China's SF Express has taken delivery of its first aircraft, a Boeing 757-200PCF converted by Precision Conversions, which will be operated by SF's newly established airline subsidiary.
Precision Conversions vice president marketing and sales Brian McCarthy says SF, which in July contracted Precision to convert one 757, took delivery of the completed aircraft last week. He says the aircraft is now in China getting painted and it is "the first of a dozen" 757s SF plans to add to its fleet over the next few years.
SF Express is one China's largest cargo and logistics companies with about 65,000 employees. But while SF has had a gigantic fleet of trucks until now, it has relied on wet-leased capacity from other Chinese cargo carriers to support its express network.
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Privately-owned SF first indicated in 2007 it intended to launch its own cargo airline and began acquiring 757 passenger aircraft for the project. The new Shenzhen-based carrier, which has been referred to as SF Airlines and Shunfeng Aviation, is expected to launch operations later this month with an initial investment from SF Express and Chinese investment firm Shenzhen Taihai. The airline secured initial approval from the CAAC last December.
The 757 that Precision converted for SF was formerly owned by AWAS, according to Flightglobal's ACAS database. The aircraft was built in 1987, carries serial number 24401 and was previously operated by China Southern Airlines.
McCarthy says the re-delivery to SF marks the first re-delivery for Precision since January. In recent years Precision has been converting seven to eight 757s annually but this year it will likely only re-deliver three aircraft. The market "just froze with the recession and the tremendous fall off of in cargo," McCarthy explains.
McCarthy says Precision's third aircraft for 2009 has already been completed and is now waiting for an engine from Rolls-Royce prior to re-delivery to Aviation Capital Group (ACG). In August Precision announced a deal with ACG to convert up to three 757s.
McCarthy says ACG still plans to convert two more 757s at Precision but is waiting to place the first aircraft before committing to additional conversions. He says ACG has two potential customers for the first aircraft, which will be re-delivered shortly.
McCarthy says overall the 757 conversion market is picking up and Precision is now pursuing two new contracts covering aircraft to be converted later this year. There are also several opportunities Precision is now pursuing for early 2010 which McCarthy says "could represent the beginnings of a much better year for Precision".
Oregon-based Precision historically has had two conversion lines at Jacksonville, Florida-based heavy maintenance company Flightstar Aircraft Services. But most of this year the lines have been in start-and-stop mode due to the slow market.
McCarthy says with 80 to 90 757s now in the desert feedstock is no longer an issue. Earlier this decade limited availability of aircraft slowed the output at Precision and other 757 conversion providers.
The SF 757 is the 22nd conversion completed by Precision. The company was established in 2001 and received an FAA supplemental type certificate for its 15 pallet 757-200PCF passenger-to-freighter conversion product in 2005.
Source: Air Transport Intelligence news
