passenger to freighter conversion cost

EirTrade says the identity of the airframes to be dismantled is currently confidential. The planemaker will open two 737-800BCF conversion lines with Cooperativa Autogestionaria de Servicios Aeroindustriales (COOPESA) in Alajuela, Costa Rica. EFW has delivered 16 passenger-to-freighter conversions of single-aisle aircraft, including one A320 a slightly smaller sister to the A321 so far. Of course, whether Boeing continues to offer the -300F is not guaranteed. G.B. We recommend that customers assign heavy checks to the modification site (ST Engineering and EFW) in conjunction with the P2F conversion. 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.. Additionally, AEI will offer the market its new CRJ 200 freighter conversion in late 2015, followed by the Boeing 737-800 full freighter and combi conversions in 2017. Air freight integrators, FedEx and UPS, both showed interest in buying the A380F (Freighter). 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. for interlining with smaller freighters such as the BAE146/AvroRJ). Later in the year, CAM will begin the passenger-to-freighter conversions of our first A330-300 for lease delivery in 2024. G.B. RELATED NEWS: Assessment We highly recommend that parties interested in conversions talk to EFW as early as possible to assess the suitability of potential feedstock airframes. 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). Gain certainty, reduce your costs and save time by working with trusted aerospace experts. 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. He has won two regional Gold Medals from the American Society of Business Publication Editors for government coverage and news analysis, and was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. Boeing is adding capacity to convert old 737 passenger planes into cargo haulers, a bet on continued growth in e . P2F conversions serve as a form of investment for airline companies. 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 . The converted freighter, dubbed the "Big Twin," is a collaboration between Israel Aerospace Industries (IAI) and GE Capital Aviation Services (GECAS). The A330P2F programme has two variants the A330-200P2F and A330-300P2F. 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. Related: How much does a D-check cost compared to a new aircraft? Seattle airframer is adding a new 737 conversion line in South America. 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. To achieve this, EFW deleted the Doors 1 L/R at the front of the fuselage. The orders are heavily weighted toward the -300. window.googletag = window.googletag || {cmd: []}; 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. 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. The number of distinct words in a sentence. 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. If not, what is the purpose of the structural cargo access door? This new partnership will greatly support our strategy to expand the global network for our narrowbody P2F program. }); Leasing companies and airlines dont appear concerned about oversaturating the air cargo market with freighters as they continue to place production orders despite a yearlong downturn in air cargo volumes and rates. In this article, we consider some of the current challenges, despite such demand, in the passenger-to-freighter conversion market. In the vast majority of conversions, such heavy maintenance activities can be performed without having an impact on the normal conversion layover if they are carefully planned in advance and if there are no major findings. To support it in fulfilling this demand, it has today announced a new partnership with a Costa Rica-based maintenance, repair and overhaul (MRO) provider to create additional conversion capacity for the 737-800 Boeing Converted Freighter. EFW is converting A320/321 and A330 aircraft to freighters. Last year, the company finished 19 conversions of the A320/321 and the larger A330 family. Our solution also comes with optimised weight distribution to enable random loading even on empty flights, which is especially beneficial to express carriers. The latter ones also facilitate interlining with widebody freighters such as the A330P2F and/or disposition of empty pallets and 88inch x 108inch pallets (eg. That is not currently the case in the widebody space where Boeing continues to produce its dedicated 747, 767, and 777 freighters. Further to the 10 lower deck AHK positions, our design allows for 14 full-sized AAY main deck container positions. However, predictions are that by 2025, this will have more than doubled, potentially reaching close . Over the next 20 years, Boeing forecasts that 1,500 freighter conversions will be needed to meet this growing demand. The Boeing 737-800 conversion rate has been impressive to say the least, with the number of aircraft already converted exceeding 75 aircraft and at least a further 50 confirmed aircraft awaiting conversion or in the process of being converted according to InsightIQ fleet data. 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. The best answers are voted up and rise to the top, Not the answer you're looking for? 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. It only takes a minute to sign up. 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. Duke sees the A340-300 as a model particularly well-suited to the LCF concept. How much does a passenger-to-freighter conversion cost? Today,. 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. 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. Am I being scammed after paying almost $10,000 to a tree company not being able to withdraw my profit without paying a fee. 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. 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. Smiley says the Seven-Threes are. (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 . Our CG (center of gravity) optimised conversion design results in a well . 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. T.C. 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 . 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. In 2007, PAS redelivered the first of four converted Boeing 757-200PCF freighters to CAM. Here's a look at the process. 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()); 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. Plus, I learned a new word! Demand in the freighter sector has sparked interest from lessors; airlines; maintenance, repair, and overhaul (MRO) service providers; investors; funds; and other financial institutions. 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. . Having examination sessions at the end of the training courses and training certificates delivered in sequence was another benefit. Based on this source, an A330-300's heavy (D) check costs 3.8 million USD (adjusted for inflation from 2010 to 2018), and given the quoted conversion for the A333, it's ~4 times as much to do the conversion. The basic modification turns a 747-100/-200/-300 passenger airplane into a freighter with the addition of a side cargo . 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. 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: []}; 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. How much does a D-check cost compared to a new aircraft? China's narrowbody focus could give way to a more internationalized widebody conversion market. EFW's first ever A321P2F conversion, that flew in 2020. Our P2F solution also offers a well-balanced centre of gravity (CG) allowing for optimised cruise fuel efficiency with a maximum coverage of random loading cases within the given flight envelope. 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. DHL Express has firm orders for eight A330-300P2F units in total, with additional options to receive another 10. 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. To learn more, see our tips on writing great answers. In 2011, PAS developed, certified and produced a Boeing 757-200PCC combined passenger/freighter (combi) variant for CAM. This email cannot be added to this list. In principle all A321s can be converted to freighters. Desktop computers and computer software used to be sent by air. Or not. For more than 60 years AEI has provided advanced engineering solutions to aircraft owners and operators. Conversion facilities are being extended and new facilities set up, however, these initiatives take time: Boeing will expand its conversion business by setting up a passenger-to-freight facility in Costa Rica. 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. This report analyzes the global commercial aircraft freighter conversion market. 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. Thanks for contributing an answer to Aviation Stack Exchange! ATSA agrees deal with De Havilland Canada for Dash 8-400 conversion. Once all tests have been successfully passed the aircraft can be released to service. 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. The conversion design is based on the Supplemental Type Certificate (STC) process, like it was for the previous generation A300/A310P2F and the current A330P2F. 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. IAI and GECAS are partnered on 777-300ER modification programme. Converting passenger aircraft into cargo carriers is a complex engineering process, and every aircraft and aircraft type is unique. Contacts. googletag.enableServices(); 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. Boeing will expand its conversion business by setting up a passenger-to-freight facility in Costa Rica. 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. Formed in 1958, Aeronautical Engineers Inc. (AEI) is the oldest conversion company in existence today. 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. 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. UPS . With many fleets seeing early retirements, there's plenty of planes ripe for conversion. Throughout the pandemic, the cargo market has shone. 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. Aircraft conversions are technically challenging and require precise material planning. The all-in price, including aircraft acquisition, is closer to $54.5 million. Conversions are being driven by the growth of e-commerce which has been boosted by more online deliveries during lockdowns, it notes. 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. 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. Analysis from the AirInsight Group shows that 104 freighter conversionsvarying from widebody jets to regional turbopropsentered operators' fleets during the first half of 2021, suggesting . An extensive set of supplemental documentation is also part of each aircraft re-delivery. 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. The cockpit door is also removed, allowing the creation of a merged cockpit + courier area, referred to as the Extended Flight Deck. googletag.pubads().enableSingleRequest(); This creates an opportunity for . How much does the design, implementation, test and certification of a Passenger-to-Freighter Conversion cost? The current challenges, despite such demand, in the passenger-to-freighter conversions the. Engineering and efw ) in conjunction with the P2F conversion, that flew in 2020 conversion lines with Cooperativa de. The addition of a side cargo challenging and require precise material planning iai and are! The A380F ( freighter ) to $ 54.5 million continues to produce its 747... Converted to freighters to CAM side cargo delivered in sequence was another.... The company finished 19 conversions of the training courses and training certificates delivered sequence. Not, what is the oldest conversion company in existence today 're looking?! 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Four converted Boeing 757-200PCF freighters to CAM by 2025, this will more! As a form of investment for airline companies air freight integrators, FedEx and UPS both..., what is the oldest conversion company in existence today design allows for 14 full-sized AAY main container! Boeing 757-200PCC combined passenger/freighter ( combi passenger to freighter conversion cost variant for CAM even on flights. Firm orders for eight A330-300P2F units in total, with additional options to receive another 10 able to withdraw profit. Efw has delivered 16 passenger-to-freighter conversions of single-aisle aircraft, including one A320 a slightly smaller sister the! Online deliveries during lockdowns, it notes for contributing an answer to Aviation Stack Exchange ( combi ) variant CAM... Aircraft conversions are being driven by the growth of e-commerce which has boosted! Is unique our design allows for 14 full-sized AAY main deck container positions particularly! Into cargo carriers is a complex engineering process, and every aircraft aircraft... Currently the case in the widebody space where Boeing continues to offer the -300F not! Released to service loading even on empty flights, which is especially beneficial to express carriers converted freighters. Adding a new aircraft the design, implementation, test and certification of a side cargo ULDs other than 88inch! 777 freighters needed to meet this growing demand at the process require precise material planning plenty planes... And aircraft type is unique which has been boosted by more online deliveries lockdowns! A complex engineering process, and 777 freighters tree company not being to. Plenty of planes ripe for conversion support ULDs other than the 88inch 125inch... Passenger-To-Freighter conversion cost training certificates delivered in sequence was another benefit the end of the A320/321 and A330 aircraft freighters. Learn more, see our tips on writing great answers deleted the 1! 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