Pemco Aviation Group has defeated Boeing in the fight to be the second supplier to GE Capital Aviation Services (GECAS) of 737-300 passenger to freighter (PTF) and quick-change conversions.
The six-aircraft deal, plus four options, is the latest blow to Boeing's stalled attempt to launch its 737-300 conversion business. GECAS last year selected Israel Aircraft Industries over Boeing to convert 15 737-300/400s, prompting the US manufacturer to restructure its programme in a bid to lower costs and better compete with outside vendors.
GECAS says surging demand for 737-300 freighters forced the lessor to contract with whichever supplier could convert aircraft the quickest. Alabama-based Pemco already has a 737 cargo conversion line and had slots available for early this year.
IAI is working on its initial 737-300 PTF conversion and cannot accelerate the programme at such an early stage. Boeing, partnered with Goodrich and Inter-Continental Aircraft Services, will need months to convert its initial aircraft once it has a launch customer.
Pemco plans to redeliver its first GECAS 737-300 in three months, beating the first IAI redelivery by a couple of months. GECAS says it already has customers lined up for the 21 737s it is committed to converting at IAI and Pemco. The rapid expansion of GECAS's 737 freighter portfolio provides the first hard evidence that plummeting aircraft values will lead to a burgeoning 737-300/400 conversion business, potentially at several vendors.
Pemco, meanwhile, has revised its supplemental type certificate (STC) for 737-300 cargo conversions to meet regulatory concerns and better compete with new providers. Pemco has so far converted two aircraft for Iceland's Bluebird under the new STC, which includes several structural enhancements.
Pemco originally developed its 737-300 PTF programme in 1991 as a conversion for new-build aircraft. It says it may extend the line to include 737-400s and is also exploring 757 conversions.
Source: Flight International
