ARIE EGOZI / TEL AVIV & GUY NORRIS / LOS ANGELES
Near exhaustion of market segment forces IAI division to look to 747-400 for new passenger-to-freighter conversions
Israel Aircraft Industries' (IAI) Bedek division and Boeing are discussing possible co-operation on passenger-to-freighter conversions for the 747-400.
Bedek is established as a world centre for the conversion of 747-200s, but this market segment is almost exhausted, a situation exacerbated by the 11 September US terrorist attacks. "Our forecast is that we will convert another three to five 747-200s, one possibly this year. Our next market is the 747-400 and Boeing is a potential partner. We are discussing it," says David Arzi, general manager of the Bedek division.
Bedek believes between 100 and 150 747-400s are candidates for conversion. Arzi predicts that the cargo market will grow 6% annually from 2004.
Boeing says talks have been held with Bedek over potential collaboration on the proposed 747-400SF special freighter-conversion programme, but adds that it is talking with several other conversion companies. "We have been talking to partners about potential involvement and work packages," says Mike Stewart, vice-president freighter conversions. Boeing has yet to make an internal decision on the launch of such a programme, however, which would affect sales of new-build 747-400Fs.
No firm launch date has been set for the programme, but the overall plan calls for first delivery of a completed and certificated -400SF in "mid to late 2005", Stewart says.
No detailed design work will be done until the market can support a launch, says Stewart. Boeing believes post-2005 demand will be "thin" for the first few years.
Meanwhile, Bedek expects to return to its full aircraft conversion capacity of 16 aircraft a year in 2004, which would be in line with the recovery from the current slump in the business. This year, Bedek will convert only 12 aircraft. GE Capital Aviation Services (GECAS) has placed an order for four Boeing 767-200s to be converted by 2004. The first aircraft, which will be used to get a supplemental-type certificate from the US Federal Aviation Administration, will be flown to Bedek next March. GECAS has options to convert another 11 767-200s.
Bedek has also been contracted to convert 20 737-300/400s owned by GECAS and two unidentified airlines.
Source: Flight International
