Israel Aircraft Industries (IAI) plans to deepen its co-operation with Varig Engineering & Maintenance (VEM) in a development that will more than double the Brazilian firm's cargo conversion business. VEM delivered its first Boeing 767-200ER passenger-to-freighter (PTF) conversion to Colombia's Tampa Cargo last week, as a subcontractor to IAI in a four-aircraft deal.
IAI deputy director of widebody aircraft conversion and special programmes Ram Maravi says the Tel Aviv-based company will provide VEM with additional work including 737 PTF conversions once it expands its plant in the southern Brazilian city of Porto Alegre. "We toured the world to find a site for this conversion work; we needed skilled workers, technical support, machinery and strong management, and we found all those characteristics in VEM," he says.
The deal with IAI sees VEM perform "around 50%" of the $10 million conversions, conducted with simultaneous D-checks. VEM is finalising financing to build an extra hangar in Porto Alegre to house a second line, as well as starting work on IAI's certificated 737 PTF conversions. "We plan to move up to seven 767s and five 737s a year if we succeed in our expansion," says VEM chief executive Evandro Braga de Oliveira.
GE Capital Aviation Services has signed a 15-aircraft deal with IAI for 767 PTF conversions, with the first by VEM being the final one from an initial order for four from Tampa, with Copenhagen-based Star Air – which operates contracts for United Parcel Service – taking 11, says GECAS senior vice-president Michael Dolsingh.
Maravi says IAI plans to "develop other products here and work in co-operation with VEM". IAI also has a 737 PTF conversion line at South African manufacturer Denel's Bonaero Park facilities outside Johannesburg, and contracts component and kit work to China's Gameco. "We think the most cost-effective site has at least two lines and we think that if VEM increases to two, they could be a good site for 737 work," says Maravi.
JUSTIN WASTNAGE/PORTO ALEGRE
Source: Flight International
