Of course, whether Boeing continues to offer the -300F is not guaranteed. 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. Boeing is adding capacity to convert old 737 passenger planes into cargo haulers, a bet on continued growth in e . With regards to the final payload figure, we explain to the customers that this is always MSN-specific due to the midlife service growth / weight increase by individual aircraft history. Covid-19 has strongly affected the aerospace industry. 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. Cargo conversion for their own cargo unit might speed up LH getting rid of their 747-8i fleet 10-15 years from now. Once all tests have been successfully passed the aircraft can be released to service. That is why we request all relevant documentation and data access from our customers well in advance to each slot-in. It also has an A330 production facility in Dresden. Singapore-based ST Engineerings aircraft management business will lease up to five Airbus A321P2F converted freighters to US start-up Global Crossing Airlines, with deliveries to begin in 2022. However, predictions are that by 2025, this will have more than doubled, potentially reaching close . San Diego, California, Wednesday October 16th, 2019. 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. Examples: - Small: US$10-$12 million - Medium nnarrowbody: US$15-$20 million - Medium widebody: US$20-$30 million - Large: US$55-$65 million You can learn more about the cookies we use here. 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. Use MathJax to format equations. A shortage of passenger-jet belly capacity. P2F conversions serve as a form of investment for airline companies. Stack Exchange network consists of 181 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers. Ethan has advised banks, lessors, airlines and other investors on some of the largest and most ground-breaking aviation transactions in the APAC region over the past decade. 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. for interlining with smaller freighters such as the BAE146/AvroRJ). As such, there appears to be a demand/supply equilibrium currently in terms of aircraft available for conversion. 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. The average conversion cost for the Boeing 767-300ER is US$14.7 million, compared to US$18.4 million for the A330-300. The facility is set to come online at some point in 2022. In order to avoid additional cost, the airframes sourced by the customers should ideally be the upper Type-Certified Weight Variants (WV) and be equipped with the most recent avionics hardware and software. The course was further fine-tuned, based on feedback from trainees, instructors and invigilators. The 777-300ERSF, will produce a significant impact on the market, he adds; It will not be a three-figure million number to put that on the ramp, he says, noting that it can do what the 777F does, at lower cost and with much more volume. Please enter a different email address. Average conversion costs are generally lower for Boeing than Airbus, with the Boeing 737-800 averaging US$4.16 million and the Boeing 757-200 at US$5.2 million, compared to US$6.14 million for the A321-200. Clearly it is the absence of belly-hold capacity that is keeping rates buoyant. CAM expects to convert and lease 30 such aircraft by 2028, two-thirds of . This website uses cookies to improve your experience and for ads personalisation. When the cost of the feedstock aircraft and other costs. T.C. Drift correction for sensor readings using a high-pass filter. RELATED NEWS: Is the A330F main deck cargo compartment pressurized? Typically the RJ100 can be bought for between $1.5m and the freighter kit and conversion would cost between $2.2 and 2.8m. Thank you for your email. 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. This a key milestone for "the Big Twin". 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. How much does it cost if someone falls ill before take-off? Such interest has led to a surge in demand for aircraft prime for conversion, as well as slots for the conversion itself. The addition of Haite will give EFW its fourth production lines for the narrowbody freighter. PREVIOUS NEWS STORY. DHL Express has firm orders for eight A330-300P2F units in total, with additional options to receive another 10. Ethan Tanis an experienced aviation lawyer with deep expertise in aviation finance as well as all varieties of aviation-related work. 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. 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()); 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. In such cases upgrade requests are closely coordinated with EFWs and Airbus Upgrade Services teams, with EFW acting as the MRO to install any required Service Bulletin (SB) kits as part of its additional services for the customer. What does the future of aviation look like in 2022? Space-efficient door configuration googletag.defineSlot('/21776187881/fw-responsive-main_content-slot2', [[468, 60], [728, 90], [300, 100], [320, 50]], 'div-gpt-ad-1665767472470-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); The number of distinct words in a sentence. How much does the design, implementation, test and certification of a Passenger-to-Freighter Conversion cost? Sanctions briefing looking back at 2022 and whats on the horizon for 2023? But with the US Air Force having an eventual requirement for 179 KC-46 tankers, the orderbook will be periodically topped up over the coming years. T.C. gptAdSlots.push(gptSlot); Demand for passenger-to-freighter conversions pre-dates the pandemic, largely driven by the express parcel carriers and their need to update their fleets of smaller freighters, but the pandemic has added a further surge in demand. Learn more about Stack Overflow the company, and our products. CII whats the impact on the shipping industry? This creates an opportunity for . Is lock-free synchronization always superior to synchronization using locks? I did not know that was a word. 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. An early passenger B747-400 may be acquired for $30 million-$35 million and converted for $16 million. Doing so minimises variations and complexity within this fleet, compared with having different aircraft build standards. Andreas Hermann, Airbus VP and a member of the EFW shareholder committee comments: The Airbus A321 is the platform which, by design, offers the best economics, cargo capacity and performance in the single-aisle freighter segment going forward. 2023 Reed Smith LLP. Thanks for contributing an answer to Aviation Stack Exchange! 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. Conversions are being driven by the growth of e-commerce which has been boosted by more online deliveries during lockdowns, it notes. When the cost of the feedstock aircraft and other costs are factored in, it puts the total outlay at around $54.5 million for an aircraft that will be able to carry a little over 100t. CAM expects to convert and lease 30 such aircraft by 2028, two-thirds of . China's narrowbody focus could give way to a more internationalized widebody conversion market. In 2011, PAS developed, certified and produced a Boeing 757-200PCC combined passenger/freighter (combi) variant for CAM. Duke sees the A340-300 as a model particularly well-suited to the LCF concept. Aircraft conversions are technically challenging and require precise material planning. How much does it cost to ground a B737 max aircraft for an airline? 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). 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()); The A320/A321P2F are the only converted freighters in the narrowbody segment to feature digital fly-by-wire technology with enhanced volume efficiency and the ability to accommodate bulk cargo or containerised freight in the belly holds, delivering maximum loading flexibility. If this is not the case upgrades can be installed which can be coordinated with Airbus and EFWs respective upgrade services teams. 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. requires aircraft-specific adaptations to the standard design. MSN no.) Contacts. All such deviations from the basic design need to be checked and incorporated into the scope. Airframe overhaul facilities are scrambling to keep up with the demand for converting used passenger jets into dedicated cargo jets. Over the past 30 years, about 50 to 70 passenger-to-freighter conversions took place each year. As a rule of thumb: target prices for 20-year old converted freighter is 25%-30% of same size new freighter. Plus, I learned a new word! By Mike Bryant. Conversion specialists set a record last year with more than 170 overhauled airframes, up from a record 120 conversions in 2021 and triple the amount completed in 2019, according to an estimate by aviation analytics firm Cirium. Few options remain at largest end of the market. 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 Cargo deck with container and flexible Cargo Loading System (CLS). 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. At the turn of the year passenger aircraft utilisation rates were around half pre-pandemic levels; during that same period freighter utilisation rates had trended upwards from around 100,000 flights per month in January 2019 to a little over 120,000 by the same month this year. 70 Passenger-to-Freighter conversions took place each year B737 max aircraft for an airline used... 2011, PAS developed, certified and produced a Boeing 757-200PCC combined passenger/freighter ( combi ) variant for cam can. 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Your experience and for ads personalisation receive another 10 20-year old converted is! Conversion market have more than doubled, potentially reaching close -300F is not guaranteed million, compared to $... Variant for cam freighter kit and conversion would cost between $ 2.2 and 2.8m to Passenger-to-Freighter... And complexity within this fleet, compared with having different aircraft build standards cost for the A330-300 cam to. Conversion cost to convert old 737 passenger planes into cargo haulers, a on! The narrowbody freighter demand for aircraft prime for conversion units in total, with additional options receive! The A340-300 as a rule of thumb: target prices for 20-year old freighter! Implementation, test and certification of a Passenger-to-Freighter conversion cost lock-free synchronization always superior to synchronization using locks a equilibrium! 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