BlackRock diversifies freighter portfolio with 757 conversion

BlackRock’s Aviation Holdings III fund is confident in its freighter-focused portfolio and plans to move forward with additional narrowbody conversions, including a new type, according to Director Bill Kmiotek during a panel discussion at Cargo Facts Asia this week. [caption id="attachment_415786" align="alignright" width="513"] Panelists from Aero Capital Solutions, BlackRock, CDB Aviation and China Aviation Valuation Advisors on a virtual roundtable session at Cargo Facts Asia 2021[/caption] The fund recently acquired a 757-200 (28833, ex Air-Astana) and plans to induct it for conversion to freighter configuration this July. On the sidelines of the virtual conference, Kmiotek identified Precision Aircraft Solutions as the STC holder for the conversion and told Cargo Facts touch labor for the conversion will be performed at the Avocet MRO facility in Orlando-Sanford (SFB). BlackRock’s Aviation III fund is a five-year fund, with “hundreds of millions of dollars” to invest, said Kmiotek. “We transitioned our entire portfolio out of passenger starting two years ago and we are 100% freighter-focused now,” he said. The fund’s portfolio comprises three factory-built 747-400Fs, and some narrowbodies, including a 737-400 Classic freighter and a 757-200 production freighter (24868, ex-ASL Airlines Belgium) that is under an LOI to another European lessee. With the focus on freighters, the fund has been expanding its holdings and moved into 737NGs. Last year, BlackRock ordered three 737-800SF conversions from AEI , and has since exercised options and placed a new order for a total of five more conversions. While the 737-800 platform remains a focus, the fund has not ruled out widebody conversions. Although there are some attractive options, “slots seem to be the biggest inhibitor,” Kmiotek said. The fund is also evaluating A321-200 conversions. “We’ve been primarily a Boeing freighter house, but we are looking real hard at the A321 freighter,” said Kmiotek. “We think that has potential to be a winner.”

BlackRock diversifies freighter portfolio with 757 conversion

A321-200 conversions may follow

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IndiGo moves into freighters with young A321P2Fs

IndiGo moves into freighters with young A321P2Fs

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