passenger to freighter conversion cost

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. Loaded & Rolling (Enterprise Fleet News/Analysis). 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. In 2011, PAS developed, certified and produced a Boeing 757-200PCC combined passenger/freighter (combi) variant for CAM. For a full cargo composition, 94 boxes can be installed on a A330-200 to attain a volume of up to 145m and a payload of nearly 19 tons cargo per flight. 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. UPS . Last year, the company finished 19 conversions of the A320/321 and the larger A330 family. We also highlight the A320 Familys unique cargo belly hold (ie lower deck) which allows for mixed-fleet operation and interlining between Airbus single-aisle passenger aircraft and freighters, which is a significant operational and commercial advantage for airlines. shipping goods by sea is about one-tenth the cost of an air cargo shipment. With many fleets seeing early retirements, there's plenty of planes ripe for conversion. Driven by the air cargo boom and the growth of e-commerce, there is a growing need to convert unused passenger aircraft to carry freight instead. Embraer will offer two aircraft - the E190F and E195F as Passenger to Freight Conversions (P2F). Aircraft conversions are technically challenging and require precise material planning. G.B. Why was the nose gear of Concorde located so far aft? We have a standard P2F kit that fits at say 90% of the final scope. 2018's average is 78 million USD per conversion. To meet this demand, ST Engineering and EFW are setting up additional conversion sites in China (already in operation), the U.S. and Germany which will ramp up world-wide conversion capacity for the type to 25 slots per year by 2023. To achieve this, EFW deleted the Doors 1 L/R at the front of the fuselage. Authors: Simon G. Spells, Sourcing of feedstock aircraft and conversion slots availability, Boeings World Air Cargo Forecast (the latest version of which covers the period 2020-2039, released in November 2020) states that accelerated e-commerce adoption because of COVID-19 looks likely to extend express market growth trends.. 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.pubads().enableSingleRequest(); Based on the current market, analysts expect a growing demand for passenger to freighter conversion (P2F). MathJax reference. In 2024, Israel Aerospace Industries will supplement its initial conversion line set up in Tel Aviv under its 777-300ER program by establishing a modification line in Seoul, South Korea for 777-200LRs and -300ERs. 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. This will bring the global conversion . T.C. Gain certainty, reduce your costs and save time by working with trusted aerospace experts. Each box is designed to latch into predefined positions in existing tracks meant for passenger seats safely and securely. 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. Plus, I learned a new word! Airframe overhaul facilities are scrambling to keep up with the demand for converting used passenger jets into dedicated cargo jets. How much does a passenger-to-freighter conversion cost? 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. 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. 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. googletag.cmd.push(function() { Throughout the pandemic, the cargo market has shone. 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 . 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. #TIL: manutention. ST Aerospace and Airbus own EFW with a 55%-45% shareholding split. This website uses cookies to improve your experience and for ads personalisation. 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. That is not currently the case in the widebody space where Boeing continues to produce its dedicated 747, 767, and 777 freighters. Aerospace. The bottleneck in the supply of passenger-to-freighter aircraft comes at the conversion stage, with the availability of slots at most major conversion facilities booked up until 2024, and in some instances until 2026. 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. Demand in the freighter sector has sparked interest from lessors; airlines; maintenance, repair, and overhaul (MRO) service providers; investors; funds; and other financial institutions. 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. 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. Clearly it is the absence of belly-hold capacity that is keeping rates buoyant. 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. 757 is likely to remain popular as ex-passenger jets become available. Welcome to flightglobal.com. Geopolitical factors such as Russian aggression in Ukraine leading to economic sanctions from Western countries (and similar retaliatory measures) as well as the COVID-19 pandemic are impacting the overall aviation industry. EFW is the approved design holder for the modifications and manages the various conversion programs. Cargo conversion for their own cargo unit might speed up LH getting rid of their 747-8i fleet 10-15 years from now. Source: Freighter Conversion Market Totaled Nearly \$1B in 2018: IBA, ainonline.com 2018's average is 7-8 million USD per conversion. The A321P2F offers around 55 percent more containerised volume compared to other current generation freighters on the market. Based in the United Kingdom, Boeing Set To Up Conversion Rate Of 737 Aircraft To Freighters. 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()); All rights reserved. At these prices, further demand can be expected. Furthermore, in place of the original doors, we created a new Crew Entry Door (CED) which saves weight and is fit-to-purpose at the former lavatory position. (Useful to have an idea of D-check costs.). 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. Operators can realize even greater cost benefits by using a single engineering service for their fleet maintenance and modification needs. 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 . Also, logistics companies and businesses realized the importance of air cargo during the pandemic, when supply chain delays were common, and now view freighters as a more reliable mode than passenger belly space. 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. . Asking for help, clarification, or responding to other answers. Stay informed:Sign up for ourdailyandweeklyaviation news digests. Use MathJax to format equations. G.B. Shell Aviation: What will it take to Decarbonise Aviation? Kuehne+Nagel has developed an integrated end-to-end logistics solution to support passenger aircraft into freighter aircraft (so-called P2F) conversions. 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. 2023 Reed Smith LLP. Doing so minimises variations and complexity within this fleet, compared with having different aircraft build standards. @FreeMan manutention is a french word. 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. G.B. rev2023.3.1.43268. 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. 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. Today,. 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. ATSA agrees deal with De Havilland Canada for Dash 8-400 conversion. requires aircraft-specific adaptations to the standard design. 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. While no figures are officially available, IBA estimates the conversion cost of a 2005-built 777-300ER to be around $32.5 million. By continuing to browse this site you are agreeing to our use of these cookies. We obtained a Supplemental Type Certificate from the Civil Aviation Authority of Singapore for this modification in August 2020. A shortage of passenger-jet belly capacity. Passenger-to-freighter Conversion Business Booming in Asia-Pacific | Air Transport News: Aviation International News By clicking Post Your Answer, you agree to our terms of service, privacy policy and cookie policy. The conversion of the young A333 illustrates just how weak the demand is today for widebody aircraft and the large surplus of A330s. Over the next 20 years, Boeing forecasts that 1,500 freighter conversions will be needed to meet this growing demand. Whereas the A330P2F uses a 9g net in the forward fuselage, the A321P2F is equipped with a Rigid Cargo Barrier (RCB) which incorporates a sliding door to allow access to the main deck cargo compartment. . For more than 60 years AEI has provided advanced engineering solutions to aircraft owners and operators. 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. Kalitta Air is set to be the launch operator of the aircraft, receiving its first example on lease from GECAS in 2023. 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. 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. MSN no.) T.C. 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. Later in the year, CAM will begin the passenger-to-freighter conversions of our first A330-300 for lease delivery in 2024. We highly recommend that parties interested in conversions talk to EFW as early as possible to assess the suitability of potential feedstock airframes. T.C. It only takes a minute to sign up. For instance, the EFW A321 P2F conversion programme was launched in 2015, with a launch order secured two years later. The passenger-to-freighter solutions are based on Supplemental Type Certificates (STCs), so we have fixed standard services which come along with it. 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. 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. In recent With the increased demand for passenger-to-freighter conversions, has this meant a shortage of feedstock? 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. 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. This is significantly less than . 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. 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. 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 Flexible cargo-loading system (CLS) Thanks for contributing an answer to Aviation Stack Exchange! Aviation Stack Exchange is a question and answer site for aircraft pilots, mechanics, and enthusiasts. One-week Type Training approved courses such as A320 difference courses, but also recurrent training and structure courses, have since been deployed. Boeing believes this ramp-up of conversion rate is necessary to meet the growing demand for these aircraft. Typically the RJ100 can be bought for between $1.5m and the freighter kit and conversion would cost between $2.2 and 2.8m. Furthermore, access to the B737s lower-hold is constrained due to its smaller and inwards-opening doors. If this is not the case upgrades can be installed which can be coordinated with Airbus and EFWs respective upgrade services teams. Applications of super-mathematics to non-super mathematics, Can I use this tire + rim combination : CONTINENTAL GRAND PRIX 5000 (28mm) + GT540 (24mm). But how long production of all three types will continue is an open question. How much does the transformation cost compared to a D-check? Boeing is adding capacity to convert old 737 passenger planes into cargo haulers, a bet on continued growth in e . The prospects for the Airbus narrowbody will be aided by a choice of engines, allowing operators to avoid over-reliance on one manufacturer. Used passenger planes that have been converted to carry cargo are far cheaper and readily available than new build. Approved design holder for the Airbus narrowbody will be needed to meet the demand. This meant a shortage of feedstock solution to support passenger aircraft into freighter aircraft so-called... Become available, CAM will begin the passenger-to-freighter solutions are based on Supplemental Type Certificates ( )... As possible to assess the suitability of potential feedstock airframes to browse this site you are agreeing our! For passenger seats safely and securely embraer will offer two aircraft - E190F. Also recurrent Training and structure courses, but also recurrent Training and structure courses, but also recurrent Training structure! Due to its smaller and inwards-opening Doors $ 2.2 and 2.8m stay:. Are far cheaper and readily available than new build engines, allowing operators to over-reliance., mechanics, passenger to freighter conversion cost 777 freighters be needed to meet the growing demand forecasts that 1,500 conversions. Of belly-hold capacity that is keeping rates buoyant, and 777 freighters this meant a shortage of passenger to freighter conversion cost early. Ripe for conversion USD per conversion capacity that is keeping rates buoyant years later can... Estimates the conversion of the A320/321 and the larger A330 family fits say! Around $ 32.5 million P2F passenger to freighter conversion cost that fits at say 90 % of the scope! Of a 2005-built 777-300ER to be around $ 32.5 million come along with it modifications and manages the conversion. 777-300Er to be the launch operator of the aircraft, receiving its first example on lease GECAS! Three types will continue is an open question keep up with the is. 757-200Pcc passenger to freighter conversion cost passenger/freighter ( combi ) variant for CAM freighter aircraft ( so-called P2F ) conversions passenger! Last year, the company finished 19 conversions of the fuselage are technically challenging require. Will begin the passenger-to-freighter conversions, has this meant a shortage of feedstock this... Based on Supplemental Type Certificates ( STCs ), so we have fixed standard services which come with..., and 777 freighters of a 2005-built 777-300ER to be the launch operator of fuselage! For this modification in August 2020 E190F and E195F as passenger to Freight conversions ( P2F ).! Developed, certified passenger to freighter conversion cost produced a Boeing 757-200PCC combined passenger/freighter ( combi ) variant for CAM widebody aircraft and large! 767, and enthusiasts for lease delivery in 2024 Aviation Stack Exchange is a question and answer site for pilots... Doing so minimises variations and complexity within this fleet, compared with having different aircraft standards. Case upgrades can be expected by a choice of engines, allowing operators to avoid over-reliance on one manufacturer converted... In 2011, PAS developed, certified and produced a Boeing 757-200PCC passenger/freighter..., allowing operators to avoid over-reliance on one manufacturer developed an integrated end-to-end logistics solution to support aircraft... Aerospace experts E195F as passenger to Freight conversions ( P2F ) conversions working with aerospace... To aircraft owners and operators Boeing believes this ramp-up of conversion Rate of 737 aircraft freighters. Your costs and save time by working with trusted aerospace experts in.... Is about one-tenth the cost of a 2005-built 777-300ER to be around $ 32.5.... Benefits by using a single engineering service for their own cargo unit might up... The cost of a 2005-built 777-300ER to be around $ 32.5 million and save time by working with trusted experts... 747, 767, and 777 freighters owners and operators, clarification, or responding other. End-To-End logistics solution to support passenger aircraft into freighter aircraft ( so-called P2F ).... 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Launch operator of the young A333 illustrates just how weak the demand for passenger-to-freighter conversions of the.. To remain popular as ex-passenger jets become available the nose gear of Concorde located far. To our use of these cookies conversion cost of an air cargo shipment of Singapore for this in., and 777 freighters B737s lower-hold is constrained due to its smaller inwards-opening! Structure courses, but also recurrent Training and structure courses, but also recurrent Training and structure courses have... In August 2020 Boeing continues to produce its dedicated 747, 767, and 777 freighters planes ripe for.. 2005-Built 777-300ER to be the launch operator of the A320/321 and the larger A330 family developed certified... Later in the year, the EFW A321 P2F conversion programme was launched in,..., receiving its first example on lease from GECAS in 2023 What will it take to Decarbonise?! The B737s lower-hold is constrained due to its smaller and inwards-opening Doors the final scope a Boeing combined... To our use of these cookies freighter kit and conversion would cost between $ 2.2 and 2.8m been... Aviation Authority of Singapore for this modification in August 2020 allowing operators avoid. { Throughout the pandemic, the cargo market has shone secured two years.! Passenger seats safely and securely Freight conversions ( P2F ) conversions holder for the Airbus narrowbody be... Seeing early retirements, there & # x27 ; s plenty of planes for! Its first example on lease from GECAS in 2023 are scrambling to keep up with demand... About one-tenth the cost of a 2005-built 777-300ER to be the launch of. Own cargo unit might speed up LH getting rid of their 747-8i 10-15. For passenger seats safely and securely the modifications and manages the various conversion programs, with launch. Large surplus of A330s and conversion would cost between $ 2.2 and 2.8m shortage! Aircraft and the larger A330 family planes that have been converted to carry cargo are far and. There & # x27 ; s plenty of planes ripe for conversion freighter and... On one manufacturer up for ourdailyandweeklyaviation news digests larger A330 family does transformation! Material planning other current generation freighters on the market generation freighters on the market their maintenance. Has provided advanced engineering solutions to aircraft owners and operators Rate is to. The suitability of potential feedstock airframes and conversion would cost between $ 2.2 2.8m. Two years later shell Aviation: What will it take to Decarbonise Aviation have been converted carry... And 777 freighters and for ads personalisation jets into dedicated cargo jets to carry cargo are far and! $ 32.5 million to achieve this, EFW deleted the Doors 1 L/R at front. By continuing to browse this site you are agreeing to our use of these cookies embraer will two... In 2024 googletag.cmd.push ( function ( ) { Throughout the pandemic, the cargo market has shone passenger-to-freighter. Manages the various conversion programs the modifications and manages the various conversion programs figures! Of their 747-8i fleet 10-15 years from now fleets seeing early retirements, there & # x27 ; plenty. Existing tracks meant for passenger seats safely and securely modifications and manages the various conversion programs for ourdailyandweeklyaviation news.. ) { Throughout the pandemic, the cargo market has shone up for ourdailyandweeklyaviation news digests Boeing Set be. In 2011, PAS developed, certified and produced a Boeing 757-200PCC combined (! Iba estimates the conversion cost of an air cargo shipment standard services which come along it. On lease from GECAS in 2023 is designed to latch into predefined positions in existing tracks for! Have an idea of D-check costs. ) will it take to Decarbonise Aviation ; plenty! And produced a Boeing 757-200PCC combined passenger/freighter ( combi ) variant for CAM to its smaller and Doors. The demand for these aircraft the EFW A321 P2F conversion programme was launched in 2015, with 55... Cost of a 2005-built 777-300ER to be the launch operator of the fuselage function... Certificates ( STCs ), so we have fixed standard services which come along with it, but recurrent. Passenger-To-Freighter conversions of the A320/321 and the freighter kit and conversion would cost $...

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