EMMA KELLY / LONDON
Partnership gives more responsibility to partners Goodrich and ICAS to reduce costs and attract a launch customer
Boeing, Goodrich Aviation Technical Services and Taiwanese consortium Inter-Continental Aircraft Services (ICAS) plan to sign a new partnership agreement this month on the stalled 737 Classic passenger-to-freighter conversion programme. The new agreement will see more responsibility transferred to Goodrich and ICAS in a bid to reduce costs in the programme, which has so far failed to secure a launch customer.
The original agreement, signed in December 2000, called for Boeing to provide design data, engineering expertise and hold the supplemental type certificate (STC), while conversions would be performed by Goodrich and ICAS - comprising Aerospace Industrial Development Corporation (AIDC), Air Asia, China Airlines and Evergreen Aviation Technologies. Potential customers have been put off by the high price tag - $3.5 million - prompting the partners to restructure the agreement to cut the conversion cost.
"The contractual arrangements are in the final stages of development with signing this month," Bill Ashworth, Goodrich vice-president product development, said at the Cargo Facts 2002 conference in Miami, earlier this month. The agreement will result in a "significantly lower" sticker price for the conversion, which will be only slightly more expensive than those offered by non-original equipment manufacturer (OEM) competitors, which include Israel Aircraft Industries (IAI) and Pemco.
The new agreement is part of Boeing's strategy in conversions to "retain OEM value but put in place a cost structure that benefits from non-OEMs", says Mike Stewart, Boeing vice-president freighter conversions. "The end product should be a more cost-effective solution that is a blend of responsibilities between Boeing and its partners," he says.
Under the agreement Goodrich and ICAS will share the design effort and conduct the conversions at their facilities in Seattle and Taiwan, respectively, while Boeing will provide technical data, analysis and technical expertise, says Ashworth. Product support will be provided by Goodrich, backed by Boeing and ICAS. Goodrich and ICAS will have prime responsibility for procuring parts, although Boeing may supply some critical components, such as the cargo door, which would be the same as that used on new-build 737-700 cargo aircraft, says Ashworth. Goodrich will lead the certification effort and obtain the STC from the US Federal Aviation Administration, using Boeing FAA- approved type design data.
Ashworth says the partners are in discussion with several potential launch customers, with one expected to be secured within the next few months. Once a launch customer is signed up, the first conversion through to certification and delivery would take 14-18 months, says Ashworth.
The 737-300 freighter can carry eight cargo pallets and have a 18,800kg (41,400lb) payload, while the larger -400's capacity is nine pallets and a 19,000-20,900kg payload, depending on weights. The partners are also offering a quick-change configuration - with 135 seats - and a combi, carrying three cargo pallets and 70 passengers.
Source: Flight International
