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Passenger-to-freighter conversions gain traction amid economic viability

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Passenger-to-freighter conversions gain traction amid economic viability
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In the air freight industry, cargo airlines aim to maximize profits by efficiently transporting goods across the globe. Traditionally, these airlines have relied on purpose-built freighters from manufacturers like Boeing and Airbus. However, a growing trend has emerged in recent decades: converting passenger aircraft into freighters.

Purpose-built freighters are designed specifically for cargo transport, with reinforced fuselages and large loading areas. The world's largest cargo airlines, such as UPS Airlines and FedEx Express, primarily use dedicated cargo aircraft. Yet, converted passenger freighters have gained popularity due to their cost-effectiveness and availability.

The Bureau of Transportation Statistics notes that the sector of freighter conversions has evolved from a niche market to a significant industry involving thousands of professionals worldwide. This transformation did not happen overnight but reflects a shift in strategy among cargo airlines.

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"A deeper look at the definition of a freighter aircraft" reveals that purely designed freighters are rare today. Most are derivatives of commercial models due to lower development costs. Boeing and Airbus have been quick to introduce such models to the market.

The Cargo/Logistics Airlift Systems Study (CLASS) concluded that dedicated freighters could reduce trip costs by 20% and purchase prices by 15%. Despite these findings, manufacturers were hesitant to invest heavily in building dedicated cargo aircraft due to the lower capital costs associated with commercial derivatives.

From an aerospace manufacturer's perspective, developing a cargo plane alongside passenger aircraft involves marginal design modifications. These include installing new main deck cargo doors and reinforcing floor beams.

Eventually, companies like Israel Aerospace Industries (IAI) and Boeing began converting passenger jets into freighters. This process extends an aircraft's operational life by up to 20 years. Converted models include various Boeing jets like the 737 and 747, as well as Airbus A330s.

Converting an aircraft can vary significantly in cost depending on its type. In recent years, conversion costs for larger planes like the Airbus A330 or Boeing 777 have risen to $40 million. Lower-cost methods have also been developed, allowing conversions at approximately $6.5 million.

Converted freighter aircraft offer operators lower upfront costs compared to newly manufactured jets but come with drawbacks such as inefficient loading processes due to retained passenger features.

Despite these drawbacks, converted freighters present numerous benefits for different types of cargo operators. They offer significantly cheaper alternatives than buying new jets outright and provide flexibility in scaling capacity quickly without waiting for new models from manufacturers.

Additionally, retired passenger aircraft supply has increased due to rising numbers being phased out, making conversions more economically viable amid growing e-commerce demands.

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