ARIE EGOZI / TEL AVIV
The Bedek division of Israel Aircraft Industries (IAI) is in talks with three Chinese aerospace facilities as it pursues plans to establish a local base for the conversion of passenger aircraft into freight configuration.
"We are looking for a Chinese partner for our planned conversion business in China," says Bedek general manager David Arzi.
IAI forecasts that demand for cargo capacity in China will grow 16% in 2003, and then 12% a year until 2007, he adds.
Arzi says negotiations are under way with Lufthansa Technik/Air China joint venture Ameco, Lockheed Martin/China Southern Airlines Guangzhou Aircraft Maintenance Engineering, and Shenyang Aircraft (SAC).
SAC already supplies conversion kits to the Bedek division, manufacturing the cargo floor for the conversion of the Boeing 747-200 and the full conversion kit for the 767, which includes the cargo floor and the fuselage plug with the side cargo door.
The main conversion market in China will focus on 737s and 767s, says Arzi, who adds that Bedek "will also evaluate the need for the 747-400".
Arzi expects the new business potential in China may increase the division's sales from $430 million in 2002 to about $530 million in 2005.
Source: Flight International
