ISTAT Jetrader - Autumn 2024 - 16

The Widebody Freighters Panel.
A polling question posed to the audience reflected a consensus toward a higher
demand for conversion freighters, with 60% expecting a higher proportion of converted
freighters, emphasizing the industry's reliance on conversion programs.
Cargo; and Brian McCarthy, vice
president of marketing and sales at
Mammoth Freighters.
Discussions centered on the
evolving market demands, with a
notable shift toward volumetric capacity
influenced by e-commerce trends.
Otto emphasized the importance of
converting even younger aircraft for
sustainability and efficiency, advocating
for the adoption of newer technologies
in freighter conversions.
Boto shared insights into the
challenges of feedstock availability,
noting the competition for suitable
aircraft for conversion programs.
Sultan discussed the strategic
importance of maintaining a balanced
fleet of new production and converted
freighters to meet market demands.
McCarthy highlighted Mammoth
Freighters' proactive approach in
meeting the demand for converted
freighters, projecting the conversion
16 * THE OF F I C I AL PUBL I CAT I ON OF ISTAT
of approximately 40 aircraft per year
starting in 2026.
An engaging discussion ensued
regarding the ratio between new
production freighters and conversion
freighters over the next decade.
Panelists presented varying
perspectives, with Emirates Sky Cargo
estimating a 50/50 split, emphasizing
the need for freighter availability.
Mammoth Freighters highlighted the
crucial role of conversion programs
in bridging the gap until newer
technologies are commercially
available. Boto projected a ratio
of 25% new production freighters
to 75% conversion programs due
to the lack of available production
freighters in the medium widebody
segment. A polling question posed to
the audience reflected a consensus
toward a higher demand for conversion
freighters, with 60% expecting a higher
proportion of converted freighters,
emphasizing the industry's reliance on
conversion programs to meet evolving
market needs.
Appraiser Panel
The Appraiser Panel, moderated by
Camille Pousseur, marketing director at
Stratos, delved into aircraft valuations.
Experts including Alexandros
Vathylakis, principal valuations analyst
at Cirium; Derek Wong, Ph.D., head of
aviation debt funds at Investec Bank
PLC; and Mike Yeomans, director
of valuations and consulting at IBA,
discussed the criteria for assessing
value, including market demand, lease
rates and feedstock availability. The
panel highlighted the economic viability
of converted freighters, noting that
high feedstock prices may influence
conversion rates.
Yeomans shared insights into the
typical lifespan of converted aircraft,
ISTAT Jetrader - Autumn 2024

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