Boeing is this year cutting output to two aircraft per month, including an unknown number of 777Xs. 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. 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 Would the reflected sun's radiation melt ice in LEO? A340-300s are out of favor as passenger aircraft . The company has previous experience carrying out freighter conversions on other aircraft types. Managing Editor - Joanna has worked in publishing for more than a decade and is fast becoming a go-to source for commercial aviation analysis. How much does it cost if someone falls ill before take-off? China's narrowbody focus could give way to a more internationalized widebody conversion market. Site design / logo 2023 Stack Exchange Inc; user contributions licensed under CC BY-SA. Depending on demand and build rates, the current-generation jet could continue in production for anywhere up to six years, observers estimate, although at low output levels, near-term slots appear hard to come by. Your email address will not be published. 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. Share this story. Our A321P2F solution has above 28 metric tons (over 61.800 lbs) of proven gross payload, which is more than one ton above the payload others in the market currently offer. T.C. Published Nov 15, 2021 Converted freighters have long been a popular and cost-effective way to build more cargo aircraft. EFW is converting A320/321 and A330 aircraft to freighters. 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. Operators can realize even greater cost benefits by using a single engineering service for their fleet maintenance and modification needs. The 737-800 Boeing Converted Freighter carries up to 23 tonnes of payload, and is 20% more fuel-efficient than the 737 Classic freighters. 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. I did not know that was a word. While no figures are officially available, IBA estimates the conversion cost of a 2005-built 777-300ER to be around $32.5 million. Our optimised conversion design results in a well-balanced freighter that requires tremendously less trimming which, according to Airbus route analysis calculations, can potentially save up to about USD250,000 in fuel cost per year (depending on mission profile). The average conversion cost for the Boeing 767-300ER is US$14.7 million, compared to US$18.4 million for the A330-300. At these prices, further demand can be expected. Typically the RJ100 can be bought for between $1.5m and the freighter kit and conversion would cost between $2.2 and 2.8m. For me, we are most proud of the cooperation of the engineering teams at Airbus, ST Engineering and EFW who together have worked hard to achieve the maximum possible performance for a freighter conversion solution. The passenger-to-freighter solutions are based on Supplemental Type Certificates (STCs), so we have fixed standard services which come along with it. How much does a Hundred Dollar Hamburger actually cost? Our CG (center of gravity) optimised conversion design results in a well . All such deviations from the basic design need to be checked and incorporated into the scope. Single-aisle operators have little choice but converted freighters given the absence of line-built models. 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. Based in the United Kingdom, Boeing Set To Up Conversion Rate Of 737 Aircraft To Freighters. - The passenger-to-freighter solutions are based on Supplemental Type Certificates (STCs), so we have fixed standard services which come along with it. The B757-200PCF offers the lowest Operating Empty Weight available in a B757 freighter at just 115,500-116,000 lb. Asking for help, clarification, or responding to other answers. 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. 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()); Narrowbody conversion costs range from US$2.85m for a Boeing 737-300 through a range of $4.3-6m for a 737-800, up to $6.1m for an Airbus A321-200. 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. For instance, the EFW A321 P2F conversion programme was launched in 2015, with a launch order secured two years later. Also, conversion candidates with a lower deck Cargo Loading System (CLS) already installed may be a good baseline to avoid extra spending. We obtained a Supplemental Type Certificate from the Civil Aviation Authority of Singapore for this modification in August 2020. As airlines order more and more of these jets, it's interesting to see exactly how a passenger plane is converted into a freighter. Why was the nose gear of Concorde located so far aft? #TIL: manutention. low maintenance costs. @FreeMan Yes, as D check. What are some tools or methods I can purchase to trace a water leak? How much does it cost extra to fly with one additional passenger? googletag.cmd.push(function() { The rise in passenger-to-freighter conversions is already starting to generate litigation. That is why we request all relevant documentation and data access from our customers well in advance to each slot-in. Aerospace. Source: Freighter Conversion Market Totaled Nearly \$1B in 2018: IBA, ainonline.com. 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. Eric is based in Portland, Oregon. This a key milestone for "the Big Twin". A good example of cost savings and avoidance is the 747 Special Freighter conversion. For the remaining proportion each individual aircraft (eg. 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. When the cost of the feedstock aircraft and other costs. 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. }); Eric is the Supply Chain and Air Cargo Editor at FreightWaves. CII whats the impact on the shipping industry? 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 lead time pre slot-in is six to eight months, to allow for MSN-specific adaptation design work and kit manufacturing. Joint venture partner ST Engineering has production sites in San Antonio, its home base in Singapore and Guangzhou, China. In all, 2,372 converted aircraft will be required under the Ascend forecast: 454 turboprops, 1,347 single-aisles and 571 widebodies. It also affords their pilots a high level of cockpit and digital fly-by-wire commonality with its larger brother, the A330P2F. Mammoth Freighters, a U.S.-based startup gearing up to modify large 777 aircraft, last year secured production facilities in Fort Worth, Texas, and the U.K. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. 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. Simon Spellsis a partner in the Transportation Industry Group at Reed Smith. With many fleets seeing early retirements, theres plenty of planes ripe for conversion. 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 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. 2023 Reed Smith LLP. Kuehne+Nagel has developed an integrated end-to-end logistics solution to support passenger aircraft into freighter aircraft (so-called P2F) conversions. Please select at least one category to subscribe to. Furthermore, access to the B737s lower-hold is constrained due to its smaller and inwards-opening doors. 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. The planemaker will open two 737-800BCF conversion lines with Cooperativa Autogestionaria de Servicios Aeroindustriales (COOPESA) in Alajuela, Costa Rica. 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 . Under the partnership, Haite will carry out P2F conversions for EFW's A321P2F programme at Haite's facility in Tianjin, China. The course was further fine-tuned, based on feedback from trainees, instructors and invigilators. Kalitta Air is set to be the launch operator of the aircraft, receiving its first example on lease from GECAS in 2023. 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. By Mike Bryant. Learn more about Stack Overflow the company, and our products. There have been reports of aircraft, thought to be long retired, being brought back into service for conversion. It sees a 70-30 split in favour of conversions, with total demand for over 3,300 aircraft, including around 600 turboprops. This is thanks to its 14 full size 88inch x 125inch main deck positions plus another 10 lower deck AKH container positions. Airframe overhaul facilities are scrambling to keep up with the demand for converting used passenger jets into dedicated cargo jets. Clearly it is the absence of belly-hold capacity that is keeping rates buoyant. 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. The addition of Haite will give EFW its fourth production lines for the narrowbody freighter. 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. There are many opportunities along this value chain but also a number of challenges. Many also envision it as a replacement for the Boeing 757, a large narrowbody jet that is increasingly scarce and approaching the end of its life cycle. Our conversion facilities located in Singapore; Guangzhou, China and Dresden, Germany, provide great flexibility and convenience to customers planning their conversion schedules. 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. Formed in 1958, Aeronautical Engineers Inc. (AEI) is the oldest conversion company in existence today. 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. 2,430 aircraft will be delivered, around 50% of which will replace current inventory. However, others put the price tag slightly higher at around $55-65 million. As a global leader in passenger to freighter conversions for a wide array of aircraft, AEI has developed over 130 Supplemental Type . 321 Precision, a joint venture that includes cargo leasing and airline services conglomerate Air Transport Services Group, also has production partners in the U.S. window.googletag = window.googletag || {cmd: []}; The strong demand for converted freighters has been driven by a robust cargo market, one of the few bright spots for the airline industry over the past 12 months. 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. The aircraft will undergo modification by the EFW joint venture which is run by ST Engineering and Airbus. Please enter a different email address. 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. More in this A330-300/-200 P2F brochure (PDF). Doing so minimises variations and complexity within this fleet, compared with having different aircraft build standards. Why is the article "the" used in "He invented THE slide rule"? G.B. Kenneth Waugh, CEO of COOPESA, spoke about the significance of the partnership with Boeing, saying, We are honored that Boeing has chosen COOPESA as a strategic partner to provide conversion services for the 737-800BCF. Jordan's line about intimate parties in The Great Gatsby? 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. Is the A330F main deck cargo compartment pressurized? If this is not the case upgrades can be installed which can be coordinated with Airbus and EFWs respective upgrade services teams. Here's a look at the process. 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. Jens Steinhagen, director of Boeing freighter conversions, commented on the announcement saying. 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. 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. 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. Covid-19 has strongly affected the aerospace industry. 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. Today,. Airbus A321s that have completed their operational service carrying passengers for airlines can soon have a second life as highly efficient freighters, converted through a programme involving ST Engineering and Airbus with their joint venture, Elbe Flugzeugwerke (EFW). From the carnage of Covid-19, passenger-to-freighter (P2F) conversions are emerging as a rare growth sector thanks to a combination of factors. To achieve this, EFW deleted the Doors 1 L/R at the front of the fuselage. 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. The prototype A321P2F ("Passenger-to-Freighter" conversion) aircraft . (Useful to have an idea of D-check costs.). 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. 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. Loaded & Rolling (Enterprise Fleet News/Analysis). 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. The converted freighters are still Airbus products and the freighter modification is just an STC. 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. 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. Cargo deck with container and flexible Cargo Loading System (CLS). 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 . We will respond to you soon. Boeing will expand its conversion business by setting up a passenger-to-freight facility in Costa Rica. 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). . Few options remain at largest end of the market. CAM expects to convert and lease 30 such aircraft by 2028, two-thirds of . Figures released in early 2021 by consultancy IBA show the stark contrast between passenger and freighter aircraft operations. Each box is designed to latch into predefined positions in existing tracks meant for passenger seats safely and securely. Latest freighter conversions/mro news. T.C. 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. Contacts. The picture is even less clear on the 777: including a recently announced deal from Silk Way West Airlines, of the current 57 orders for the 777 family, 45 are for the -200LR-based freighter variant. The strength of the A321 is clearly its capability to accommodate fully containerised cargo on both decks a game-changer in this freighter size segment, and something which is not available on competing freighter platforms up to the B757. P2F conversions serve as a form of investment for airline companies. To maximise the available main deck space the RCB is located at the most forward position possible, between the foremost left and right-hand doors (Doors 1 L/R). 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. 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. Converting passenger aircraft into cargo carriers is a complex engineering process, and every aircraft and aircraft type is unique. The prospects for the Airbus narrowbody will be aided by a choice of engines, allowing operators to avoid over-reliance on one manufacturer. 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