Boeing studies plan to offer 737 freighter conversions

Reuters: Boeing is studying further expansion into the cargo market by offering conversions of its most popular passenger jet, the 737-800, into freight haulers in a move aimed at express parcel firms, its top marketing executive told Reuters.

The proposal emerged weeks after rival Airbus relaunched its own plans to offer conversions of its competing A320 jet, forging a partnership with Singapore’s ST Aerospace after an earlier Russian-backed effort stalled on costs and aircraft prices.

Boeing sells three types of freighter from the mid-sized 767 up to the larger 777 and the 747-8 jumbo. It also offers passenger-to-freight conversions of its mid-sized 767.

“The next step we are looking at is what we want to do in the single-aisle market, where we see demand for over 1,000 conversions over the next 20 years,” Randy Tinseth, vice president of marketing at Boeing Commercial Airplanes, said in an interview. “We are looking at potentially pursuing a freighter conversion programme for the 737-800. We see potential especially in the express market in the U.S. and China.”

Until now, only outside companies have carried out freighter conversions on 737s, as well as some 757s. Israel Aerospace Industries recently launched such work on recent 737s.

Plans for Boeing’s in-house 737-800BCF (Boeing Converted Freighter) were contained in a slide presented during a ceremony to mark a freighter delivery to Cargolux

Boeing is also studying plans to convert its larger 777-200ER into freighters, but these are said to be progressing more slowly. Airbus meanwhile offers A330 conversions. In total, Boeing sees demand for 1,420 converted freighters and 920 new ones in the next 20 years.

Efforts by Boeing and Airbus to tap into small freighter demand comes as their medium-haul jets head for major upgrades and current models reach the age and valuation that could make freight conversions attractive.

To work, the current planes must be available cheaply enough on the second-hand market, with about 15-20 years on the clock, to cover the cost of converting them and also make a profit.

“You have to balance that out to see how it works,” Tinseth said.

Asked when Boeing would decide whether to launch the project, Tinseth said this would depend on market conditions.

Cargo Facts magazine meanwhile reported that Boeing’s board had given authority to offer the new 737-800 conversion scheme and that Hangzhou YTO Express Airlines was set to provide an order for work on 15 aircraft.