Canada's Cascade Aerospace is negotiating a contract with Taiwan's Inter-Continental Aircraft Services (ICAS) to convert five Alaska Airlines Boeing 737-400s into and combis and freighters.
Industry sources say Alaska has selected Cascade over maintenance shops at Taiwan's China Airlines and Air Asia (unlrelated to the Malaysian low-cost carrier), forcing ICAS to forge a partnership with Cascade. ICAS's original contract with Alaska, forged in mid-2004, called for Air Asia to serve as the conversion centre. After Air Asia failed an Alaska audit, ICAS proposed using CAL to convert the aircraft, but the customer has insisted the work instead be handed to Cascade in British Columbia. Air Asia still hopes to add a 737 conversion line, starting with ICAS's second customer.
Meanwhile, Pemco Aviation Group is setting up a joint venture with the Shandong division of Taikoo (Xiamen) Aircraft Engineering (TAECO) - STAECO - making it Pemco's second Asian 737 conversion centre after Malaysia Airlines. The move could help Pemco win orders from mainland China. New Chinese carrier Jetwin Air Cargo plans to operate 737-300Fs modified under the Pemco conversion.
BRENDAN SOBIE / SINGAPORE
Source: Flight International
