passenger to freighter conversion cost

COOPESA has demonstrated the technical expertise and commitment to quality and execution necessary to help us meet the growing customer demand for the 737-800BCF, including in the Americas. Virtual Hong Kong airline to lease new 777 converted freighters, Freighter frenzy could lead to oversupply of cargo jets. In 2007, PAS redelivered the first of four converted Boeing 757-200PCF freighters to CAM. 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 best answers are voted up and rise to the top, Not the answer you're looking for? 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. 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This new partnership will greatly support our strategy to expand the global network for our narrowbody P2F program. 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. And in recent days, one of its freighter conversions caught people's attention, because it involved a rather young jet. 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 estimate that most slots are sold for 2021 and. There are multiple threats to the global economy at the moment, including surging inflation, monetary tightening, and new COVID-19 variants, but absent an unexpected economic downturn, it is likely that the demand for freight, freighters, and passenger-to-freighter conversions will continue to grow in the coming years. Aircraft conversions are technically challenging and require precise material planning. The CMV of the potential B737-800 passenger aircraft feedstock for conversion is higher than our estimated ideal aircraft value of around $11M and below for conversion, reflecting passenger market demand. as in example? The planemaker will open two 737-800BCF conversion lines with Cooperativa Autogestionaria de Servicios Aeroindustriales (COOPESA) in Alajuela, Costa Rica. T.C. 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. Plus, I learned a new word! Applications of super-mathematics to non-super mathematics, Can I use this tire + rim combination : CONTINENTAL GRAND PRIX 5000 (28mm) + GT540 (24mm). Would the reflected sun's radiation melt ice in LEO? That facility will augment IAIs initial line in Tel Aviv, where the first aircraft under the 777-300ERSF programme it launched in 2019 with lessor GECAS will shortly be inducted. 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. I did not know that was a word. Share this story. 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. News that Singaporean firms ST Engineering and investment company Temasek are joining forces to create a new leasing venture for converted freighters is the latest in a series of recent announcements focused on the booming market for passenger to freighter (P2F) modifications. How much does a Hundred Dollar Hamburger actually cost? Site design / logo 2023 Stack Exchange Inc; user contributions licensed under CC BY-SA. Low demand for the 4-engine aircraft and its relatively high operating costs, combined with limited routes enabling airlines to maximize the A380s passenger carrying capabilities, crushed their original sales forecast. We highly recommend that parties interested in conversions talk to EFW as early as possible to assess the suitability of potential feedstock airframes. 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. 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. }); googletag.cmd.push(function() { It also affords their pilots a high level of cockpit and digital fly-by-wire commonality with its larger brother, the A330P2F. 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. MSN no.) 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. We have a standard P2F kit that fits at say 90% of the final scope. there was a definition for it as an English word as well. 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. However, in the end the feedstock selection depends on the ramp price after conversion, so each business case is individual. Lufthansa Group Moves Forward With Passenger-to-Freighter Conversions Lufthansa Technik, the MRO division of Lufthansa Group, obtained approval from the German Federal Aviation Authority for an Engineering Order Specific Tailsign for four Airbus A330-300 passenger aircraft belonging to Lufthansa. googletag.cmd.push(function() { 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. DHL Express has become the first operator to take delivery of the A330-300 Passenger-to-Freighter (P2F) converted aircraft from Elbe Flugzeugwerke (EFW). UPS . 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. By continuing to browse this site you are agreeing to our use of these cookies. 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. Sichuan Haite Hi-Tech, a publicly listed maintenance, repair and overhaul company based in Chengdu, China, will prepare a production line at its Tianjin, China, facility and accept its first A321 aircraft for conversion in the third quarter. Moreover, the fact that EFWs programme is the only OEM solution for A321P2F in the market also ensures lifecycle value, quality, reliability and ease of maintenance. In all, 2,372 converted aircraft will be required under the Ascend forecast: 454 turboprops, 1,347 single-aisles and 571 widebodies. 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. The rise in passenger-to-freighter conversions is already starting to generate litigation. 4.2 Limitations 4.2.1 Acceptable used market price. The market for passenger to freighter conversion is firmly focused on the 737 family, with the -800 the most attractive conversion candidate just now. As such, there appears to be a demand/supply equilibrium currently in terms of aircraft available for conversion. We recommend that customers assign heavy checks to the modification site (ST Engineering and EFW) in conjunction with the P2F conversion. Ireland-headquartered aircraft lessor AerCap has completed delivery of its 50th 737-800 Boeing Converted Freighter (BCF). For any asset owner this will provide a great opportunity to leverage future growth and replacement waves, underpinning the already great value proposition of the A321 today., Head of Sales for Airbus Freighter Conversion - EFW, Aircraft Type Training & Related Initial Training, Efficiency & Sustainability Systems Upgrades, Aerospace Integrated Research & Test Centre. 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. Passenger to freight (P2F) conversion is a low-cost solution compared to the dedicated cargo aircraft. 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. Desktop computers and computer software used to be sent by air. This dramatic decline meant the world's air cargo - more than 50% of which was transported in the hold of passenger jets - was also severely impacted. Connect and share knowledge within a single location that is structured and easy to search. The company has previous experience carrying out freighter conversions on other aircraft types. Learn more. 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. 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. Such interest has led to a surge in demand for aircraft prime for conversion, as well as slots for the conversion itself. Are there conventions to indicate a new item in a list? 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.. Once all tests have been successfully passed the aircraft can be released to service. T.C. How did Dominion legally obtain text messages from Fox News hosts? As of July 30, 2017, a total of 1,425 Airbus A321-200 passenger aircraft are in service. 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()); 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. Joint venture partner ST Engineering has production sites in San Antonio, its home base in Singapore and Guangzhou, China. Boeing says that, to date, the 737-800BCF has received more than 180 orders from 15 different airline customers. Of course, whether Boeing continues to offer the -300F is not guaranteed. Interest in our A321P2F conversion solution has been on a significant rise over the past year, says chief executive Andreas Sperl. U.S.-based rival 321 Precision Conversions, which started later than EFW, has delivered a handful of A321 passenger-to-freighter conversions but expects to significantly ramp up production this year and is booked out into 2025, according to Sales Director Zachary Young. @FreeMan Yes, as D check. Overall air cargo rates remain at elevated levels because of stronger demand and an ongoing capacity crunch caused by a reduction in belly-hold services, says Damian Brett, editor of FlightGlobals sister publication Air Cargo News. 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Virtual Hong Kong airline to lease new 777 converted freighters, Freighter frenzy could lead to oversupply of jets... Fox News hosts 's radiation melt ice in LEO Autogestionaria de Servicios Aeroindustriales ( )!, as well computers and computer software used to be a demand/supply equilibrium currently terms! There conventions to indicate a new item in a list conversion itself Engineering has sites! Conjunction with the P2F conversion our strategy to expand the global network for our narrowbody P2F program Inc...

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