CFS: IAI launches A330-300 conversion program

[caption id="attachment_414831" align="alignright" width="692"] Cargo Facts Symposium 2020 panelists discuss “Big birds and plenty of pallets: Will renewed interest in widebody freighters last?”[/caption] Israel Aerospace Industries’ ( IAI’s ) next passenger-to-freighter conversion program will be the A330-300. During a widebody freighter panel discussion at Cargo Facts Symposium 2020 , Rafi Matalon, VP and general manager marketing of IAI’s Aviation Group, announced to a virtual audience that the conversion house sees the A330-300 variant as the successor to the popular 767-300 freighter conversions. “The next target for our program will be the A330-300… which will be the first Airbus [conversion] for our family,” Matalon said. The company’s current-generation programs include the 737-700, 737-800, 767-200 and the 767-300. IAI also said it has not shut down its 747-400 program. Apart from the programs for which IAI already possesses an STC, the company is also in the process of developing a program for the 777-300ER. Following the session, IAI clarified to Cargo Facts that it plans to be in market with the A330-300 freighter by Q4 2023. Late 2023 “is the right time” in terms of aligning with declining availability for 767-300 feedstock, and cheaper feedstock options for the A330-300, according to IAI. Technical specifications and other details have yet to be announced. Currently EFW has the only active A330 conversion program for both the -200 and -300 variant. Operators and aircraft appraisers familiar with the A330 platform agreed with IAI’s assessment of the -300 as the logical replacement for the 767-300. However, the program’s popularity as a conversion candidate will likely be constrained while 767-300 feedstock remains available. Michael Steen, EVP and CCO, Atlas Air Worldwide, told Cargo Facts Symposium attendees that express companies and operators need to make adjustments to their infrastructure to accommodate an A330 freighter. “The aircraft doesn't necessarily fit into the infrastructure and tarmacs and loading infrastructure,” said Steen. “And so that’s why you see a bit of a delay here.” A330 feedstock pricing is another variable holding back conversions of the type. Even as values for the airframe are declining, some investors continue to wait. “I would rather wait a little bit before investing in this airplane,” said Bert van Leeuwen, managing director, head of research, global aviation finance division of MUFG Bank, at Cargo Facts Symposium. “I expect the A330-300 on the shows will go down quite dramatically, and maybe even to the to the $10-15 million [mark],” van Leeuwen said. In the near term, van Leeuwen is concerned that a rush to A330-300 conversions could saturate the market before demand for the freighter is there. Absent decent placement prospects for A330-300s in passenger configuration, investors may “kick the can, and try to put those into conversion.” The result could create an oversupply of freighter capacity, “when things go back to normality…and we see a lot of passenger widebodies flying again,” said van Leeuwen. “Eventually this plane will be there, but now is not the right time yet to strike,” he said.

CFS: IAI launches A330-300 conversion program

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