The Boeing-licensed Hong Kong Aircraft Engineering Company Limited (HAECO) declined to provide details about its passenger-to-freighter conversion programme in China, but it is understood that a number of potential customers for aircraft conversions could not carry out their plans in the last two years due to lack of availability of passenger aircraft, the situation is improving.
As to whether the global economic crisis had impacted EADS EFW’s freighter conversion industry last year, Schmid says: “Actually yes and no. Due to the crises our customers had no chance to acquire airframes as passenger airlines did not replace their older equipment.
“No Airbus widebodies were on sale on the market for a long time. In other words there was no feedstock for the conversion. So, crises had no chance to touch our business directly. Still our major problem is to source suitable airframes for conversions for our customers,†he says.
According to Airbus’ forecast, air freight will represent an increasing part of global freight transport services. In the next two decades, the average annual world wide air freight growth is forecasted at 6 per cent. The world freighter fleet is predicted to more than double as air freight will more than triple.
“More than 3,000 additional freighters will be needed to accommodate traffic growth and to allow fleet renewal – three quarters of this demand will be satisfied by the conversion of mid-life passenger aircraft. The conversion of passenger aircraft into freighters offers an economic alternative to the purchase of new freighter aircraft,†EADS says.
“Within EADS, EFW is the centre of competence for the conversion of Airbus passenger aircraft into freighters. Since mid-1996, Airbus A300 and A310 aircraft have been converted into freighters at EFW in accordance with a concept developed by the former DaimlerChrysler Aerospace Airbus GmbH, now Airbus Deutschland GmbH. Today, EADS EFW is the market leader in this segment,â€ÂAirbus says.
Trend
Schmid says he sees larger aircraft playing a more important role in the market. “The green factor may influence the cargo world as well. But, due to lower utilisation of most of the freighters, it does not play an important role.â€Â
He says replacing older aircraft would be the most logic step to become environmentally friendly in the aviation industry. “But, in the present low margin freight environment and low utilisation of the freighters, it is still a challenge to meet those targets,†he points out.
Orders
Regarding orders in the near future, Schmid says: “We see more need for modern aircraft. Whilst the US market is still the largest one, in Asia you see the highest growth.â€Â
EADS EFW does not feel threatened by the growth of MRO companies in China because it is very specialised in Airbus freighter conversions. “Our further advantage is that we work very close with the OEM and we do have the same parent company. So far there is no competition,†Schmid adds.
The list price of converting an A300- 600 passenger aircraft into a freighter is about US$10 million.
Schmid says he believes that the A330 conversions will become the most successful conversion programme, and also the conversions of A320/A321s.
At EADS EFW, it combines various aviation and technology activities under a single roof to support the conversion of passenger aircraft into freighter configuration as well as other services.
The company has a workforce of more than 1,100 employees, achieved in 2009 revenues of more than € 170 million. As of today, EADS EFW says more than 160 freighter aircraft have been converted for 30 customers throughout the world. Today’s portfolio includes Airbus aircraft of the type A300-600 and A310. Together with its Russian partner companies UAC and Irkut, EADS EFW currently develops a conversion solution for the Airbussingle-aisle family A320/A321.