All types of aircraft (wide-, narrow-body and regional) are used for carrying various cargo worldwide. Converted Boeing 747s and Boeing 777s as well as Boeing 747-F are primarily operated between major logistical hubs as well as on intercontinental routes. The narrow body segment is dominated by the converted Boeing 737-300/400. This type of aircraft is often used on shorter routes, mostly for delivering cargo to major international hubs.

 

“Boeing 737 is highly popular within freight aviation. The conversion gives a second life to 20-25 years’ old aircraft, once they exhaust the potential for passenger transportation. Today approx. 20% of phased out B737s may be potentially converted to freight. The cost of such conversion programmes varies, but sometimes reaches USD 4 million. But the age of aircraft comes as a major obstacle for the development of the passenger-to-freight market, as many countries maintain low age limits. For instance, Russia, China or Indonesia limits the import of aircraft older than 15 years,’ commented Tadas Goberis, the CEO of AviaAM Leasing.

 

One of the factors which would justify regional freighter aircraft operation is their usefulness in collecting cargo and mail from smaller and more remote locations and transporting them to larger airports. From there narrow-body cargo jets can be used to transport the goods to major international hubs. Furthermore, regional cargo aviation is a viable option in areas with low or no ground connections, as well in time-sensitive cases (e.g. mail delivery). However, economic efficiency of regional cargo aviation is strongly dependent on the economic and demographic situation in a particular area.

 

„With regard to the recent plans to start a CRJ200 P2F conversion, the process itself is not especially difficult. However, the fact that until now only a few CRJ200s have been converted to freighters proves that many cargo operators have doubts with regard to the efficiency of the aircraft in cargo aviation. We believe that such projects are successful in very specific situations, for instance, when there is a need to transport medical goods or expensive equipment, or on other special occasions when the customer is willing to pay more for speed and flexibility,‘ comments T. Goberis.

 

Currently, a CRJ200 can be bought for around USD 4-5 million. The conversion and modification process will cost additional USD 0,6 and USD 4-5 million respectively. Overall, the process may take up to several months of downtime before the aircraft can be reintroduced to the market.

 

‘It might not be the most suitable moment to start converting regional commercial jets to freighters. Airlines might not want to take any risks with such fresh products, as air freight volumes and their growth rates are still very unstable. Still, considering the active trade development in the emerging countries, such regions as Latin America, Asia Pacific or the CIS might eventually build up a moderate demand for regional cargo aircraft which would integrate remote locations  into regional economy,’ concluded the CEO of AviaAM Leasing.