices, further demand can be expected. 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. Examples: - Small: US$10-$12 million - Medium nnarrowbody: US$15-$20 million - Medium widebody: US$20-$30 million - Large: US$55-$65 million Here's how one firm, Israel Aerospace Industries, is creating the next generation of cargo freighters. EFW has its own AOG service 24/7. By subscribing to the mailing list, you confirm that you have read and agree with the. 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. T.C. T.C. 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. 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. googletag.enableServices(); @FreeMan manutention is a french word. 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. As such, there appears to be a demand/supply equilibrium currently in terms of aircraft available for conversion. Latest freighter conversions/mro news. 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. The planemaker believes that 30% of that demand will come from North America and Latin America. Aerospace. 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. He can be reached for comments and tips at, Copyright 2023, All Rights Reserved, FreightWaves, Inc, Passenger-to-freighter conversions keep on humming. googletag.pubads().collapseEmptyDivs(); The company has previous experience carrying out freighter conversions on other aircraft types. 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. News that Singaporean firms ST Engineering and investment company Temasek are joining forces to create a new leasing venture for converted freighters is the latest in a series of recent announcements focused on the booming market for passenger to freighter (P2F) modifications. 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. 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.. Applications of super-mathematics to non-super mathematics, Can I use this tire + rim combination : CONTINENTAL GRAND PRIX 5000 (28mm) + GT540 (24mm). 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. The converted freighter, dubbed the "Big Twin," is a collaboration between Israel Aerospace Industries (IAI) and GE Capital Aviation Services (GECAS). 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 . Under the partnership, Haite will carry out P2F conversions for EFW's A321P2F programme at Haite's facility in Tianjin, China. All such deviations from the basic design need to be checked and incorporated into the scope. Many are keen to invest to hedge their existing passenger aircraft exposure, create new business lines around it, and/or build out their existing expertise (in the case of MROs/conversion specialists) to increase capacity and the range of conversion programs on offer. Contacts. So far, the only certainty is that 747-8F output will end in 2022. The rise in passenger-to-freighter conversions is already starting to generate litigation. This creates an opportunity for . 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. Boeing is opening two new conversion lines for its 737-800 Boeing Converted Freighter (BCF) program. T.C. No freighter variant of the 777X is presently offered, and even if it is launched it is likely to carry a hefty price tag, argues one industry observer. 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. 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. 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. How much does it cost to lease a jetliner? The addition of Haite will give EFW its fourth production lines for the narrowbody freighter. The 757 continues to dominate the larger narrowbody space, says IBA; an additional 20 examples are pending conversion having been retired from passenger roles, it says, adding to the 298 units in operation as freighters at February 2021. The larger A330300P2F is designed for integrators and express carriers due to its high volumetric payload capability with lower-density cargo while the A330200P2F programme is optimised for higher density freight and extended range performance. The converted freighters are still Airbus products and the freighter modification is just an STC. Passenger to freight (P2F) conversion is a low-cost solution compared to the dedicated cargo aircraft. 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. We will respond to you soon. 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