New round of retirements prompts second look at 757 conversions

Aircraft traders and operators of freighter-converted 757-200s that had looked beyond the platform to newer types or larger-gauge aircraft are circling back amid a recent wave of retirements. Some current 757 freighter operators see newly available feedstock as an opportunity to delay fleet renewal decisions. One large 757F operator told Cargo Facts it continues to evaluate 757 conversions either for growth, or to replac e ageing 757 freighters in its fleet. Additionally, the availability of quality conversion feedstock could slow down the introduction of 737-800Fs and A321-200Fs for carriers already operating the 757, the source said. Guam-based Asia Pacific Airlines had planned to add larger-gauge 767-300 freighters but has put those plans on hold due to scarce feedstock availability and long lead times for conversion slots. “I t's going to be twelve to fifteen months before we can get a slot ,” Adam Ferguson, president of the airline , told Cargo Facts . “We’re go ing to have to wait until the next cycle for us to be able to kind of go that direction ,” he said. [caption id="attachment_414708" align="alignright" width="550"] Icelandair is still a major operator of 757s, but has begun retiring some. (Photo/Icelandair)[/caption] With carriers looking back to the 757, “the market is jumping right back into those as well ,” said Ferguson , wh ose airline added its fourth 757-200PCF this year . “I thought my 757 days were over back in 2019, when I sold my last airplane , ” Jep Tho r nton, managing partner of aircraft trading company Aerolease Aviation , told Cargo Facts. “B ut here I am, because it just won’t go away,” he said, referring to a recently acquired 757-200 . Between 2010 and 2019, Aerolease traded dozens of 757s , many of which are flying as freighters today. Although at least 150 passenger-configured 757-200s continue to operate today, they are largely concentrated among a few carriers , and prior to the pandemic , the expectation was that many of those units would long remain in passenger service . As of today, j ust five carriers — Delta Airlines, United Airlines, Icelandair, Azur Air and Royal Flight — operat e more than five units of the type but , unlike in 2019, when just a few units were being considered for retirement, many 757-200 operators are looking at accelerated withdrawal schedules. In early 2020, United Airlines forecasted 757-200 retirements beyond 2024, when the delivery of A321 XLRs from Airbus were to commence. That calculus has begun to change , with United Airlines announc ing in January, concurrently with the release of its 4Q 2020 earnings, that eleven of its older Pratt & Whitney PW2000 -powered 757-200s grounded during the pandemic would be permanently retired. Among the 757-200s in the United fleet, the Pratt-powered aircraft were mostly older - vintage , with six airframes under twenty-four years old, and five ranging in age from twenty-seven to nearly thirty-two years old. While some of the younger airframes could end up in conversion, the PW2000 engines are expected to be the hotter commodity. “I t could be more of an engine play, ” said Thornton. The majority of freighter-converted 757s are powered by RB211s, which partially reflects large batches of feedstock released from American Airlines and Icelandair , but cargo carriers continue to add to their fleets 757-200Fs powered by both the PW2000 and RB211 . During the current market correct ion , passenger airlines prefer to avoid shop visits, choosing instead to use available green time, Thornton said. Engines remain a t t he crux of 757-200 conversion decisions. “ I think that t he 757-200 [freighter] would be much hotter, if there w ere a lot more engines out there ,” said Ferguson. “You can’t find [PW2000] engines right now with more than four or five years of life on them for less than $5 million . ” Returning to United, the carrier continues to operate forty Rolls - Royce RB211-powered 757-200s, which could be more popular conversion candidates. “Everybody’s go t their eye on the old Continental [757-200] fleet,” said Thornton. Icelandair Group, which owned twenty-three RB211-powered 757-200 s as of Dec. 30, 2020, is another carrier whose retirement schedule is being closely watched. As recent conversion orders for 737NG and A321-family freighters have highlight ed , startups and carriers without 757-200Fs in their fleets are more likely to forge ahead with newer types, according to the unnamed source. 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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