Jetrader - Summer 2017 - 50

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AeroLys ..................................................................................................... www.aerolys.aero ....................................................................................48
Aeronautical Engineers Inc. ........................................................ www.aeronautical-engineers.com ........................................................................24
Airbus S.A.S............................................................................................... www.airbus.com .......................................................... Outside Back Cover
Aviation Partners Boeing ............................................................. www.aviationpartnersboeing.com .................................................................... 6, 13
CAVU Aerospace, Inc...........................................................................www.cavuaerospace.com ..............................................................................38
Certified Aviation Services (CAS)......................................................www.certifiedaviation.com..............................................................................38
CFM International, Inc. ......................................................................www.cfmaeroengines.com................................................................................4
DAE Industries ........................................................................................... www.daeind.com .....................................................................................35
EFW .............................................................................................................. www.efw.aero .......................................................................................25
EmbraerAircraft ................................................................................... www.e2fleetsmart.com ........................................................ Inside Back Cover
Jetaire Flight Systems, LLC..................................................................www.jetairegroup.com .................................................................................48
Lufthansa Tecknik AG .......................................................................www.lufthansa-technik.com ............................................................................ 11
Magellan Aviation Group .....................................................................www.magellangroup.net ...............................................................................48
MTU Maintenance Hannover Gmbh..............................................................www.mtu.de ........................................................................................ 17
Novus Aviation Capital .............................................................................. www.novus.aero .....................................................................................21
Pratt & Whitney ......................................................................................... www.pw.utc.com .............................................................Inside Front Cover
Precision Aircraft Solutions ............................................................. www.precisionaircraft.com .............................................................................20
Spire Flight Solutions.......................................................................... www.WorldFuelColt.com .................................................................................9
Wilmington Trust, N.A. ....................................................................... www.wilmingtontrust.com ................................................................................3
Continued from page 21

A 777 conversion program has been discussed and evaluated for several years.
Boeing has indicated in various forums that
the conversion cost would be much higher
than comparable aircraft and would produce
a freighter less capable than the production aircraft. Israel Aerospace Industries
(IAI) has indicated that they are studying
the feasibility of offering a conversion. If
a program is launched, it must compete
effectively against the 747 converted
freighter - a tall order considering the
engineering challenges, feedstock pricing
and higher conversion cost.

747
As previously discussed, the 747 freighter
was hit hard by the global recession with

more than 70 aircraft sitting idle in the desert at one point. Through a combination of
retirements and renewed demand, the stored
aircraft fleet has been reduced to 40-or-so
units with most destined for retirement. Not
surprisingly, lease rates have been depressed
with some lessors agreeing to power-bythe-hour arrangements to keep the aircraft
flying. With the "right sizing" of the fleet
during the recession (35 percent reduction),
a more normal rate of attrition for the 220
remaining aircraft can be expected. As a
result, the 747-400 freighter fleet with an
average age of 17 years should continue to
operate well into the 2020s, barring an oil
shock or black swan event.
The 747-8F, most likely the last variant
of a type first delivered in the 1960s, has

50 The official publication of the International Society of Transport Aircraft Trading

achieved a turnaround from a near-death
condition. At the beginning of 2016, the
backlog for the -8F was seven units, which
was insufficient to continue the production line until the anticipated order to
replace Air Force One in the early 2020s.
However, with new orders from UPS and
Air Bridge Cargo, the backlog now stands
at 20 units with 49 options stretching to
2022. Additional large orders prior to 2020
are unlikely, but after that point, demand
should increase as 747-400s begin retiring in greater numbers. It is important to
consider that the 747 production freighter
is the only Western-built aircraft with nose
loading and outsize cargo capability and
therefore likely to remain in operation until
2050 and beyond.

http://www.aerolys.aero http://www.aeronautical-engineers.com http://www.airbus.com http://www.aviationpartnersboeing.com http://www.cavuaerospace.com http://www.certifiedaviation.com http://www.cfmaeroengines.com http://www.daeind.com http://www.efw.aero http://www.e2fleetsmart.com http://www.jetairegroup.com http://www.lufthansa-technik.com http://www.magellangroup.net http://www.mtu.de http://www.novus.aero http://www.pw.utc.com http://www.precisionaircraft.com http://www.WorldFuelColt.com http://www.wilmingtontrust.com

Jetrader - Summer 2017

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