Aircraft Finance Germany resuscitates parked Saudia 747-8Fs

AFG Aviation Ireland, a subsidiary of Aircraft Finance Germany (AFG), has acquired two 747-8Fs (37562 and 37563) from Saudi Arabian Airlines (Saudia) on behalf of China-based aviation conglomerate Hongyuan Group. The freighters have been parked in Jeddah (JED) since January 2020, and were the only 747-8Fs that have been idle for the entirety of the pandemic. That is set to change now as both aircraft are earmarked to enter the fleet of Russia-based AirBridgeCargo, where they will fly for Hongyuan, AFG told Cargo Facts [FATs 006705-6710]. [caption id="attachment_6751" align="alignright" width="400"] Aircraft Finance Germany (AFG) has acquired two 747-8Fs from Saudia. Photo/Saudia Cargo[/caption] Prior to the pandemic, Saudia had decided to sell the pair of 747-8Fs to consolidate its own-operated freighter fleet to a single type — the 777F. AFG initially responded to a request for proposal (RFP) issued by Saudia in December 2020, and only this year did Hongyuan enter the picture. “A lot of people shied away from these assets, because of the fact that they have been sitting in Jeddah for so long,” Christian Nuehlen, CEO of Air Finance Germany, told Cargo Facts. AFG dispatched a team and determined that the required heavy checks would not be an insurmountable issue to overcome. “We felt quite confident that the aircraft are good assets,” Nuehlen said. Other airlines had looked into acquiring the aircraft as they were the only 747-8Fs on the market but were deterred by the price and engine status. One executive representing a U.S.-based 747F operator told Cargo Facts the inflated book values made the freighters “awfully expensive.” Additionally, the GEnx-2B67 engines have likely been configured to suit the climate and environment of Saudia’s JED hub and could rack up maintenance requirements at the time of service. An engine expert told Cargo Facts the engines were delivered with a 15% derate at delivery — essentially an intentional performance reduction to prolong the life of the engines operating in hot and sandy conditions. For hot and heavy flights, operators can reduce this derate to increase thrust — but doing so is taxing on the engine. “Every flight at max payload and where outside temperatures are high, they will use this additional power, but this will burn up the engines real quick in that harsh environment,” the source said. “Overall, including the engines, the aircraft were — and are — in really good shape,” Nuehlen said. That is not to say significant maintenance won’t be required. “Both aircraft will need a D-Check, a landing gear overhaul and quite a bit of work before they can enter into commercial service,” said Nuehlen. Despite the intensive maintenance required, the lessor expects to ready the first aircraft by the end of this year and is aiming to have both aircraft operating by early next year. For now, both aircraft remain at JED, and while AFG did not specify which MRO facility will handle the heavy D-Checks, Cargo Facts notes that Volga-Dnepr Technics (VDTs), the maintenance arm of the group, operates an MRO at Sharjah (SHJ) airport in nearby United Arab Emirates. AirBridgeCargo hinted at the acquisition last week at Cargo Facts Symposium. “Whatever is available [on the market] will be snatched momentarily, and that will continue to be the case for at least the next two to three years,” said Konstantin Vekshin, chief commercial officer at Volga-Dnepr Group, during a roundtable panel discussion on widebody freighters. “Those airplanes are unique assets now and are hard to replace,” he said, referring to the nose-loading capability of the 747-8F. By Volga-Dnepr’s estimates, substantial retirements between now and 2033 will dramatically winnow the An-124 and 747-400 fleets. Although Airbus and Boeing are developing new production large widebody freighters , operators aren’t yet convinced these new models will be up to handling large and heavy shipments. “We will have just about 100 airplanes capable of carrying outsized cargo ten years from now, that worries us quite a bit, more than anything else,” Vekshin said.

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