ISTAT Jetrader - Summer 2022 - 36

APPRAISAL
Boeing 737-800BCF
Mark D. Halsor
ISTAT Certified Senior Appraiser
President
Aircraft Information Services Inc. (AISI) and
Aviation Asset Management Inc. (AAMI)
Photo courtesy of Ben Lo.
B
oeing launched the
737-800 Boeing
Converted Freighter
(BCF) program
in early 2016,
expecting that the
decline of available
737-300, 737-400 and 757-200
conversion candidate feedstock would
drive the industry toward the more
available (and more expensive) 737-800
passenger aircraft.
In April 2018, launch customer
GE Capital Aviation Services (GECAS)
received the first 737-800BCF from
Boeing Shanghai Aviation Services. By
year-end 2019, Boeing had received
120 orders for the 737-800BCF aircraft,
but feedstock availability at prices
that would allow financially viable
conversions restrained the program.
All of this changed in early 2020
as passenger travel nearly came to
a complete halt with the onset of the
pandemic. For the first time, substantial
numbers of 737-800 passenger
aircraft became potential freighter
conversion candidates due to a
combination of availability and declining
values. With short-haul passenger
demand recovering as the effects of
the pandemic have decreased, 737800
feedstock availability remains
significant, although down from its
peak. The decline in availability has
been somewhat moderated by the
return to service of the 737 MAX.
36 * THE OF F I C I AL PUBL I CAT I ON OF ISTAT
Boeing 737-800BCF Conversions
737-800BCF Conversion
Company
STAECO
Boeing Shanghai
Aviation Services
Boeing Gatwick MRO
COOPESA
GAMECO
KF Aerospace
Conversion Lines by
End Of 2023
7
2
1
2
3
2
Location
Jinan, China
Shanghai, China
London, UK
Rio Segundo, Costa Rica
Guangzhou, China
Kelowna, Canada
mhalsor@aisi.aero
aisi.aero
As the world reopens, e-commerce demand remains
robust and is expected to remain so, resulting in
continued growing demand for freighter aircraft.
On the demand side, pandemicdriven
e-commerce quickly increased
to levels previously expected to take
years to achieve. As a result, demand
for all freighters exploded, with demand
for narrowbody freighters going from
steady to nearly overwhelming. As the
world reopens, e-commerce demand
remains robust and is expected to
remain so, resulting in continued
growing demand for freighter aircraft.
Boeing initially started 737-800BCF
production at their Boeing Shanghai
Aviation Services joint venture facility,
followed by STAECO and GAMECO,
all in China. In response to surging
demand, Boeing went from five
production lines at year-end 2019 to
11 at year-end 2021 with announced
plans to increase to 17 by year-end
2023 located in Asia, Europe, North
America and in Latin America. As of
1 April 2022, the 737-800BCF fleet
consisted of 83 in-service aircraft, with
an order backlog of over 200 aircraft
from 19 customers. With each line
expected to convert at least four 737800
aircraft annually, deliveries are
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