Pemco takes over Boeing 737-400 combi work from Taiwanese modification centre
Taiwan’s Inter-Continental Aircraft Services (ICAS) is looking for a new launch customer for its Boeing 737-300/400 cargo conversion programme after the termination of a five-aircraft contract with Alaska Airlines.
Alaska last week awarded a replacement contract to Pemco Aviation Group, which will now convert into combis the five Alaska 737-400 passenger aircraft ICAS was selected to convert a year ago. Alaska confirms that “we did make the decision to go with Pemco and to replace the ICAS contract”, but declines to comment further.
ICAS says there was “some dispute”, but also declines to say more. However, ICAS acknowledged this year that the deal was in jeopardy because it was having trouble negotiating a contract with Canada’s Cascade Aerospace, which Alaska insisted should be the conversion centre after Taiwanese maintenance company Air Asia failed an Alaska Airlines audit (Flight International, 11-18 January).
Air Asia is part of the ICAS consortium, along with China Airlines (CAL), EVA Air maintenance arm Evergreen Aviation Technologies, and Taiwanese aerospace manufacturer Aerospace Industrial Development Corporation (AIDC).
ICAS says the four companies and Taiwan’s ministry of economic affairs have agreed to pump in more funds to keep the consortium going for at least several more months.
“Given the Alaska case, it’s hard to say when we’ll get another launch customer,” says ICAS. “But we are trying to recover from the incident in a matter of months.” Pemco plans to deliver the 737-400 combis in 2006 and 2007, replacing Alaska’s fleet of seven 737-200Cs. The aircraft will be configured with space for up to four pallets and seating for 70 passengers. “The -200Cs have an average capacity for three pallets so, per aircraft, we should increase cargo capacity by 15-20%,” says the airline.
The order launches the -400 conversion effort for Pemco Aviation’s World Air Services subsidiary, and means the combined 737-300/400 conversion rate at its Dothan, Alabama site will climb to 10-15 a year for 2006-7.
ICAS began engineering work on its conversion after it was selected by Alaska, but work has now slowed until it can find an alternative launch customer. B/E Aerospace subsidiary Flight Structures is helping ICAS with its application for a US Federal Aviation Administration supplemental type certificate. Boeing is also a partner on the ICAS team.
Guy Norris / Los Angeles & Brendan Sobie / Singapore
Source: Flight International
