Cargo Facts Asia: New large widebody freighter conversion programs ahead?

[caption id="attachment_15551" align="alignright" width="450"] Who might launch a 777-300ER conversion program? Perhaps not FedEx, but the aircraft could be ideal for expanding from regional to international markets.[/caption] At Cargo Facts Asia in Shanghai, representatives from Boeing and EFW discussed the likelihood of a 777 passenger-to-freighter program – or even an A380 conversion program – in the near future. This is hardly the first time a 777 P-to-F program has been discussed. At last year’s Cargo Facts Symposium , held in San Diego last October, discussions among appraisers and attendees indicated that while 777-200ERs may offer the best value proposition from a hypothetical conversion cost perspective, most operators expect the 777-300ER will be the superior conversion candidate thanks to its larger capacity offering greater value over the life of the aircraft. As to who might launch such a program, both IAI Aviation Group and Boeing have said they are evaluating the viability of such a program, although comments from IAI’s VP Marketing, Rafi Matalon, at Cargo Facts Symposium suggested that the launch of such a program from IAI could be at least another four to five years in the future. In the same vein, Boeing said earlier this year that no decision has been made on a 777-300ER passenger-to-freighter conversion program. However, during a panel discussion on the passenger-to-freighter conversion market at Cargo Facts Asia this week, Alvey Pratt, Director, Boeing Converted Freighters & Complex Modifications, Boeing Global Services, noted that interest has grown from customers approaching the OEM to discuss 777-300ER conversions. Pratt also provided some insight into the decision-making process involved in evaluating such a program. Like the 777 production freighter, a converted -300ER “would have big play in the international spectrum,” Pratt said, adding that converted 777 freighters would provide long-haul capacity for package freight, opening up package markets that will “shift from being regional to penetrate other foreign markets.” Considering that FedEx has been the largest customer for the 777 production freighter to date, and keeping in mind SF Express’ own plans to greatly expand its widebody freighter fleet, a converted freighter option for the 777-300ER could be a boon to large regional operators like SF Express – or perhaps even Amazon Air – looking to upguage its widebody capacity. And, of course, Pratt mentioned the most important point regarding consideration of any P-to-F conversion – “What would be the right total cost for an operator, from acquisition to conversion, and does our business case make sense?” Given the robust demand for the 777 production freighter, which last year saw a record of forty-five orders, and the uncertain future of the 747-8F program, with UPS as the only known customer for outstanding orders, the time seems ripe for a new program to emerge. In an interesting, but still unlikely, development, that new program might be for the A380. Though fewer of the type have been produced compared to the very popular 777-300ER (235 compared to 803, specifically), Airbus had initially intended to offer the A380 as a freighter, but that program was discontinued. During the discussion, Wolfgang Schmid, VP, Sales & Marketing for Airbus Freighter Conversion with EFW said he is still hearing demand for the A380 as a freighter, but acknowledged that making it reasonably priced will be a challenge. “I still have my doubts as to whether it makes economic sense to convert it, but I do have customers who have approached me with interest,” he said, adding that as an A380 maintenance facility, EFW could feasibly handle the conversions, but has not yet done an assessment of such a program.

Cargo Facts Asia: New large widebody freighter conversion programs ahead?

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