Challenge Group tests 2nd B777-300ERSF

Challenge Group, an all-cargo carrier holding three air operator certificates (AOCs), has completed the post-conversion test flight of its second Boeing 777-300ERSF, marking another milestone in its fleet expansion built around Israel Aerospace Industries’ (IAI) passenger-to-freighter conversion programme, known as the Big Twin.

The aircraft follows Challenge Group's first 777-300ERSF, registered 9H-CAZ, entered service in February 2026 under the group's Maltese subsidiary, Challenge Airlines MT. That delivery made Challenge Group the first operator of a Boeing 777-300ERSF under an EASA-region air operator certificate. The second aircraft is expected to enter service shortly.

IAI is carrying out the conversions at its Tel Aviv facility under its 777-300ERSF programme. Each converted aircraft can carry close to 100 tonnes of cargo and is designed for high-volume, complex freight, including pharmaceuticals, live animals, dangerous goods, and oversized shipments.

Challenge Group’s 777-300ERSF pipeline extends well beyond the two aircraft already converted. Its passenger-to-freighter fleet build-up, launched in May 2025, includes four firm orders with options for four more. In January 2025, the group signed a deal with lessor AerCap for two pre-converted 777-300ERSFs, and in October 2025 it entered into an ACMI agreement with Kalitta Air to operate an additional aircraft.

Challenge Group has acquired five former Jet Airways Boeing 777-300ERs as feedstock for freighter conversions, investing over $107 million across two purchase tranches. The latest two aircraft were secured in April 2026 for $61 million via India’s insolvency process and e-auction, bringing the total acquisitions to five. Parked since Jet Airways’ collapse in April 2019, the aircraft are awaiting deregistration and return-to-service clearance from the Directorate General of Civil Aviation (DGCA) before being ferried to IAI’s Tel Aviv facility for conversion.

Taken together, the pipeline positions Challenge Group to eventually operate eight Boeing 777-300ERSFs. At present, the group’s operational fleet totals 10 aircraft, comprising five 747s, four 767s, and one 777-300ERSF, with one 747 currently parked. The future fleet of 18 aircraft includes the five former Jet Airways 777-300ERs acquired for the ‘Big Twin’ passenger-to-freighter programme — three parked in Mumbai and two in Delhi — alongside the second 777-300ERSF now undergoing test flights and a third to be operated under an ACMI agreement with Kalitta Air.

These acquisitions form part of the group’s broader fleet modernisation and growth strategy, aimed at strengthening global trade connectivity and delivering integrated logistics solutions.

Challenge Group traces its roots to 1976, when it was founded as CAL Cargo Airlines in Israel to transport agricultural exports to Europe. Chairman Offer Gilboa acquired the business in 2010, restructured it, and rebranded it as Challenge Group in 2020. Its Israeli airline arm was renamed Challenge Airlines IL in 2022. The group now operates three airlines across Israel, Belgium, and Malta, alongside ground handling, road feeder, leasing, and maintenance divisions.