Boeing makes deal to convert 747s to freighters

[rotornut]

Boeing to ink 747 conversion deal in Taiwan-source
Tue Feb 15, 2005 05:47 AM ET

TAIPEI, Feb 15 (Reuters) - U.S. aircraft maker Boeing Co. will sign a deal on Friday to permit a maintenance unit of Taiwan's EVA Airways Corp. to convert 747-400 passenger jets into freighters, a source close to the deal said on Tuesday.
The deal would give EVA's Evergreen Aviation Technologies Corp. (EGAT) access to a market that is expected to grow as airlines increasingly withdraw ageing 747-400s from passenger service and sell them to cargo carriers for conversion.

Boeing and EGAT -- which is 80 percent owned by EVA Airways and 20 percent by General Electric Co. said they would sign a cooperation pact on Friday but declined to give any details.

"The deal is to convert 747-400 passenger aircraft into cargo freighters as Boeing requires them," said the source, who did not want to be identified.

Scott Strode, Boeing's vice president of manufacturing and quality for the company's new 787 programme, and EGAT Chairman David Wang will attend the signing ceremony at 0200 GMT on Friday in Taipei, said company executives.

Companies that convert planes into freighters rely on original manufacturers, such as Boeing, for technical support.

When Boeing designed the 747 in the 1960s the company intended that the aircraft be suitable for freight work. (US$1=T$31.6)

[anguspm]

How many places are now doing these conversions?

I seem to remember: IAI, STAero, A US facility as well.... Is there really that much of a demand for these conversions. I know they´ll obviously have a longer conversion time than the smaller Ac but all the same I don´t expect we´ll be seeinmg a glut of 747-400´s coming into the freighter market any time soon. Ok the 380 may displace some but I think the residual value as pax ac in the emerging markets such as India and China will swallow these up.

[swh]

I hear Sq has plans to remove the 744 from pax operations from 2008, converting the 744 pax fleet into cargo.

Thats one conversion job that would tak years to complete.

[Sonic Zepplin]

On the contrary, I think with the growth of cargo ops on the way up in ASIA, due to just in time inventory, makes these birds worth there weight in gold.

747-100-200-300's are all racking up the hours and will eventually have to be replaced with at least equal aircraft.

If PAX fleets are moving to twin ETOPS type aircraft for long haul routes
(777 & 330) I see the 400 have plenty of useful life left on hulls to move rapidly into cargo market.

Not to mention profits from conversions (I think there are 2 capable of such work) I believe I read on this form a cost of $25 MIL to do conversion.

[rotornut]

As an aside, I wonder how many 747s of all series have been retired or scrapped?

[Sonic Zepplin]

here is some relevant info on the topic:

http://www.aviationnow.com/avnow/news/channel_awst_story.jsp?id=news/2004sb06.xml