Market Trends of Asia-Pacific Freighter Aircraft Industry
Derivative of Non-Cargo Aircraft Segment Will Showcase Significant Growth During the Forecast Period
- The growth of the derivative of the non-cargo aircraft segment can be attributed to airlines' increasing preference to modify their old and aging passenger aircraft with freighter aircraft. The increase in passenger-to-freighter conversions will act as a solution for the air cargo capacity constraints due to the significant demand driven by the e-commerce business. These converted passenger planes will carry lighter, more voluminous cargo like e-commerce packages. During such conversions, aircraft are reinforced with floors that can handle the weight of the freight.
- The demand for passenger-to-freighter (P2F) conversions comes mainly from China. The Chinese domestic aviation market drives the requirement for narrowbody aircraft. Meanwhile, annual passenger-to-freighter (P2F) conversions reached historic highs, with the volume estimated to peak at 180 per year by 2025 and then settle at around 160 aircraft per year. Growing investments from OEMs and rising expenditures on aircraft modernization programs drive the market growth.
- For instance, in March 2023, Boeing partnered with GMR Aero Technic to establish a new Boeing Converted Freighter (BCF) line in Hyderabad, India. GMR Aero Technic will be able to support future conversions of domestic and foreign aircraft. The company announced that the facility in India will convert B737 passenger planes into dedicated freighters to tap regional and global demand. Such developments will boost market growth in the coming years.
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China is Anticipated to Show Highest Growth During the Forecast Period
- China held the highest shares in the market and is projected to continue its domination during the forecast period. The growth is due to rising spending on improving aviation infrastructure and growing demand for air cargo transport. China is spearheading the region’s air travel boom. Increasing passenger traffic and expected revival in international traffic have prompted aircraft companies to procure aircraft in their fleet to meet the anticipated growing demand in coming years.
- China Eastern Airlines has an aircraft fleet with about 617 aircraft in service with over 189 aircraft on order. In June 2023, Embraer announced establishing a passenger-to-freighter conversion line in China for its E1-jets, having signed a Letter of Agreement with Lanzhou Aviation Industry Development. The Chinese company wants to convert twenty E190s or E195s into full freighters. Also, in May 2023, Chengdu-based Sichuan Airlines took the delivery of its first Airbus A330-300 passenger-to-freighter (P2F) conversion to expand its cargo fleet to four aircraft.
- Furthermore, Elbe Flugzeugwerke GmbH (EFW) took a significant step forward with its freighter conversion work in Asia in August 2023. The EFW is a joint venture by ST Engineering and Airbus. EFW announced that the first aircraft has arrived for conversion as part of its collaboration on Airbus A321 passenger-to-freighter (P2F) conversions with Chinese MRO solutions provider Sichuan Haite Hi-Tech (Haite). Thus, the growing air cargo fleet and rising aircraft conversion contracts from airlines drive the market growth across the country.
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