Icelandair upgauges freighter fleet with 767s

Icelandair Group and Titan Aircraft Investments (TAI), the joint venture between Titan Aviation Holdings and Bain Capital Credit, have signed a deal for the sale, conversion and leaseback of two 767-300ERs [FATs 006027-6032]. The aircraft will be converted next spring, with redelivery estimated for September 2022. Icelandair confirmed to Cargo Facts that the two 767s will be converted by Boeing; one aircraft will be from Icelandair’s current fleet and the other will come from the wider group — the Loftleidir subsidiary that owns two 767-300ERs (25365 and 30341) currently leased to Papua New Guinea-based Air Niugini. Icelandair itself operates four 767-300ERs (26971, 28745, 29388 and 30586), one of which (30586) is leased from GECAS. [caption id="attachment_415527" align="alignright" width="560"] Icelandair Group owns five 767-300ERs. (Photo/Icelandair)[/caption] With an initial lease term of ten years each, the two newly converted 767 freighters are to replace Icelandair's two current 757-200Fs, the oldest in the fleet at around thirty-one years old. One (24456, ex-Challenge Air Cargo) was delivered as a freighter by Boeing in 1989, while the other (24739) was converted by Precision Aircraft Solutions in 2006. The carrier had previously told Cargo Facts that the two 757Fs would come off lease in 2023 and 2024. Icelandair said it has not made any decisions on converting any more of its passenger 757-200s — currently ranging from around nineteen to thirty years old — and will continue to monitor market developments to see how passenger operations develop after the pandemic before making further decisions. Last year, Icelandair reconfigured all four 767-300ERs and two 757-300s for cargo by removing seats from their passenger cabins. Bogi Nils Bogason, president and CEO of Icelandair Group, said in a release that the 767 freighters will allow the carrier to “maximize new opportunities” and strengthen the Keflavik (KEF) hub. Early last year, Icelandair began carrying all FedEx Express shipments to and from Iceland under a three-year deal. Returning to TAI, this deal represents the second major deal for the JV. The lessor acquired a 777F from Atlas in November 2020 and dry leased it back to the group for an eight-year term . The agreement between Icelandair and TAI closely resembles Air Canada’s recent deal with Air Transport Services Group (ATSG), under which ATSG will purchase two 767-300ERs from Air Canada, convert them with Israel Aerospace Industries (IAI) and lease them back to the carrier. The first aircraft under that agreement (24306), a thirty-two-year-old frame powered by General Electric CF6 engines, was ferried from Toronto (YYZ) to Tel Aviv (TLV) on March 10, and will rejoin Air Canada’s fleet along with the second frame by the end of 2021. Cargo Facts Asia, taking place April 20-21 as a virtual experience, is the event for exploring opportunity in the Asia-Pacific region. The event continues to bring together the best, brightest, and most innovative executives in the global air cargo industry. Learn more and register at www.cargofactsasia.com .

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