Making 737-400 conversion more competitive
Freighter-conversion house Aeronautical Engineers Inc. said July 19 that Aviation Capital Group, a large aircraft leasing company, has hired it to convert two Boeing 737-400 passenger aircraft to freighters with space for 10 full-size pallet positions and a single shorter pallet.
Modification work is underway on the first aircraft, which ACG has leased to Brazilian carrier VarigLog.
Interest in the new 737-400 freighter configuration has reportedly been strong since March when Aeronautical Engineers rolled out the new design. MNG Airlines, a Turkish all-cargo carrier, is the launch customer for the new design.
Previously such converted aircraft had volume for nine containers, plus a smaller unit. The non-standard size and shape of the last position meant that the space often went unused. Freight airlines have been pressing for a configuration that can accommodate 10 full containers to maximize their yields.
Aeronautics Engineers said the new configuration was made possible by repositioning the cargo door further aft on the fuselage.
The development is significant because it allows the 737-400 to evenly compete with the Airbus A320 conversion aircraft, which also has 10 container positions and is scheduled to be completed sometime in 2012. The A320 has a payload of 23 tons versus 21.5 for the 737-400 and a slightly longer range (1,825 nautical miles versus 1,725).
Expanding the cargo hold of the 737-400 harkens back to 2004 when Precision Conversions developed a 15-pallet position conversion for the Boeing 757, up from the standard 14.5 positions available at the time.
Miami-based Aeronautical Engineers has had four other conversion orders so far this year, an indication that airlines are looking to add capacity as demand increases for air cargo transport.
787 in flight-testing mode
The 787 Dreamliner made its international debut at the Farnsborough International Air Show in England as Boeing continues to conduct flight tests on the new long-range aircraft.
The first delivery is still scheduled for late this year, but Boeing acknowledged the timetable could be pushed back a few more weeks. Boeing has experienced more than a half-dozen delays to the original delivery schedule because of problems with outside suppliers and technical glitches. The delays have cost it some canceled
orders from customers who have switched to Airbus products.
Boeing also said it will produce interior parts for the 787 at a plant to be constructed in North Charleston, S.C., 10 miles from Boeing's new final assembly site in the state. The new production facilities further diversify Boeing's assembly work from its primary base in Washington, and put pressure on the unionized work force to moderate demands.
Boeing forecasts expansion through '29
Aircraft manufacturer Boeing is projecting the world's freighter fleet will increase from 1,750 to 2,980 aircraft over the next 20 years. There will be 2,490 total deliveries to meet growing demand and replacement of aging aircraft, with 1,750 of those being conversions from passenger to freighter planes.
The industry will require 1,080 standard freighters, only 10 of which will be new builds, and 640 medium widebody freighters (220 new builds). Of the 770 large freighter (80 tons or more capacity) deliveries, 520 will come from new production. The economic advantages of purpose-built planes increase with the size of the aircraft.
Boeing forecasts world air cargo traffic will increase at an annual average of 5.9 percent through 2029.
'The inclusion of the high-traffic growth levels in 2010, following the recession, is driving our cargo forecast upward,' said Randy Tinseth, vice president of marketing for Boeing Commercial Airplanes. 'However, the strength of the industry and its growth will continue to be driven by sound fundamentals, speed and reliability, consumer product innovation and global industrial interdependence.'
Air Cargo Management Group, a Seattle consulting firm, estimates the global freighter fleet will grow to 3,111 units in 2020, with 2,700 of those from conversions or new production based on a mid-growth scenario. It pegs the current freighter fleet at 1,560 planes.
Budapest Airport to expand cargo facilities
Hungarian authorities have approved a plan to develop 120,000 square meters (1.3 million square feet) of new air cargo facilities at Budapest Airport, according to Cargo Facts.
Fewer than 10 all-cargo operators use the airport, but the airport officials want to expand to take advantage of growing demand for inbound and outbound air freight service in Eastern Europe to attract more business, said the monthly newsletter published by Air Cargo Management Group.
The first stage will be a new facility for Hungarian Post, followed by development of a cargo city, which will include dedicated cargo terminals and warehouses for forwarders and other logistics companies.
Silly Bandz stretches logistics calculus
The Silly Bandz craze has swept the nation, as you've probably noticed if you have kids. Silly Bandz are rubber-band bracelets that hold shapes such as dogs, stars, the sun and letters. They are so popular that stores can't keep them in stock.
That popularity is forcing creator and distributor BCP Imports of Toledo, Ohio, to use air freight to deliver the hot-selling product from factories in China to U.S. customers like Toys R Us. It's an interesting development because normally it doesn't pay to move low-priced merchandise by air. Ocean transport is usually the preferred mode for a product that sells for about $5 a pack.
BCP spends about five times more for air freight than using a container line, but shaves about 3.5 weeks off the normal four-week transit time, according to a feature on the company in USA Today. The company is shipping hundreds of cases per day by air. It uses UPS for final delivery from its warehouse to retailers.
But BCP owner Robert Croak isn't complaining about the need to air freight his Silly Bandz. Annual sales have leaped from $10,000 two years ago to more than $100 million per year.