747-400Fs find new life amid industry transition

The production 747-400F continues to capture the interest of large-widebody operators globally, even as the industry transitions to twin-engine freighters. Most of this interest stems from carriers that already operate the 747-400 freighter — whether production or converted — and have not publicly expressed firm plans to replace it. The factory-built freighter design by Boeing incorporated a nose-loading system, enabling the large-widebody freighter to carry larger payloads a converted 747F cannot load through its side cargo door. With growing passenger demand for 777-300ERs decreasing available feedstock for 777 conversion programs, carriers operating the 747-400F are opting to add more of the type to their fleets. In the first quarter of 2024, Cargo Facts reported that eight factory 747-400Fs were being sold to four different carriers. Five of those aircraft belonged to Taiwan-based China Airlines, which disclosed deals to sell three to Air Atlanta Icelandic and two to South Korea-based Asiana Airlines . [caption id="attachment_56867687" align="aligncenter" width="2560"] Asiana is receiving four production 747-400Fs. (Photo/Cargo Facts)[/caption] The deal with Air Atlanta Icelandic was worth not more than $83 million, and the transaction with Asiana was for not more than $55 million, China Airlines said in stock exchange filings. Using those maximum values, each of those 747-400Fs is worth an average of $26 million to $27 million, roughly in line with aviation finance advisory firm mba Aviation’s valuation. Meanwhile, China-based SF Airlines told Cargo Facts it has purchased two 747-400Fs that were previously with China Cargo Airlines. The two 747-400Fs will make SF Airlines mainland China’s largest operator of the type, with four aircraft. Global interest in 747-400Fs grows Malta-based Challenge Group finalized a deal with AviaAM Leasing to buy a 1994-vintage 747-400F previously in operation with Air Atlanta Icelandic. Challenge Group placed the aircraft (26563) on its Israel-based Challenge Airlines IL certificate to meet growing demand. “It goes to show the trust that we have in the 747-400F and its ability to serve the demand in the market compared to other types,” Chief Commercial Officer Or Zak said during a panel on widebody freighters at Cargo Facts EMEA 2024 in February. Challenge is not looking to move away from the 747-400F completely and believes that, even with increasing regulatory requirements, some of the quad-engine freighters have twenty years of service remaining, he said. After buying three 2003-vintage ex-China Airlines 747-400Fs, Air Atlanta Icelandic now operates a fleet of fourteen quad-engine freighters. The purchase demonstrates the carrier’s long-term commitment to the type, Chief Executive Baldvin Mar Hermannsson said in a March 13 press release, although he also told Cargo Facts that the airline is still interested in 777 conversions. Air Atlanta Icelandic is among a few operators with a fleet of 747-400Fs powered by Rolls-Royce RB211, Pratt & Whitney PW4000 and General Electric CF6 engines. Like Air Atlanta Icelandic, Asiana Airlines continues to incorporate younger production 747-400Fs to sustain its long-term fleet strategy and might retire its older converted 747s. In addition to buying two ex-China Airlines 747-400Fs, it said it will lease two from Jetran. These four will be included in the sale of the Asiana Cargo business, as part of the agreement with the European Commission to divest the cargo business before Asiana can be acquired by Korean Air. Jetran has also been buying China Airlines’ 747-400Fs as they have come up for sale. The trader and lessor acquired another (30766) in February that may end up with Asiana. The recent moves involving 747-400Fs show that a growing number of carriers believe the benefits still outweigh the costs of operating the quad-engine freighter and could be on the lookout for more units. Carriers to watch One of those carriers is Orlando, Fla.-based National Airlines. It purchased its third production 747-400F from Jetran in 2023 and told Cargo Facts at the time that it expects to have the ex-China Airlines unit (30763) operational this quarter. Unit 30763 was ferried from Taipei (TPE) to Victorville (VCV) in April 2023 and then to Waco, Texas (CNW), in November. It is one of several 747-400Fs the Horseshoe Bay, Texas-based lessor purchased in 2023. [caption id="attachment_56867686" align="aligncenter" width="1225"] National Airlines acquired two production 747-400Fs previously with AirBridgeCargo and CargoLogicAir. (Courtesy/Telair)[/caption] National secured two other CF6-powered 747-400Fs in 2022 after sanctions tied to the Ukraine-Russia war were imposed. Those units had been operated by CargoLogicAir (33749) and AirBridgeCargo (35237). Another ex-CargoLogicAir 747-400F (32870) was acquired in 2023 by United Arab Emirates-based Aerotranscargo. Because the airline and its affiliates only operate 747 freighters, it could be looking to expand its freighter fleet, which consists of two 747-400Fs, three 747-400BCFs and three 747-400BDSFs. The carrier may place unit 32870 on lease to its U.K.-based affiliate One Air when the production freighter returns from maintenance. One Air began commercial flights in July 2023 with a 1991-vintage 747-400BDSF (25075, ex-ACT Airlines) on lease from Aerotranscargo, and added another (24998, ex-Air Cargo Global) toward the end of the year. Turkey-based ACT Airlines has been scouring the market for used 747-400 freighters for at least a couple of years, with a preference for production freighters. It operates two 747-400Fs on behalf of Qatar Airways and provides service for Turkish Cargo with two 747-400BDSFs. ACT transferred a 2001-vintage 747-400F (26559, ex-Singapore Airlines) to its affiliate, Bulgaria-based Compass Air Cargo, in Q4 2023 to provide ACMI services for Qatar Airways . Both carriers are owned by Turkish entrepreneur Daglar Cizmeci. Compass is open to adding more 747Fs but has not finalized a deal for its next aircraft, the carrier previously told Cargo Facts in October 2023 . Releasing 747-400Fs from service China Airlines used to be one of the largest operators of production 747-400Fs but has removed about eight from its fleet over the past two years. Most, if not all, of those aircraft have found new homes. The airline plans to keep eight of the production freighters for up to four more years, it told Cargo Facts at the IATA World Cargo Symposium 2024 in Hong Kong this month. In Central Asia, Silk Way West recently topped up a 777F order it placed with Boeing in 2021, agreeing in February to buy one more of the type. That freighter is scheduled to arrive in 2025 and will replace the Pratt & Whitney-powered 747-400F (29902, ex-Malaysia Airlines) the carrier removed from service in February. As part of its transition to large-widebody, twin-engine freighters, Silk Way placed orders with Airbus and Boeing in 2022 for two A350Fs and two 777-8Fs , with options for two more of each type. The airline plans to phase out 747-400Fs by 2028, it recently told Cargo Facts . Air France-KLM joined the list of carriers retiring the 747-400F when it announced in January 2023 an order with Airbus for four A350Fs to replace the 747-400Fs based in Amsterdam (AMS) and operated by subsidiary Martinair. [caption id="attachment_56867688" align="aligncenter" width="2560"] One Air now operates two 747-400BDSFs. (Photo/Cargo Facts)[/caption] More units on the way In addition to China Airlines, several large 747-400F operators are set to become sources of well-maintained units in the next few years. In 2021, Singapore Airlines became the first operator to announce plans to retire its seven 747-400Fs, when it ordered seven of Airbus’ new A350Fs. Luxembourg-based Cargolux and Hong Kong-based Cathay Pacific are also set to retire their older nose-loading 747-400Fs as they transition to large twin-engine widebodies. Cargolux finalized plans to replace the 747-400F in October 2022 when it firmed up an order with Boeing for ten 777-8Fs, with an option for six more. The airline has sixteen -400Fs and fourteen -8Fs. Meanwhile, Cathay Pacific reached a deal with Airbus in December 2023 to acquire six A350Fs, with an option on twenty more. The airline operates fourteen 747-8Fs ranging from 2011 to 2016 vintage and six production 747-400Fs of 2008 and 2009vintage with PW4000 engines. As the 747-400F transitions from its role as the primary large-widebody freighter globally, Cargo Facts expects to see more of the type moving to other airlines. The quad-engine freighter will continue to serve a niche market that favors its lower acquisition cost as well as its nose-loading capability to transport heavy payloads — a feature that even the new A350F and 777-8F do not offer. Don’t miss our two upcoming events that are essential for stakeholders in Asia and Latin America: Cargo Facts Asia 2024 , taking place April 15-17 in Singapore, and Cargo Facts LATAM 2024 , taking place May 13-15 in Panama City. Register by March 29 to take advantage of early-bird pricing for CF LATAM.

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