Boeing, GMR to convert passenger planes into freighters

The announcement comes close on the heels of Air India’s mega order to Boeing and Airbus, with the former bagging a firm order for 220 passenger jets. Boeing is trying to make inroads into India, one of the top aviation markets globally, and is investing in segments like supply chain sourcing and logistics as well.

Boeing and GMR Aero Technic did not give details of the likely investment for the project or the production capacity. Senior executives at both companies said they were working on finalisation and operationalisation of the conversion line, which would take around 18 months.

“To begin with, we will use one of our existing lines for this purpose. We are open to adding an additional line as well in the future, depending on demand,” GMR Aero Technic’s Chief Executive Officer Ashok Gopinath told The Indian Express. He said that while the facility will initially be for narrow-body 737 planes, GMR Aero Technic was open to a similar opportunity in the wide-body segment as well “as and when demand is there”.

A converted freighter is usually a mid-life passenger aircraft that is changed into a cargo plane. Although Boeing manufactures freighter versions of various aircraft, all of those are in the wide-body segment. The 737– one of the most popular single-aisle aircraft globally — is manufactured only as a passenger jet, which means that it has to be converted to be used as a freighter. The demand for narrow-body freighters has been on the rise as ferrying of cargo by air is picking up, particularly on short to medium-haul routes in regions like Asia and Africa.

As per Boeing’s commercial market outlook, India’s air cargo growth is expected to average 6.3 per cent annually, driven by the country’s manufacturing and e-commerce sectors. Boeing India president Salil Gupte said that India is an air cargo market “whose time has come”.

According to Airports Authority of India data, domestic cargo handled at Indian airports in April-Jan of the current fiscal was 1.08 million tonnes, up 10.6 per cent year on year. In 2021-22, domestic air cargo had registered a growth of almost 24 per cent over the previous year.

Gupte said that globally, there would be a demand for over 1,700 converted freighters over the next 20 years, of which around 1,200 would be narrow-body freighters. Of those 1,200 aircraft, roughly half would be in Asia and Africa. Given the high growth potential in sectors like e-commerce and electronics manufacturing in India, the country could end up with a large number of converted narrow-body freighters, the Boeing executive said.

Boeing’s rival Airbus also expects high demand for narrow-body freighters. In its long-term market outlook, Airbus said that in 2022-2041, global demand for freighters is estimated to be around 2,440 aircraft, which would include new as well as converted freighters. Of that, 990 are likely to be single-aisle freighters.

The 737-800 converted freighter has a range of 2,025 nautical miles and a net revenue payload capacity of 22.7 tonnes. The company describes it as the “world’s most efficient and most reliable standard-body freighter”.