Boeing sees huge potential for P2F over next 2 decades

 Boeing sees huge potential for P2F over next 2 decades

Replacement of aging airplanes and freighters in-demand for e-commerce and other services is likely to create a demand for 2,610 freighters in the next two decades, according to the new Boeing Commercial Market Outlook.

“Of these, 890 planes will be production freighters. The remaining 1,720 freighters are forecast to be passenger-airplane conversions. The freighter fleet will increase by 70 percent from 2,010 airplanes in 2019 to 3,435 airplanes by 2040,” the report said.

Air cargo traffic declined 9 percent in 2020 following a 3 percent decline in 2019 due to the economic downturn and disruptions caused by the pandemic, Boeing said in its statement. “Air cargo traffic is now above 2019 levels. Accelerated e-commerce growth, supply chain disruptions, and severe maritime challenges are contributing to a robust air cargo market recovery.”

Boeing, which has a near monopoly in the production freighter market, has a plan for a freighter version of its yet to be operational passenger jet B777X. 

Airbus, one of the world's largest airplane manufacturers, has firmed up plans for the freighter version of its successful passenger jet A350 with interest from the likes of global cargo giants DHL and UPS. 

In the latest development, Mammoth Freighters, a Florida-based company founded in December 2020, is promising to offer a P2F conversion programme for both Boeing 777-200LR and 777-300ER.

With continued lockdowns and uncertainties over reopening of the global economies, the airline industry continues to face new challenges. And cargo is turning out to be a saviour for the industry. Airline chief financial officers and cargo chiefs are positive on cargo demand for the rest of the current financial year and the next year, according to an International Air Transport Association (IATA) survey done last month.

The survey found 72 percent respondents expecting cargo demand to increase for the coming 12 months, an improvement compared with the previous survey (56 percent).

Etihad Engineering and Israel Aerospace Industries team up for P2F Conversions

 Etihad Engineering and Israel Aerospace Industries team up for P2F Conversions

Etihad Engineering has signed a strategic partnership with Israel Aerospace Industries (IAI), to provide Passenger to Freighter (P2F) conversions on Boeing 777-300ER’s.

In 2019, IAI and GE Capital Aviation Services (GECAS) announced the launch of the Boeing 777-300ERSF, a programme which established a P2F conversion dubbed ‘The Big Twin’ denoting its status as the largest ever twin-engine freighter.

While the Covid-19 pandemic has taken its toll on the aviation sector, cargo operations are offsetting operators’ losses, as it continues to play a critical role in facilitating international trade. As a result, industry forecasts show an increase in demand for wide-body freighter aircraft with long-haul capacity. 

Etihad Engineering will capitalise on their expertise and extensive capabilities for the specialised Boeing 777-300ERSF conversion. In the initial stage of the partnership, Etihad Engineering will facilitate towards two conversion lines accommodating multiple aircraft conversions per year. 

Tony Douglas, group chief executive officer, Etihad Aviation Group said, “The Boeing 777-300ERSF is not only extremely attractive to customers but a technological breakthrough, given that it’s the first in its size category to offer extensive cargo solutions. Not only do we see the demand, but we view it as a greener, more profitable, highly innovative solution for our airline customers, and an excellent way to drive value for our business.”

Abdul Khaliq Saeed, chief executive officer, Etihad Engineering said, “We are delighted to announce our partnership with IAI which maximises the potential of our highly skilled workforce and reinforces Etihad Engineering’s position as a centre of excellence in Abu Dhabi in line with Abu Dhabi’s economic vision 2030. Our commitment to the P2F programme demonstrates our confidence in the ability of IAI to deliver long-term value enhancement of the B777-300ER’s in the global fleet.”

Boaz Levy, President and CEO, Israel Aerospace Industries said, “The Abraham Accords have given IAI the opportunity to expand its global activity to the Gulf region. IAI is active in over 100 countries across the world. Establishing the conversion site in partnership with Etihad Engineering is a testament to IAI’s strong ties with the UAE and strengthens its foothold in the region. I am confident that this agreement will lead to many more partnerships with local companies in the Gulf States, which will grow our business in the region.”

Ethiopian Airlines Group and Israel Aerospace Industries announce cargo conversion program

 Ethiopian Airlines Group and Israel Aerospace Industries announce cargo conversion program

Ethiopian Airlines Group in partnership agreement with Israel Aerospace Industries (IAI) announces a global standard cargo conversion program to convert the passenger-to-freighter (P2F) B-767-300 ER to dedicated freighter services.

Ethiopian Airlines Group chief executive officer, Tewolde GebreMariam, said, ‘’In line with our Diversified Aviation Business Model of Vision 2025, we have been increasing our cargo capacity in fleet, ground service infrastructure and cargo connectivity network.  Accordingly, we are partnering with IAI, one of the global technology leaders in the Aerospace industry, in building a cargo conversion center in our MRO facilities in Addis Ababa Airport.  The Cargo conversion center will commence its first business with three Ethiopian Airlines owned B-767-300 aircraft. The Cargo Conversion Center in Addis Ababa airport will expand its services to all airlines in Africa and the wider region. We are very happy that we are able to collaborate with IAI to enable us to expand our cargo and logistics services which is already the largest and leading cargo network in Africa. The capacity building will also help us expand our MRO services with cutting edge technology and knowledge transfer.”  

Yossi Melamed, IAI's Executive VP and general manager of Aviation Group said, “We are witnessing a sharp rise in the demand for cargo aircraft as a result of the rise in e commerce, which has peaked to record levels during the COVID-19 pandemic. IAI has an excellent reputation as a conversion center of passenger-to-freighters aircraft, and we are constantly receiving requests to open such conversion centers in more and more locations around the world.  I am excited by the opening of the current center in Ethiopia and thank my colleagues in Ethiopian Airlines for the trust they have put in IAI’s Aviation Group, as the world’s leader in conversions." 

The new passenger-to-freighter (P2F) conversion centre, which will operate from the Ethiopian MRO centre in Addis Ababa, will provide solutions for the rising demand for cargo aircraft of B767 models. The conversion line in Ethiopia will join existing conversion sites IAI operates at its campus in Ben Gurion International Airport and in Mexico.  

It is to be recalled that Ethiopian MRO, with its internal capacity, temporarily converted 25 of its passenger aircraft to freighter to boost its cargo capacity as demand to transport emergency medical supplies soared.