CFA 2016: 757 conversion orders keep rolling in

HONG KONG — Precision Aircraft Solutions announced another eight orders for 757-200PCF passenger-to-freighter conversions at Cargo Facts Asia 2016 here yesterday.

China Postal Airlines ordered six, while recent startup China Air Cargo Corp ordered two.

As we reported late last year, when Boeing announced a launch order from China Postal for ten 737-800BCF conversions, there was a short note buried in the press release, that the order “also includes the purchase of seven Boeing 757-200s that the airline plans to convert into freighters.” At the time, we speculated that

• The source of the 757-200 feedstock was China Southern Airlines (which has a 49% stake in China Postal)

• This was Part I of a two-part deal, with China Postal likely taking all thirteen of China Southern’s 757-200s over the next few years.

• The conversions would be done by Precision.

Other than that this order is for six, not seven, we think our prediction was pretty accurate.

China Postal fleet is currently made up of eight 737-400Fs and fourteen 737-300F, and the carrier ACMI-leases four 757-200PCFs from Air China Cargo.

Turning to the other two orders, our earlier speculation on that subject turns out to have been on target, as well. In early December last year, we reported that the Civil Aviation Administration of China (CAAC) had granted initial approval to the establishment of a new all-cargo carrier. China Air Cargo Corp, a joint venture of Joy Air Holding, Guangzhou Donlinks Group, and Beijing Fuda Asset Management, was to be based at Guangzhou Baiyun International Airport (CAN), from which it planned to offer domestic and international cargo and mail service, using both 757-200Fs and Chinese-made MA600Fs.

Regarding the source of the feedstock for the conversions, Cargo Facts believes China Air Cargo Corp has already acquired two 757-200s (27513, 2751, both ex-Xiamen Airlines).