Assessment Smiley says the Seven-Threes are. From the carnage of Covid-19, passenger-to-freighter (P2F) conversions are emerging as a rare growth sector thanks to a combination of factors. Each box is designed to latch into predefined positions in existing tracks meant for passenger seats safely and securely. "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. Source: Boeing 747-400 Passengers to Cargo Conversion, Israel Aerospace Industries, YouTube. 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. Kalitta Air is set to be the launch operator of the aircraft, receiving its first example on lease from GECAS in 2023. low maintenance costs. Of course, whether Boeing continues to offer the -300F is not guaranteed. One-week Type Training approved courses such as A320 difference courses, but also recurrent training and structure courses, have since been deployed. Balanced centre of gravity for loading flexibility and fuel efficiency Passenger-to-freighter Conversion Business Booming in Asia-Pacific | Air Transport News: Aviation International News 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 . 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. For more than 60 years AEI has provided advanced engineering solutions to aircraft owners and operators. Jordan's line about intimate parties in The Great Gatsby? EFW says the air cargo market has experienced increasing demand. Based on the current market, analysts expect a growing demand for passenger to freighter conversion (P2F). Furthermore, access to the B737s lower-hold is constrained due to its smaller and inwards-opening doors. Applications of super-mathematics to non-super mathematics, Can I use this tire + rim combination : CONTINENTAL GRAND PRIX 5000 (28mm) + GT540 (24mm). AEI currently offers passenger-to-freighter conversions for the Boeing 737-400, 737-300, 737-200 and MD-80 aircraft. This is thanks to its 14 full size 88inch x 125inch main deck positions plus another 10 lower deck AKH container positions. Global air freight's future. 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. AerSale's Goodyear, AZ heavy-MRO facility has been performing P2F conversions on 757 aircraft since 2013. Also, wouldn't the cost vary considerably depending on the plane being converted? 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. The B747-400BDSF Main Features Maximum designed payload (including tare) is ~253,000 lbs Main Deck Modification Israel Aerospace Industries has been converting passenger jets to freighters for four. for interlining with smaller freighters such as the BAE146/AvroRJ). In recent 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. 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. This report analyzes the global commercial aircraft freighter conversion market. The lead time pre slot-in is six to eight months, to allow for MSN-specific adaptation design work and kit manufacturing. Thus LCF Conversions foresees a straightforward certification process, and says the cost of conversion of an A340-300 aircraft using the LCF approach would be just US$6.5 million, including the cargo loading system. as in example? 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. I expect both to vary the same way. Kuehne+Nagel now offers a reliable end-to-end solution to manage conversions of retired passenger aircraft into a long-lasting freighter, so our customers can scale up their operations, reduce costs and boost cargo capacity. This setup thus provides the A321P2F with enough space to accommodate 14 cargo containers measuring 88-inches x 125-inches (or pallets) on the main deck. Desktop computers and computer software used to be sent by air. 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. Lessors remain optimistic about long-term growth projections for air cargo, fueled by the fast-fulfillment requirements of e-commerce, and are investing in new converted freighters to replace aging aircraft and expand their fleets. The all-in price, including aircraft acquisition, is closer to $54.5 million. 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. Designated the A330-300P2F in its converted form, this aircraft is particularly suited for integrators and express carriers due to its high volumetric payload capability with lower-density cargo. Cargo deck with container and flexible Cargo Loading System (CLS). Based in the United Kingdom, Boeing Set To Up Conversion Rate Of 737 Aircraft To Freighters. DHL Express has become the first operator to take delivery of the A330-300 Passenger-to-Freighter (P2F) converted aircraft from Elbe Flugzeugwerke (EFW). Boeing says that, to date, the 737-800BCF has received more than 180 orders from 15 different airline customers. In addition, using containers avoids the risk of damage caused by hand-loading, something which cargo airlines want to avoid if at all possible. We recommend that customers assign heavy checks to the modification site (ST Engineering and EFW) in conjunction with the P2F conversion. 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. You can learn more about the cookies we use here. These conversion prices are much lower than the purchase price of new freighters. 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 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. EFW has been producing the A321 aftermarket freighter for 2 1/2 years. Later in the year, CAM will begin the passenger-to-freighter conversions of our first A330-300 for lease delivery in 2024. Having examination sessions at the end of the training courses and training certificates delivered in sequence was another benefit. In turn, the new lavatory is located on the right-hand side. When the cost of the feedstock aircraft and other costs. . 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. Typically, airliners that undergo passenger-to-freighter (P2F) conversion are about 15-20 years old; often . With many fleets seeing early retirements, there's plenty of planes ripe for conversion. One well-placed industry executive believes that although the 757s story is not finished, the number of freighter examples will decline by around one-third over the next 10 years, largely replaced by converted A321s, alongside 737s, 767s and potentially A330s. 2023 Reed Smith LLP. Stay informed:Sign up for ourdailyandweeklyaviation news digests. 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. . 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()); Between May 2020 and January 2021, a total of 30 converted 737-800 freighters were added to the global fleet. Passenger to freight (P2F) conversion is a low-cost solution compared to the dedicated cargo aircraft. googletag.pubads().enableSingleRequest(); It sees a 70-30 split in favour of conversions, with total demand for over 3,300 aircraft, including around 600 turboprops. High Court strikes a cautionary note on lease termination: The recent case of Peregrine v Laudamotion, Sustainability trends in the aviation sector, Receive the latest thought leadership from across Reed Smith, Carrying the load: The use of passenger aircraft to haul cargo during the COVID-19 pandemic, Managing the wider supply chain: The logistics challenge, The current challenges of passenger-to-freighter conversions, Tax, Private Client Services and Executive Compensation, Modern Slavery and Human Trafficking Statement. In all, 2,372 converted aircraft will be required under the Ascend forecast: 454 turboprops, 1,347 single-aisles and 571 widebodies. The imminent handover follows the Federal Aviation Administrations issuing of a supplemental type certificate for the A321-200PCF in late April. EFWs A321P2F solution offers a gross payload of over 28 metric tonnes and comes with optimised weight distribution which contributes to its high flexibility for operators, in particular for express carriers. The A330 conversion programme is finally underway. For instance, the EFW A321 P2F conversion programme was launched in 2015, with a launch order secured two years later. How much does it cost if someone falls ill before take-off? 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. 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. 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. Later in the year, CAM will begin the passenger-to-freighter conversions of our first A330-300 for lease delivery in 2024. The direct cost of converting a Boeing 767-300ER amounts to some \$14 million, compared with \$15 million for an A330-200 and \$16 million for an A330-300 . CAM expects to convert and lease 30 such aircraft by 2028, two-thirds of . 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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. Or not. How much does the design, implementation, test and certification of a Passenger-to-Freighter Conversion cost? An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. IAI and GECAS are partnered on 777-300ER modification programme. MathJax reference. T.C. The basic modification turns a 747-100/-200/-300 passenger airplane into a freighter with the addition of a side cargo . googletag.pubads().collapseEmptyDivs(); EFW is the approved design holder for the modifications and manages the various conversion programs. What are some tools or methods I can purchase to trace a water leak? 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. Converting passenger aircraft into a freighter is a way to extend the economic life of an aircraft. 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. googletag.pubads().enableSingleRequest(); }); 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. Therefore both customer support teams need to work closely coordinated. 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). The design will make use of the existing B777-300ER passenger airframe, which is now the most popular widebody aircraft variant in history. Of course, growing demand for conversions pre-dates the pandemic, driven by the need of the big integrators express parcel carriers such as FedEx, DHL and UPS, and Amazon, to a degree to update their fleets of smaller freighters. So far, the only certainty is that 747-8F output will end in 2022. 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. 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. 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()); By clicking Accept all cookies, you agree Stack Exchange can store cookies on your device and disclose information in accordance with our Cookie Policy. 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. It only takes a minute to sign up. More than 60% of the deliveries, 1,980 aircraft, will be conversions, it adds, 72% of which (1,080 units) will be standard-body, or 737-sized, freighters. The prototype A321P2F ("Passenger-to-Freighter" conversion) aircraft . An ASL Airlines Boeing 737-400 freighter landing at Milan Malpensa airport. While no figures are officially available, IBA estimates the conversion cost of a 2005-built 777-300ER to be around $32.5 million. 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. Meanwhile, data from the Baltic Exchange Air Freight Index shows that while cargo rates have fallen back over the last 12 months from their May 2020 high point, they are still significantly above 2019 levels. Air Transport Services Group said Thursday it will begin procuring Airbus A330 passenger jets and convert them into freighters as part of a broader strategy to expand its leasing business in. 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. The conversion will include implementation of a main-deck cargo door, reinforcement of the fuselage, fitting of window plugs and a full freighter interior including 9g rigid barriers and loading system plus modification of the crew compartment. All such deviations from the basic design need to be checked and incorporated into the scope. 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 . 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. googletag.pubads().collapseEmptyDivs(); googletag.enableServices(); T.C. Over the last five years, international express carriers have seen average growth of 17%, it says. HAECO Xiamen has carried out 757 conversions for Beaverton, Oregon-based Precision Aircraft Solutions since 2010 and is preparing to switch a 757 production line to support the A321 by the summer. 2,430 aircraft will be delivered, around 50% of which will replace current inventory. We are even seeing shipping companies come into the space to supplement their existing seaborne freight offerings, principally to help mitigate the current issues of congestion and delays in the container shipping market, particularly on Asia-U.S. routes where there are no land-based alternatives. 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. window.googletag = window.googletag || {cmd: []}; For a swift yet reversible solution, we help passenger aircraft operators carry out modification to the aircraft cabin interiors for increased cargo carrying capacity. Making statements based on opinion; back them up with references or personal experience. 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. In principle all A321s can be converted to freighters. It does not include expenditures for aircraft acquisitions and related passenger-to-freighter conversion costs. And then there is certification. Managing Editor - Joanna has worked in publishing for more than a decade and is fast becoming a go-to source for commercial aviation analysis. 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. The rise in passenger-to-freighter conversions is already starting to generate litigation. The course was further fine-tuned, based on feedback from trainees, instructors and invigilators. googletag.pubads().collapseEmptyDivs(); 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). Connect and share knowledge within a single location that is structured and easy to search. The passenger aircraft's modification Read More. PAS and ATSG have a long-term relationship. Over the next 20 years, Boeing forecasts that 1,500 freighter conversions will be needed to meet this growing demand. The Ancra-produced CLS chosen by EFW for the A321/A320P2F can support industry standard Unit Load Device (ULD) containers other than the 88inch x 125inch containers on option such as the 96inch x125inch containers. This website uses cookies to improve your experience and for ads personalisation. 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. Aviation Stack Exchange is a question and answer site for aircraft pilots, mechanics, and enthusiasts. 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. In IBAs view, the 737 will continue as the mainstay of the smaller narrowbody market, with conversion activity shifting to the -800 as feedstock availability of earlier 737 Classics dries up. P2F conversions serve as a form of investment for airline companies. How much does it cost to ground a B737 max aircraft for an airline? Examples: - Small: US$10-$12 million - Medium nnarrowbody: US$15-$20 million - Medium widebody: US$20-$30 million - Large: US$55-$65 million window.googletag = window.googletag || {cmd: []}; We have a standard P2F kit that fits at say 90% of the final scope. T.C. In addition, the A321s Doors 4 L/R are removed and re-skinned, which is necessary to accommodate a 14thfull-size container position without limitation. Our conversion facilities located in Singapore; Guangzhou, China and Dresden, Germany, provide great flexibility and convenience to customers planning their conversion schedules. Why is there a memory leak in this C++ program and how to solve it, given the constraints? With the increased demand for passenger-to-freighter conversions, has this meant a shortage of feedstock? googletag.pubads().collapseEmptyDivs(); 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. Air passenger traffic was cut off overnight and billions were wiped from industry revenues. T.C. }); EFW has delivered 16 passenger-to-freighter conversions of single-aisle aircraft, including one A320 a slightly smaller sister to the A321 so far. T.C. The passenger-to-freighter solutions are based on Supplemental Type Certificates (STCs), so we have fixed standard services which come along with it. googletag.enableServices(); The manufacturer is also highlighting the performance and economics. Over the past 10 years, the type of cargo flown by air has shifted to highervalue and more specialised products, claims Goater. 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. Aviation experts consider the narrowbody plane a highly capable alternative to the Boeing 737-800 converted freighter, especially since it is able to fit smaller, standardized containers in the lower hold not just loose cargo. T.C. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. As the first third-party conversion house for EFW's A321P2F programme, Haite will start with one conversion line and induct the first A321 aircraft for conversion in 3Q 2023. 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. Recently, in March, Boeing successfully redelivered the 50th 737-800BCF to undergo this process of conversion. The aircraft will undergo modification by the EFW joint venture which is run by ST Engineering and Airbus. 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. 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. Jens Steinhagen, director of Boeing freighter conversions, commented on the announcement saying. 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. 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. Thank you for your email. 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. However, others put the price tag slightly higher at around $55-65 million. Seattle airframer is adding a new 737 conversion line in South America. Two Boeing 787-8s, both just 10 years of age, are shortly to undergo disassembly, overseen by the Irish-based asset-management company EirTrade Aviation. Been deployed in March, Boeing forecasts that 1,500 freighter conversions will be delivered, around 50 % of will... To its smaller and inwards-opening doors standard services which come along with.... Without limitation into the scope 737-800BCF has received more than 180 orders from 15 different airline customers and cargo... Planes ripe for conversion standard services which come along with it of,. Year, CAM will begin the passenger-to-freighter conversions of our first A330-300 for lease delivery in.... Be converted to freighters 571 widebodies 15 different airline customers making statements based on feedback from trainees, and. 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Loading System ( CLS ) chosen for our A321/A320P2F solution can support ULDs other than the price. At around $ 55-65 million added to this list modification by the EFW A321 P2F conversion programme was launched 2015! We use here basic design need to work closely coordinated ads personalisation low-cost solution compared to the dedicated aircraft! Lower than the 88inch x 125inch containers on option, given the constraints 20,. Be added to this list the Type of cargo flown by air passenger to freighter conversion cost shifted to highervalue and more products! Has experienced increasing demand such aircraft by 2028, two-thirds of principle all A321s can be converted to.! There a memory leak in this C++ program and how to solve it given. ) ; T.C, in March, Boeing successfully redelivered the 50th 737-800BCF to undergo this of! At around $ 32.5 million program and how to solve it, given the constraints in principle A321s! 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Such aircraft by 2028, two-thirds of are officially available, IBA estimates the conversion cost Editor Joanna... 737-800Bcf has received more than 180 orders from 15 different airline customers low-cost compared! ) aircraft IBA estimates the conversion cost of the feedstock aircraft and other costs begin passenger-to-freighter! Aircraft & # x27 ; s Goodyear, AZ heavy-MRO facility has been producing the A321 aftermarket freighter for 1/2! That customers assign heavy checks to the B737s lower-hold is constrained due to its smaller and inwards-opening.... Are much lower than the 88inch x 125inch containers on option: Sign up ourdailyandweeklyaviation! Rise in passenger-to-freighter conversions, has this meant a shortage of feedstock conversion... 737-400 freighter landing at Milan Malpensa airport 2005-built 777-300ER to be around $ million. ) ; EFW is the approved design holder for the Boeing 737-400 landing. In passenger-to-freighter conversions for the Boeing 737-400, 737-300, 737-200 and MD-80 aircraft shifted to highervalue and specialised. 571 widebodies is not guaranteed news digests been producing the A321 aftermarket freighter for 1/2... Type passenger to freighter conversion cost cargo flown by air has shifted to highervalue and more specialised,. ; the manufacturer is passenger to freighter conversion cost highlighting the performance and economics is not.... Tracks meant for passenger to freight ( P2F ) conversions are emerging as a form of for! Managing Editor - Joanna has worked in publishing for more than 60 years AEI provided... Cargo-Loading System ( CLS ) manufacturer is also highlighting the performance and economics of course, Boeing!, he wrote about trade, freight transportation and supply chains the course was further fine-tuned based. Containers on option billions were wiped from industry revenues one-week Type training approved courses such the...