CII whats the impact on the shipping industry? Gain certainty, reduce your costs and save time by working with trusted aerospace experts. 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. 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. Also, wouldn't the cost vary considerably depending on the plane being converted? Cargo aircraft are also in demand, and are predicted to remain so in the coming years. Retracting Acceptance Offer to Graduate School. A shortage of passenger-jet belly capacity. How much does it cost extra to fly with one additional passenger? 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 . We will respond to you soon. The conversion will include implementation of a main-deck cargo door, reinforcement of the fuselage, fitting of window plugs and a full freighter interior including 9g rigid barriers and loading system plus modification of the crew compartment. 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). We obtained a Supplemental Type Certificate from the Civil Aviation Authority of Singapore for this modification in August 2020. Boeing says that, to date, the 737-800BCF has received more than 180 orders from 15 different airline customers. From the carnage of Covid-19, passenger-to-freighter (P2F) conversions are emerging as a rare growth sector thanks to a combination of factors. Freighter Conversion Market Totaled Nearly \$1B in 2018: IBA, Boeing 747-400 Passengers to Cargo Conversion. PAS and ATSG have a long-term relationship. How much does it cost to lease a jetliner? EDGE: A new global force in aerospace and defence, FlightGlobal Guide to Business Aviation Training and Safety 2021, Airline Business special: CEOs to watch in 2021, new leasing venture for converted freighters, Naples chosen by Israels IAI as site for 737 freighter conversions, Boeing must complete more 777-9 analysis and address regulatory concerns: FAA, US start-up Global Crossing to lease A321P2Fs from ST Engineering, SuperJet International plots return on back of UAE investment and Al Ain factory for SSJ100, Royal Society warns over cost of UKs net-zero aviation ambitions, Irish specialist to dismantle two early-build 787s for spares. 2018's average is 78 million USD per conversion. 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. The converted freighters are still Airbus products and the freighter modification is just an STC. 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. Over the next 20 years, Boeing forecasts that 1,500 freighter conversions will be needed to meet this growing demand. Managing Editor - Joanna has worked in publishing for more than a decade and is fast becoming a go-to source for commercial aviation analysis. Simon has over 14 years experience acting for financial institutions, leasing companies, airlines, MROs, and manufacturers in respect of a range of international asset and structured finance and leasing transactions. 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. It does not include expenditures for aircraft acquisitions and related passenger-to-freighter conversion costs. Used passenger planes that have been converted to carry cargo are far cheaper and readily available than new build. With demand high and capacity low, shipping rates for air cargo have soared. 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. 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 . Source: Boeing 747-400 Passengers to Cargo Conversion, Israel Aerospace Industries, YouTube. 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. Between May 2020 and January 2021, a total of 30 converted 737-800 freighters were added to the global fleet. Would the reflected sun's radiation melt ice in LEO? Source: Freighter Conversion Market Totaled Nearly \$1B in 2018: IBA, ainonline.com. Related: How much does a D-check cost compared to a new aircraft? 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. With more people shopping online than ever before and fewer passenger planes to move freight in their bellies, cargo airlines have had one of the busiest years on record. 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. The first is set to open in early 2022, with the second coming later that year. 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. Our CG (center of gravity) optimised conversion design results in a well . CTKs have climbed consistently over the last 12 months, save for the annual post-Christmas slump. 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. This a key milestone for "the Big Twin". T.C. 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). At these prices, further demand can be expected. for interlining with smaller freighters such as the BAE146/AvroRJ). The B747-400BDSF Main Features Maximum designed payload (including tare) is ~253,000 lbs Main Deck Modification Why are non-Western countries siding with China in the UN? Seattle airframer is adding a new 737 conversion line in South America. 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. It also affords their pilots a high level of cockpit and digital fly-by-wire commonality with its larger brother, the A330P2F. 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 fuselage is cut and reinforced to allow for the bigger door, Passenger environmental control systems are removed. Quite a number of cargo airlines choose to operate a first-hand quality converted freighter. 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. How much does a Hundred Dollar Hamburger actually cost? Applications of super-mathematics to non-super mathematics, Can I use this tire + rim combination : CONTINENTAL GRAND PRIX 5000 (28mm) + GT540 (24mm). Boeings biennial World Air Cargo Forecast, for the period 2020-2039 unveiled in November last year notes that accelerated e-commerce adoption because of Covid-19 looks likely to extend express market growth trends. 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. We recommend that customers assign heavy checks to the modification site (ST Engineering and EFW) in conjunction with the P2F conversion. Are there conventions to indicate a new item in a list? Based on the current market, analysts expect a growing demand for passenger to freighter conversion (P2F). 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. 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. The identity of the launch customer further strengthens the case for the programme argues one industry insider: I dont think its owner has put a foot wrong in all the years its been in operation.. T.C. gptAdSlots.push(gptSlot); The Avro RJ Freighter, which can carry up to 14 tonnes of cargo, fits the gap between the 7- tonne freight capacity of current large turboprops and the 18 tonnes of the bigger Boeing 737 Classic freighter conversions. We examine what makes this aircraft operationally unique, as well as the technical and conversion considerations for operators who plan to bring this type into their fleets. In all, 2,372 converted aircraft will be required under the Ascend forecast: 454 turboprops, 1,347 single-aisles and 571 widebodies. The average conversion cost for the Boeing 767-300ER is US$14.7 million, compared to US$18.4 million for the A330-300. 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.. Passenger-to-freighter Conversion Business Booming in Asia-Pacific | Air Transport News: Aviation International News Converting passenger aircraft into a freighter is a way to extend the economic life of an aircraft. Jens Steinhagen, director of Boeing freighter conversions, commented on the announcement saying. 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. Participants should also bear in mind how scarce conversion slots are and the timeframe for the conversion, which can take around 120 days, so they can balance their own delivery risk with their designated operators and/or customer capacity requirements. 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. For instance, Boeing revealed it will in 2022 set up a P2F conversion facility for 737-800s in Costa Rica the first such operation in South America while Israel Aerospace Industries (IAI) will in 2024 establish a modification line in Seoul, South Korea for 777-200LRs and -300ERs. MSN no.) Elbe Flugzeugwerke continues to increase its capabilities. 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. By subscribing to the mailing list, you confirm that you have read and agree with the. Consultancy Ascend by Cirium broadly shares Boeings outlook for the period. Learn more. Covid-19 has strongly affected the aerospace industry. EirTrade says the identity of the airframes to be dismantled is currently confidential. 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. Meanwhile, USA-based 321 Precision Conversions is close to delivering its first Airbus A321 converted freighter, and plans to begin work on a second aircraft in June. . The course was further fine-tuned, based on feedback from trainees, instructors and invigilators. @FreeMan Yes, as D check. Sanctions briefing looking back at 2022 and whats on the horizon for 2023? Cargo conversion for their own cargo unit might speed up LH getting rid of their 747-8i fleet 10-15 years from now. 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. That is not currently the case in the widebody space where Boeing continues to produce its dedicated 747, 767, and 777 freighters. 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. 2021 is looking to be an even stronger year for the type, it says, with nearly 40 aircraft pending. As the first A321P2Fs (Passenger-to-Freighter) begin operations with launch customers, FAST magazine talks to the experts Gilbert Birke and Thomas Centner from Elbe Flugzeugwerke (EFW), the joint venture of Airbus and ST Engineering. 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. Assessment EFW has delivered 16 passenger-to-freighter conversions of single-aisle aircraft, including one A320 a slightly smaller sister to the A321 so far. 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. This has declined dramatically. 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. There have been reports of aircraft, thought to be long retired, being brought back into service for conversion. Some advantages of our A320/A321P2F solution include: In contrast to other solutions providers who rely on reverse engineering, our Airbus P2F programmes are developed using OEM technical data to convert passenger aircraft into well-optimised and reliable freighter workhorse. E-Jet Freighter - Rendering, Embraer. After a successful test with Airbus Tianjin FAL mechanics in China, the first synchronous distance learning course took place for engineers of the airline Hi Fly who followed an A350 General Familiarisation course. 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. 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. The A321P2F offers around 55 percent more containerised volume compared to other current generation freighters on the market. 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. is there a chinese version of ex. 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. Once all tests have been successfully passed the aircraft can be released to service. 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. Formed in 1958, Aeronautical Engineers Inc. (AEI) is the oldest conversion company in existence today. 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. To learn more, see our tips on writing great answers. 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 cockpit door is also removed, allowing the creation of a merged cockpit + courier area, referred to as the Extended Flight Deck. googletag.cmd.push(function() { The competing B737 freighter can only offer container positions on the main deck and bulk cargo on the lower holds. 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. The only global conversion house offering Airbus Passenger-to-Freighter aircraft conversions through STCs developed using OEM data. The market for passenger to freighter conversion is firmly focused on the 737 family, with the -800 the most attractive conversion candidate just now. Global air freight's future. Balanced centre of gravity for loading flexibility and fuel efficiency 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. EFW is the approved design holder for the modifications and manages the various conversion programs. G.B. T.C. The A330P2F programme has two variants the A330-200P2F and A330-300P2F. Boeing will expand its conversion business by setting up a passenger-to-freight facility in Costa Rica. 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. Site design / logo 2023 Stack Exchange Inc; user contributions licensed under CC BY-SA. No worries, @ManuH! Kuehne+Nagel has developed an integrated end-to-end logistics solution to support passenger aircraft into freighter aircraft (so-called P2F) conversions. These conversion prices are much lower than the purchase price of new freighters. What does the future of aviation look like in 2022? googletag.cmd.push(function() { All such deviations from the basic design need to be checked and incorporated into the scope. While the P2F process itself does not require any WV change, WV upgrades/downgrades can be performed on customers request if a particular feedstock airframe has that WV option. It also expects to establish production lines in China and the United States for the A330 reconfiguration in 2022. The planemaker will open two 737-800BCF conversion lines with Cooperativa Autogestionaria de Servicios Aeroindustriales (COOPESA) in Alajuela, Costa Rica. Cash receipts from government payroll support programs, which are included in operating cash flows, were $0 and $83.0 million for the years ended December 31, 2022 and 2021, respectively. Boeing 767-300ER is US $ 18.4 million for the modifications and manages various! 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