Buoyant demand spawns new wave of widebody freighters.
Graham Warwick/ATLANTA
SO FAR, THE WIDEBODY freighter-conversion market has been dominated by the Boeing 747. Now, a new wave of widebody freighters is being rolled out of modification centres to meet the buoyant demand for cargo aircraft. Leading the rush are the older twinjets and tri-jets - McDonnell Douglas (MDC) DC-10s, Lockheed L-1011s and Airbus A300B4s - now attractively priced for cargo operators. Following surprisingly close behind are newer widebody types, such as the Airbus A310, Boeing 767 and MDC MD-11.
The newer aircraft are entering service with the so-called "integrated" cargo carriers - FedEx, UPS Airlines and Airborne Express - which offer door-to-door service and which want higher-capacity aircraft to carry high-yield express packages domestically and internationally. The older types are attracting the traditional low-yield, airport-to-airport, cargo carrier, interested in aircraft to replace the Boeing 707 and MDC DC-8.
FedEx has set the pace, buying new A300-600F and MD-11F freighters, and converting A310-200s, DC-10-10/30s and MD-11s from passenger to cargo operation. UPS is buying new 767-300ER freighters, while low-cost Airborne is converting 767-200s from passenger to cargo configuration - its first widebodies.
The rapid growth of all-747 cargo carriers Atlas Air and Polar Air Cargo has eclipsed the entry into this traditionally Boeing-dominated market of other aircraft types. The first Lockheed L-1011 freighters have entered service with American International Airways and Arrow Air in recent months; Gemini Air Cargo has emerged as an all-DC-10 operator; and A300B4 conversions are under way.
What would appear to be a boon for freighter-conversion specialists is tempered by uncertainties over demand and supply surrounding some types, and by concerns raised by US Federal Aviation Administration action on the GATX/Airlog 747 freighter conversion. The FAA's airworthiness directive (AD) requiring modification of the cargo-door installation has raised fears that it is tightening up its standards on modifications not developed by the original-equipment manufacturer.
The 747 market is dominated by Boeing's Wichita modification centre, which has performed almost 70 747-100/200 freighter conversions. The company has completed the de- sign work to convert 747-300 Combi and passenger versions to freighters and has begun looking at conversion of the 747-400 (Flight International, 17-23 April, P10).
GATX/Airlog has converted 23 747-100/ 200s to freighters, says president Rick Hatton. The AD affects ten passenger aircraft modified with a side cargo-door, but not 13 Combis which have been converted to full freighters, and imposes weight restrictions which have effectively grounded the aircraft.
OPERATOR CONFIDENCE
GATX/Airlog is keen to restore operator confidence because Polar, its biggest customer, with nine modifications, intends to increase its 747-freighter fleet. Polar operates 12 747-100s and plans to add two -200s in 1996. The carrier, which operates scheduled cargo services between the USA, Asia/Pacific, Europe and South America, has previously talked of growing its 747 fleet to 22-24 aircraft.
Atlas, poised to become the world's largest 747-freighter operator, has been a major customer of Boeing Wichita. Unlike Polar, Atlas flies only on behalf of major airlines, under long-term aircraft, crew, maintenance and insurance (ACMI) wet-lease contracts. The carrier operates 13 747-200s and one 747-100, and will add five more -200s by the end of 1996. Atlas plans to operate 24 747s by the end of 1997.
Most of Atlas' aircraft have been modified by Boeing, although Hong Kong Aircraft Engineering has converted two 747-200 Combis to full freighters under a two-year, ten-aircraft, contract which was announced in November 1995. Five 747-200Fs, which were built as freighters and with nose cargo-doors have been leased from FedEx for two years.
MDC believes that the next boom in cargo conversions will involve its DC-10 series. The company identifies some 100 DC-10-10s and 130 longer-range DC-10-30s which are suitable for conversion to freighters. Already, Gemini has begun an Atlas-type ACMI operation, using only the DC-10-30, flying for major airlines. Three aircraft are in service, with Swissair and British Airways (both Atlas customers) and World Airways, while three more remain to be converted by Alenia subsidiary Aeronavali.
MDC sees the DC-10 as an ideal fit between the DC-8 and 747 freighters, with the -30 offering cargo carriers the ability to operate economically at higher frequencies than possible with the 747. This benefits shippers, which are increasingly seeking reliable, rather than simply rapid, delivery of cargo. The ability to make money on a daily DC-10 service carrying loads which would be uneconomic for a 747 is a major part of MDC's sales pitch.
Unlike Boeing, MDC does not yet face competition for conversions from independent companies. Aeronavali is the company's exclusive licensee for DC-10 modifications, while MDC performs MD-11 conversions at SabreTech (formerly DynairTech) in Phoenix, Arizona. Together, the companies have the capacity to convert 30 DC-10s and MD-11s a year, says general manager, maintenance and modification engineering, Brad Foreman.
Proponents of Airbus and Lockheed conversions are watching the MDC market with interest, as it could influence demand for their pro- ducts. The UK's Marshall Aerospace already has orders for its L-1011 freighter. Deutsche Airbus is converting A310-200s and has developed an A300B4 modification, subcontracting four conversions to South Africa's Simera. British Aerospace and Seattle-based Flight Structures are also developing an A300B4 freighter conversion, with TIMCO as the US partner.
TIMCO will market the BAe conversion in the Americas, says marketing director Brian McCarthy. The company has also been selected to develop a 767-200s freighter conversion for Airborne Express. This will not involve a cargo door, although McCarthy predicts that there will be demand for a 767 cargo-door conversion and that the Airborne programme will "...pave the way". He sees the 767 as the "logical replacement" for the DC-8.
Source: Flight International
