Page 30 - STAT August 2022 for Magzter

report
E-COMMERCE
STRONGEST FUNDAMENTAL
DEMAND DRIVER FOR
FREIGHTER CONVERSIONS
The P2F conversion
market is at a crossroads.
Accelerated by the Covid-19
pandemic, there is an
increased demand for
freighter conversions while
experts are cautious due to
a potential oversupply. The
industry is looking forward
to seeing how this will
turn out as the passenger
belly capacity is coming
back and the increased
e-commerce movements
is forecasted to push the
demand up.
Libin Chacko Kurian
28
28 | AUGUST 2022 www.stattimes.com | AUGUST 2022
he recent ‘Freighter Conver- scape for freighter conversion programmes
sions Market 2022’ report by is becoming increasingly crowded, so his
360 Market Updates reads, “The
Tglobal freighter conversions impression is that "announcements for
new conversion programmes will slow
market size is projected $400.1 million in down and the STC (Supplemental Type
2022 and is forecasted to the size of $841 Certificates) holders will be in execution
million by 2028, with unexpected a CAGR mode to achieve their goals.”
“There are several conversion pro-
of 13 percent.” grammes that are still under development
The aerospace consulting firm Aero-
Dynamic Advisory in March 2022 analysis but are expected to be completed in the
projected that the volumes of converted coming years, like the Mammoth 777, KMC
freighters will grow from ~70 aircraft per year 777, IAI A330, C-Cubed A320/321, Sine Draco
pre-Covid to over 180 per year by 2025, and A321, and the E-Jet Freighter. Moreover,
~160/year on average for the entire decade.
there are ambitious plans to ramp up con-
It also reads, “This rapid increase in output version capacity in the face of labour and
is enabled by a significant amount of new supply chain challenges,” he said.
capacity for conversions being added to the The biggest thing in the conversion
market – our firm estimates that nearly 30 market, according to Aerovista’s vice presi-
dent of asset management Yuriy Tokarev
new conversion lines will be opened by 2025
compared to 2020.” is overheating and oversupply. Aerovista
The senior associate at AeroDynamic
Advisory Mike Stengel thinks that the land- is an aircraft leasing, trading and asset
management firm.
www.stattimes.com