ANDREW DOYLE / SINGAPORE
Leasing company seeks to expand cargo aircraft portfolio as Boeing plans relaunch of Special Freighter programme
GE Capital Aviation Services (GECAS) plans to enter the Boeing 757-200 freighter leasing market and has received bids for conversion work from six potential vendors.
Meanwhile, Boeing is to restructure and relaunch its 757-200 Special Freighter (SF) programme in mid-2003 under the new business model it is adopting for its passenger-to-freighter (PTF) activities.
Faced with a depressed airline market, GECAS is seeking to boost revenue by rapidly expanding its cargo aircraft portfolio with a series of PTF deals. "Freighter financing is complementary to our core business of passenger aircraft financing," says GECAS senior vice-president technical operations James Lindberg. "Our current portfolio contains excellent candidates for conversion."
The US lessor is looking at modifying a batch of twinjets including 757-200s being returned by US Airways. Known conversion providers include Boeing and new entrants Structural Integrity Engineering and Precision Conversions. Lindberg will not reveal the other three potential bidders.
Boeing will relaunch its 757SF programme in mid-2003 at the conclusion of the current contract to convert 34 ex-British Airways aircraft for DHL Airways, say Boeing sources. Under the existing arrangement, Boeing was forced to pick up the tab after problems arose during development and production. A total of 16 aircraft have been handed over to DHL.
Under the new business model, Boeing will charge a licensing fee for the supplemental type certificates it develops and will receive a royalty for each aircraft delivered. It will also handle sales and marketing and offer product support, but will not invest in setting up the line, manufacture parts or be responsible for touch labour. The restructured 757SF programme will start delivering aircraft in mid-2004.
Meanwhile, Boeing's long-awaited 747-400SF programme is due to be launched early next year, structured according to the new business model (Flight International, 8-14 October). First delivery will be in late 2005.
The manufacturer is talking with several potential investors and licensees and forecasts demand for four -400SFs in 2006 and six to 10 a year thereafter, which "could support two to three touch labour partners", say the sources.
Meanwhile, Boeing is preparing to offer special freighter versions of the 767-200 and -300, 737-300, and possibly the MD-80. Under the old structure, Boeing found it difficult to price conversions competitively.
Source: Flight International
