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Freighter Fleet Forecast

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Emerging Markets consideration is feedstock: Popular Asia Pacific Region to Lead Freighter Deliveries laboration even established a dedicated
and Startups passenger airplanes become readily conversion line for us in Belgrade."
available for conversion as passenger
Emerging-market cargo airlines and airlines release them, and there are New and Converted Airplanes However, Challenge Group is consider-
2022–2041
startups share several attributes: simply more of them in the fleet. But ing to withdrawing from a deal to acquire
• They often serve markets with small feedstock availability is not the only 1,200 38% Percent of World Total three Boeing 777-300ER passenger planes
formerly owned by Jet Airways, which
cargo volumes. determinant. Other factors, such
as required structural modifications have been parked in Mumbai since the
• Their networks are still in the early or technical issues, may limit an 1,000 32% airline's collapse in 2019. The deal, worth
stages of development, with limited airplane type’s passenger-to-freighter $47 million, has been delayed for two
opportunities for load building and conversion viability. years despite court orders to hand over
sixth-freedom operations. 800 the planes to the Challenge Group.
• They are more sensitive to acquisition Regional Outlook Challenge Group made this acquisi-
costs than operating costs. Regionally, the Asia-Pacific market 600 tion bid through its Malta-based airline
Because of their small cargo volumes forecast holds the highest traffic 16% – Challenge Airlines MT – which received
its Maltese Air Operator Certificate (AOC)
and sensitivity to acquisition cost, growth, as carriers continue to build 400
startups and emerging market out their express networks and supply 9% in 2022 and currently operates a fleet of
operators gravitate toward standard chain support needs. For the region three B767-300F aircraft.
body freighters, which cost much as a whole, the total freighter fleet is 200 5% The Malta-based airline has paid a $5.6
less to purchase than other types of forecast to become roughly the same million deposit, which it now wants back
freighters. Similarly, these airlines favor size as the North American fleet by the with interest if the deal falls through. The
converted airplanes, given the limited end of the forecast period. This will Asia Pacic North Europe Middle East Latin aircraft are in a worse technical condi-
options and higher costs of purpose- represent growth of over three times America & Africa America tion than when the bidding started, and
built freighters. the pre-pandemic fleet. In contrast, New Large Widebody, making them airworthy again would be
the more mature North American fleet Widebody Conversions, time-consuming and costly. Ace Aviation,
While there is a niche for the is projected to grow by one third, but New Medium Widebody
conversion of airplane types that have it will need roughly as many deliveries Standard Body Conversions a subsidiary of the Malta-based Challenge
not proved popular in passenger as Asia-Pacific to efficiently and Group, has filed an appeal in the National
operations, more conversions are sustainably replace the existing fleet. Source: Boeing Market Analysis CMO 2022 – Forecast period 2022–2041 Company Law Tribunal (NCLT), which has
based on widely used types. One directed the monitoring committee to file
Honeywell notes that air cargo demand The first aircraft (prototype), which a response to the plea on May 17, 2024.
has increased pre- and post-COVID-19. was converted under the ‘The Big Twin’ On the other hand, the Mammoth 777-
However, airlines converting their pas- programme, was originally operated by 200LRMF is the company's main freighter
senger fleet to cargo must consider Emirates. The programme claims that the product. Once certified, it will offer the
compliance, safety, fuel efficiency, route converted freighter has 25% more cargo high payload and utility needed for
optimization, and weight reduction. Hon- capacity than the original B777F and 21% general cargo operators worldwide. Mam-
eywell offers plug-and-play upgrades for lower fuel consumption than the B747F. moth claims that it is affordable, flexible,
extended fleet life. The conversion process was completed and purpose-built. Additionally, Mammoth
in early 2023, with the prototype making states that its 777-300 ERMF can carry 14%
Key players and programmes in its first public appearance at the Dubai more volume than a 747-400F, 81% more
108
World Air Cargo Forecast 2022–2041 the P2F conversion space Airshow in November 2023. AerCap has volume than a 767-300BCF, and 43% more
Several companies are at the forefront of firm orders for 20 B777-300ERSF (Extended volume than an MD-11F.
passenger-to-freighter conversions. For Range Special Freighter, also called Big KMC has designed the 777-300ERCF
example, IAI has initiated a conversion pro- Twin) aircraft and ten options, with buyers freighter with an innovative forward-
gramme for the Boeing 777-300ER called including Emirates SkyCargo, Challenge door design, minimising empty weight
"The Big Twin," which has already secured Group, and EVA Air Cargo. IAI is expand- and maximising payload. The FAA has
orders for 20 aircraft and 10 options. ing its conversion facilities globally, with accepted the certification plan, reducing
In 2019, the first-ever P2F Boeing 777- new sites in South Korea, Abu Dhabi, and the risk of design changes and delays. By
300ER conversion programme, a collabora- Arizona to meet the growing demand for placing the main cargo door forward of
tion between AerCap Cargo and IAI, known widebody freighters driven by the boom- the wing, KMC's design reduces empty
as ''The Big Twin,'' was launched. The first ing e-commerce industry. Recent reports weight, leading to higher payload revenue
converted Boeing 777-300ER was revealed suggest IAI is considering launching a on longer routes and fewer modifications
in Kalitta Air livery and is ready to enter conversion programme for the Boeing 787 required. The forward door also provides
the market. This conversion programme, as it weighs up future projects. easier cargo handling, with improved
launched in 2019 by GE Capital Aviation Ser- Regarding conversion programmes, access and more cargo ramp area, and
vices (now AerCap) in partnership with IAI, Challenge Group’s Zak added, "A no- features a robust floor designed for cargo
faced delays due to the COVID-19 pandemic table example is our partnership with durability. The design also includes a rigid
but is expected to receive FAA certification IAI, through which we converted 767 cargo barrier and a supernumerary cabin
by the end of 2024. passenger planes into freighters. This col- with crew rest and galley facilities.
14 | AUGUST 2024 www.stattimes.com