China nascent narrowbody conversion companies – like their US and European counterparts – were hit hard. But as the industry recovers and as more airlines take delivery of their A380s and Boeing’s Dreamliner 787 reaches customers by the end of 2010, more airframes are expected to become available for passenger to freighter conversions over the next few years.

Xiamen-based Taikoo (Xiamen) Aircraft Engineering Company Limited (TAECO), based in Xiamen, sister company of Hong Kong-based Hong Kong Aircraft Engineering Company Limited (HAECO), and another sister company, Taikoo (Shandong) Aircraft Engineering Company limited (STAECO) based in Jinan, which are market leaders in freighter conversions in China, declined comment about the business.

Guangzhou Aircraft Maintenance and Engineering Company, Ltd. (GAMECO), another MRO facility operate in Guangzhou, successfully completed the first A300-600 passenger-to-freighter conversation outside Europe in February2009, but it also declined to comment.

Conversion orders
While most airlines kept their conversion plans on the sidelines during the global recession, Hainan Airlines, a subsidiary of HNA Group, placed orders to convert six B737-300 passenger aircraft to freighter configuration last year. The deal was made public on 2 February 2010 with Hainan Airlines announcing that it had struck an agreement with STAECO and Pemco World Air Services, Inc., to carry out the conversions.

Under the deal, STAECO and Pemco completed the entire conversion deal recently this year, the second time that Pemco has partnered with the HNA Group in a multiple aircraft conversion deal for its subsidiaries Yangtze River Express and Hong Kong Airlines Cargo. The conversions enabled the airlines to increase their regional and domestic air cargo capacity. An official of Yangtze River Express, which presently has a freighter fleet consisting of nine B737- 300s and three B747-400s, says: “We plan to buy a B747-400 for conversion in September,” but declined to provide details. Yangtze River says it took delivery of a passenger-to-freighter conversion aircraft from STAECO on 30 July 2010 and has since put it into service.

TAECO
In April 2009, Boeing and TAECO redelivered to Air China Cargo its first B747-400 Boeing Converted Freighter, the first of three B747-400BCFs ordered by the airline. The B747-400BCF has positions for 30 pallets on the main deck — volume which is comparable to the B747-400 production freighter. The airline has since taken re-delivery of its second B747-400BCF early this year and the third on 20 July 2010, sources said.

Boeing facility
Aside from conversion orders, the global recession’s impact on conversions was felt by Boeing Shanghai’s first-phase construction of its aircraft maintenance, repair and overhaul (MRO) facilities in Shanghai, which was completed in October 2009.

Boeing Shanghai Aviation Services Co, was planned as a major base for Boeing to convert B767-300 passenger jets into freighters. And as to its initial major task of carrying out conversions, Boeing Shanghai declined to give a timeline for the passenger-to-freighter conversion project. Instead, Boeing officials said the facility was a long term investment, and the company believed that it should get ready for the re-boundin the market.