Regional segment buzzes with activity

The growth of express shipping and the e-commerce market over the past couple of years has led to an increased dependence on regional freighters globally, but the past twelve months have seen more activity in this segment than ever before, with multiple product launches and new operators entering the space. As of Oct. 31, Cargo Facts recorded 295 regional freighters with payloads of approximately 3.4 to 8.8 tonnes in active service around the world, spread across fifty-four different operators. When compared with last year’s totals, the number of regional freighters in service globally was higher by fifty-six aircraft. However, this year we have also included the Short 360 in the table below. Milwaukee-based Air Cargo Carriers is by far the largest operator of this aircraft, which has a payload of around 3.4 tonnes. A more detailed table can be found here . Excluding the Short 360, the total number of active aircraft still grew by twenty-four units, a year-over-year increase of around 10%. This was driven partly by reactivations but also by redeliveries of fresh conversions. Looking at the geographical distribution of the relevant freighter types, the Americas accounted for almost 60% of the aircraft currently in service, with the vast majority based in Mexico, the United States and Canada. Around 34% of the regional freighters were based in Europe, leaving just a small number in Africa and Asia Pacific. New-build freighters start flying in the U.S. While ASL Airlines Ireland was the only operator of the factory ATR 72-600F with a single FedEx unit this time last year, the type is now also in operation in the United States, with Empire Airlines flying one (1680) in Alaska and Gulf & Caribbean Cargo flying two (1681 and 1686) from Miami (MIA). ASL, for its part, has added five more ATR 72-600Fs in the past twelve months and is flying all six within Europe on behalf of FedEx. [caption id="attachment_56725437" align="alignright" width="450"] Mountain Air Cargo and Empire Airlines will operate the first SkyCouriers. (Photo/Mountain Air Cargo)[/caption] Soon the ATR 72-600F won’t be the only production regional freighter in service. In March, Cessna obtained type certification from the Federal Aviation Administration (FAA) for its new 408 SkyCourier and delivered the first freighter version of the aircraft to FedEx shortly thereafter. In May, that aircraft (003) made its way to Kinston (ISO), the base of Mountain Air Cargo, and was followed by another (005) in September, and a third (004) was ferried to Spokane (GEG) in July ahead of service entry with Empire Airlines. The SkyCourier will be included in our list of regional freighters in 2023. Saab 340B freighters stabilize regional demand As express shipping demand reshapes the focus of operators, freight forwarders and lessors, it has also extended the service life of existing regional freighter types such as the Saab 340B, which continues to draw interest from carriers. Jetstream Aviation Capital, the largest owner of Saab 340Bs in both freighter and passenger configurations, has signed a deal to place fifteen Saab 340B freighters on lease with Dallas-based Ameriflight. The carrier expanded its current regional aircraft fleet to include the Saab 340B as part of its strategy to address the growing market demand. [caption id="attachment_56860475" align="alignleft" width="450"] Purolator now has a Saab 340B painted in its livery. (Photo/Castle Aviation)[/caption] The first aircraft, the 1990-vintage unit 192 (ex-RVL Aviation), arrived at Dallas-Fort Worth (DFW) on July 22, while a second (197, ex-Loganair) followed a month later. Ameriflight has also been evaluating technology that would allow the carrier to conduct autonomous and semi-autonomous flights with its regional fleet. Another carrier that has injected life into Saab 340B freighters is Castle Aviation, which also entered into a multi-aircraft lease agreement with Jetstream and took delivery of its sixth Saab 340B freighter in August. The aircraft is painted in the colors of Canadian logistics company Purolator. In Europe, Latvia-based RAF-Avia also took redelivery of its first Saab 340B conversion in May to increase its regional lift capacity. That aircraft was the thirtieth Saab 340B conversion for Sweden-based Taby Air Maintenance (TAM). Apart from the recent lease agreements with Ameriflight and Castle Aviation, Jetstream told Cargo Facts that it intends to convert an additional ten to fourteen Saab 340B freighters by 2023 as older Saab 340A freighters are phased out of service. A new regional jet freighter There have been several regional freighter announcements this year with launches of new conversions for Embraer, De Havilland, Saab and ATR aircraft that will strengthen short- to medium-range lift capacity. Embraer announced in March the launch of its E190/195 freighter conversion program, saying that the E-Jet freighters will be capable of carrying around 10 to 12 tonnes of payload. The Brazil-based manufacturer announced its first firm order with an unidentified customer in June for ten conversions and more recently finalized an order from Nordic Aviation Capital for ten conversion slots. The Denmark-based lessor has already signed Kenya-based Astral Aviation as its first lessee for two E190Fs. [caption id="attachment_56860450" align="alignright" width="450"] E-Jet freighters could fill the gap between ATRs and 737s. (Photo/Embraer)[/caption] From a market perspective, E-Jet freighters will fill a niche as a regional aircraft with a smaller payload capacity than a 737 Classic but a range that extends further than that of a turboprop freighter. “The case for E-jet freighters is very interesting,” Gustavo Ribeiro, head of business management and contracts at Embraer Services & Support, said at this year’s Cargo Facts Symposium. “If you look at the cargo market today, there’s a clear gap between turboprops and standard bodies. That’s exactly where we are aiming with our conversions.” Embraer sees strong growth potential for its E-Jet conversions in densely populated regions such as North America and Europe but also in South America and Africa. “One of the characteristics of the E-Jet that has made it so successful in the regional market is that it allows operators to upgauge some of the turboprops and also right-size some of their 737 operations,” Ribeiro said. “There are hundreds of 737s that will be retired in the next few years and the E-Jet is the perfect replacement for some of those aircraft.” De Havilland enters the arena In the larger turboprop freighter sector, De Havilland Aircraft of Canada is also joining the regional conversion market after launching a family of modifications for the Dash 8-400 at the Farnborough International Airshow in July and signing Ethiopian Airlines as a launch customer. Ethiopian, which has a fleet of thirty-two Dash 8-400s, will convert two to four of its oldest turboprops into the Large Cargo Door version (F-LCD) of the De Havilland program, while the manufacturer has also secured an unidentified customer for its Quick Change (QC). Robert Mobilio, vice president of engineering at De Havilland, told Cargo Facts at Farnborough that the company expects the QC variant to be ready by yearend, while the Package Freighter (PF) will be a twelve-month program and the F-LCD will be ready in 2024. [caption id="attachment_56726089" align="alignleft" width="450"] The Dash 8-400 F-LCD will have its cargo door on the starboard side. (Photo/De Havilland)[/caption] De Havilland Director of Airline Marketing Jerome Cheung provided more insight into the company’s decision to launch the conversions during a panel on regional freighters at Cargo Facts Symposium, saying that while the fundamentals of demand haven’t changed, there is a lot of pent-up demand in smaller markets, especially where the passenger airlines are pulling out. “We looked at what the market really needs and, in a lot of cases, customers want flexibility,” Cheung said. “This is why we came up with a variety of different offerings to meet those demands. If you are an airline carrying passengers, but you want that extra bit of capability to carry cargo as well, you can use the QC solution. But if you want to turn your aircraft into a full freighter, we have the option of the PF or the F-LCD conversion.” Putting a cargo door on an aircraft is more complex and will take more time, but De Havilland has mapped out the engineering with milestones, Cheung added. “You can start with the QC and when the cargo market is mature enough, you can modify the aircraft into the PF,” he said. “When you move into the kind of space where you’re carrying containerized cargo, there’s the F-LCD option.” Established providers launch new conversions In January, TAM announced Jetstream as the launch customer for its new Saab 2000 conversion program. The Saab 2000 freighter will offer 1,960 cubic feet of volume and a maximum payload of around 6.6 tonnes, with six net-divided loading areas, according to TAM. The program is based partly on its smaller Saab 340B conversion, TAM told Cargo Facts . In October TAM was finishing structural reinforcement of the cabin and in parallel updating all major wiring and implementing an avionics modification, and the company is preparing its flight test program with hopes to have the European Union Aviation Safety Agency (EASA) certify all the relevant paperwork before the rollout and first flight by the end of the year. Meanwhile, with suitable ATR 72-500 feedstock dwindling, both Aeroconseil and IPR Conversions are turning to the newer ATR 72-600. [caption id="attachment_56860451" align="alignright" width="450"] IPR offers the only conversion with a large cargo door for ATRs. (Photo/IPR Conversions)[/caption] Aeroconseil will offer a bulk freighter similar to its ATR 72-500F conversion but with additional modifications compatible with the ATR 72-600’s new avionics and will redeliver the first unit in early 2023 to launch customer Nordic Aviation Capital, which has ordered five. IPR Conversions, on the other hand, is developing extensions to its ATR 72-500F bulk and large cargo door conversions and has signed a launch order for three ATR 72-600F conversions with ACIA Aero Leasing. The first unit will begin in January 2023 at the Empire Aerospace facility in Coeur D’Alene (COE), which is already an IPR conversion site. Empire Chairman and Chief Executive Tim Komberec said at Cargo Facts Symposium that the -600 is the next logical model for conversion and that it is in line with the natural evolution of companies that want more modern aircraft. “When we’re talking about growth in regional freighters, new demand from e-commerce is a large part of it, but we’re also seeing cycle replacements,” Komberec said. “We’re seeing older freighters being replaced and we’re seeing people replace smaller package freighters with larger aircraft like ATRs.” With multiple options to choose from amid a changing market, the prospects for the regional segment and turboprops in particular are bright, Gilles Collaveri, business development director at ATR Aircraft, said during a regional freighter panel at Cargo Facts Symposium. “Airlines all over the world are chasing costs,” Collaveri said. “Economically, there is no question that turboprops offer a double-digit difference compared to competitors. Costs today are a key point, but tomorrow they will be even more important.” This feature was originally published in the November 2022 issue of Cargo Facts. Cargo Facts EMEA, the essential event for stakeholders in Europe, the Middle East and Africa, will take place live Feb. 6-8 in Dubai. Register today to take advantage of early-bird pricing.

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