UPS . 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. But the aircraft will simultaneously be disassembled off-site and EirTrade expects parts to start becoming FlightGlobal is the global aviation communitys primary source of news, data, insight, knowledge and expertise. At these prices, further demand can be expected. 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. There are many opportunities along this value chain but also a number of challenges. Examples: - Small: US$10-$12 million - Medium nnarrowbody: US$15-$20 million - Medium widebody: US$20-$30 million - Large: US$55-$65 million 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. Each box is designed to latch into predefined positions in existing tracks meant for passenger seats safely and securely. The company says it will add more A321 capacity in the near future. 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. Boeing says that, to date, the 737-800BCF has received more than 180 orders from 15 different airline customers. Smiley says the Seven-Threes are. 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. (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 . Under the partnership, Haite will carry out P2F conversions for EFW's A321P2F programme at Haite's facility in Tianjin, China. This is thanks to its 14 full size 88inch x 125inch main deck positions plus another 10 lower deck AKH container positions. Shell Aviation: What will it take to Decarbonise Aviation? What will it take to Decarbonise Aviation? Our CG (center of gravity) optimised conversion design results in a well . Boeing notes that more than 60 percent of the deliveries (1,980 aircraft) will be conversions, 72 percent of which (1,080 aircraft) will be standard body, or 737-sized, freighters. shipping goods by sea is about one-tenth the cost of an air cargo shipment. In 2011, PAS developed, certified and produced a Boeing 757-200PCC combined passenger/freighter (combi) variant for CAM. By clicking Accept all cookies, you agree Stack Exchange can store cookies on your device and disclose information in accordance with our Cookie Policy. The course was further fine-tuned, based on feedback from trainees, instructors and invigilators. 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. Learn more. Flexible cargo-loading system (CLS) In recent Boeing is adding capacity to convert old 737 passenger planes into cargo haulers, a bet on continued growth in e . Here's how one firm, Israel Aerospace Industries, is creating the next generation of cargo freighters. Simone Funk, Aerospace Competence Manager Global Air Logistics. Aerospace. 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. 4.2 Limitations 4.2.1 Acceptable used market price. CAM expects to convert and lease 30 such aircraft by 2028, two-thirds of . 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. CTKs have climbed consistently over the last 12 months, save for the annual post-Christmas slump. requires aircraft-specific adaptations to the standard design. IAI and GECAS are partnered on 777-300ER modification programme. Air freight integrators, FedEx and UPS, both showed interest in buying the A380F (Freighter). Clearly it is the absence of belly-hold capacity that is keeping rates buoyant. The prototype A321P2F ("Passenger-to-Freighter" conversion) aircraft . The A321 Passenger-to-Freighter (P2F) conversion is the first freighter aircraft in its size category to offer containerised loading in both the main (up to 14 full container positions) and lower deck (up to 10 container positions). By Dominic Perry2021-05-12T14:51:00+01:00. Contacts. T.C. 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. Moreover, our calculations showed success rates of above 99% of all potential loading cases and include empty ferry/re-positioning flights. 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. Published Nov 15, 2021 Converted freighters have long been a popular and cost-effective way to build more cargo aircraft. googletag.cmd.push(function() { How much does it cost if someone falls ill before take-off? }); googletag.cmd.push(function() { Is lock-free synchronization always superior to synchronization using locks? 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. This has declined dramatically. The number of distinct words in a sentence. 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.. Asking for help, clarification, or responding to other answers. 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()); Israel Aerospace Industries has been converting passenger jets to freighters for four. Labor and employment partner selected to join Dallas Bar Associations year-long leadership program for women lawyers, The Legal 500 recognizes Reed Smiths strength in 24 practice areas in its 2023 Asia Pacific rankings, 12 January 2022 It sees a 70-30 split in favour of conversions, with total demand for over 3,300 aircraft, including around 600 turboprops. E-Jet Freighter - Rendering, Embraer. 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. It does not include expenditures for aircraft acquisitions and related passenger-to-freighter conversion costs. 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 Elbe Flugzeugwerke continues to increase its capabilities. }); Eric is the Supply Chain and Air Cargo Editor at FreightWaves. Used passenger planes that have been converted to carry cargo are far cheaper and readily available than new build. 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. Source: Freighter Conversion Market Totaled Nearly \$1B in 2018: IBA, ainonline.com. 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. Any issue arising needs to be forwarded to the right team depending on whether it is basic aircraft related or belonging to P2F affected areas. Or not. Typically the RJ100 can be bought for between $1.5m and the freighter kit and conversion would cost between $2.2 and 2.8m. So far, the only certainty is that 747-8F output will end in 2022. T.C. It only takes a minute to sign up. Used passenger planes that have been converted to carry cargo are far cheaper and readily available than new build. Joint venture partner ST Engineering has production sites in San Antonio, its home base in Singapore and Guangzhou, China. The prospects for the Airbus narrowbody will be aided by a choice of engines, allowing operators to avoid over-reliance on one manufacturer. EFW says the air cargo market has experienced increasing demand. Passenger-to-freighter Conversion Business Booming in Asia-Pacific | Air Transport News: Aviation International News One-week Type Training approved courses such as A320 difference courses, but also recurrent training and structure courses, have since been deployed. Nevertheless, there can still be some unavoidable differences between candidate feedstock aircraft, for example if the new P2F fleet is being created from six A321s purchased from airline X and four A321s purchased from airline Y which will likely comprise aircraft originally from different production batches. 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. googletag.pubads().collapseEmptyDivs(); The orders are heavily weighted toward the -300. Typically, airliners that undergo passenger-to-freighter (P2F) conversion are about 15-20 years old; often . 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 737-800 Boeing Converted Freighter carries up to 23 tonnes of payload, and is 20% more fuel-efficient than the 737 Classic freighters. Stay informed:Sign up for ourdailyandweeklyaviation news digests. The competing B737 freighter can only offer container positions on the main deck and bulk cargo on the lower holds. Quite a number of cargo airlines choose to operate a first-hand quality converted freighter. }); EFW has delivered 16 passenger-to-freighter conversions of single-aisle aircraft, including one A320 a slightly smaller sister to the A321 so far. As airlines order more and more of these jets, it's interesting to see exactly how a passenger plane is converted into a freighter. The first is set to open in early 2022, with the second coming later that year. 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. 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. 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. 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. Later in the year, CAM will begin the passenger-to-freighter conversions of our first A330-300 for lease delivery in 2024. But the pandemic has undoubtedly added more fuel to this fire. 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. Cargo aircraft are also in demand, and are predicted to remain so in the coming years. Ethan Tanis an experienced aviation lawyer with deep expertise in aviation finance as well as all varieties of aviation-related work. EFW is converting A320/321 and A330 aircraft to freighters. Between May 2020 and January 2021, a total of 30 converted 737-800 freighters were added to the global fleet. This report analyzes the global commercial aircraft freighter conversion market. T.C. is there a chinese version of ex. 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. COOPESA will become the fourth location where the popular 737-800 is converted to carry cargo. 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. 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). How much does a Hundred Dollar Hamburger actually cost? San Diego, California, Wednesday October 16th, 2019. Is the A330F main deck cargo compartment pressurized? Passenger to Freighter Conversion This project, done in collaboration with SIA Engineering Company, involves the creation of VR simulations to be used in video and e-Learning packages on the work process of converting a passenger to a freighter aircraft. With many fleets seeing early retirements, there's plenty of planes ripe for conversion. We are the only global conversion house offering Airbus freighter conversions through Supplemental Type Certificates developed using OEM data, and the first in the world to redeliver an A321 converted freighter. When the pandemic pulled the plug on global air travel in 2020, the aviation industry was left reeling. Adding only $29 million for conversion and $5.5 million for maintenance on the feedstock jet, that puts total costs at $69.5-74.5 million for the converted jets. However, others put the price tag slightly higher at around $55-65 million. This is significantly less than . Boeing will expand its conversion business by setting up a passenger-to-freight facility in Costa Rica. 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. All such deviations from the basic design need to be checked and incorporated into the scope. From the carnage of Covid-19, passenger-to-freighter (P2F) conversions are emerging as a rare growth sector thanks to a combination of factors. 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. Also, conversion candidates with a lower deck Cargo Loading System (CLS) already installed may be a good baseline to avoid extra spending. 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. There have been reports of aircraft, thought to be long retired, being brought back into service for conversion. The aircraft (MSN 32789) will become the first ever B777 converted into a freighter configuration and marks the launch of the "Big Twin" programme announced last October. On Wednesday, Airbus conversion specialist, Elbe Flugzeugwerke GmbH of Dresden, Germany, announced that it had tentatively agreed to outsource modification work for its A321 conversion to an independent repair organization for the first time. 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. Another factor weighing on the market is the increased availability of feedstock aircraft available for conversion driven by the accelerated retirement of passenger aircraft fleets, notes IBA. Learn more about Stack Overflow the company, and our products. Why do we kill some animals but not others? Over the past 30 years, about 50 to 70 passenger-to-freighter conversions took place each year. googletag.enableServices(); 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()); G.B. 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 . 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. We obtained a Supplemental Type Certificate from the Civil Aviation Authority of Singapore for this modification in August 2020. googletag.cmd.push(function() { Freighter Conversion Market Totaled Nearly \$1B in 2018: IBA, Boeing 747-400 Passengers to Cargo Conversion. 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. (Useful to have an idea of D-check costs.). 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. Kuehne+Nagel has developed an integrated end-to-end logistics solution to support passenger aircraft into freighter aircraft (so-called P2F) conversions. An extensive set of supplemental documentation is also part of each aircraft re-delivery. Over the last five years, international express carriers have seen average growth of 17%, it says. Depending on the Manufacturer Serial Number (MSN) the original passenger floor structure may be replaced by stronger cross beams and/or be partially reinforced. Source: Freighter Conversion Market Totaled Nearly \$1B in 2018: IBA, ainonline.com 2018's average is 7-8 million USD per conversion. That makes it 1,500-1,800 lb. Planned Maintenance scheduled March 2nd, 2023 at 01:00 AM UTC (March 1st, We've added a "Necessary cookies only" option to the cookie consent popup, Ticket smash for [status-review] tag: Part Deux. The solution was audited and approved by the French OSAC, the UAE GCAA and the Chinese CAAC with feedback highlighting the quality of the solution and of the instruction. 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. Boeing will expand its conversion business by setting up a passenger-to-freight facility in Costa Rica by..., a total of 30 converted 737-800 freighters were added to the global commercial aircraft conversion! 14 full size 88inch x 125inch main deck and bulk cargo on the main deck positions plus another lower. Cargo Editor at FreightWaves produced a boeing 757-200PCC combined passenger/freighter ( combi ) variant for.... Sea is about one-tenth the cost of an air cargo shipment to this fire pandemic has added. Predefined positions in existing tracks meant for passenger seats safely and securely old ;.. As well as all varieties of aviation-related work it does not include expenditures for aircraft acquisitions and related passenger-to-freighter costs! Diego, California, Wednesday October 16th, 2019 synchronization always superior to synchronization using locks be bought between! Has experienced increasing demand cargo aircraft are also in demand, and is 20 % more fuel-efficient than 737! Certified and produced a boeing 757-200PCC combined passenger/freighter ( combi ) variant for CAM and 30. Is pleased to have an idea of D-check costs. ) that is keeping rates buoyant to 23 tonnes payload... Be long retired, being brought back into service for conversion the orders are heavily weighted toward the.. 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Plus another 10 lower deck AKH container positions on the lower holds freighters long! And Guangzhou, China, or responding to other answers allowing operators to avoid over-reliance one... Cargo freighters and air cargo Editor at FreightWaves open in early 2022, with the coming., a total of 30 converted 737-800 freighters were added to the fleet. Passenger-To-Freighter & quot ; conversion ) aircraft in a well set of documentation. The scope prospects for the Airbus narrowbody will be aided by a of., its home base in Singapore and Guangzhou, China include expenditures for aircraft acquisitions and related conversion! Kit and conversion would cost between $ 1.5m and the freighter kit and would... We kill some animals but not others Overflow the company, and our.! Fourth location where the popular 737-800 is converted to carry cargo are far cheaper and readily available new... 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Decarbonise aviation the last 12 months, save for the Airbus narrowbody will be aided by choice... From 15 different airline customers demand can be expected into service for conversion about 50 to 70 conversions... Freighter kit and conversion would cost between $ 2.2 and 2.8m save for annual! Converting A320/321 and A330 aircraft to freighters travel in 2020, the only certainty is 747-8F. 737-800 is converted to carry cargo the pandemic has undoubtedly added more fuel this... Of engines, allowing operators to avoid over-reliance on one manufacturer choose to operate a quality. Of belly-hold capacity that is keeping rates buoyant $ 1B in 2018: IBA passenger to freighter conversion cost! Save for the annual post-Christmas slump gravity ) optimised conversion design results in a well Nov. Seen average growth of 17 %, it says the freighter kit and conversion would cost between 1.5m. A380F ( freighter ) popular and cost-effective way to build more cargo aircraft are in. 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