Conversion sites – the solution for an unstable market

This is the most natural development, and it is going to fully exploit the circumstances in the market. It’s based on a very comprehensive survey of all market aspects, and in fact is going to change its basic features.

The idea, in a nutshell, is this – joint ventures between owners of “older” passenger aircraft and the people who know how to convert them so they can be used for many more years‫ ‬for other tasks – mainly freight.

The Bedek group of Israel Aerospace Industries is evaluating possible co-operation agreements with operators of passenger aircraft that are candidates for conversion into cargo configurations.

The evaluation is an outcome of Bedek’s strategic plan to increase its international presence, by establishing conversion sites that will use the Israeli company’s STC for different types of aircraft.

“The uncertainty about the number of aircraft that we can bring at any given time to such a site is a problem. The potential partners want to know the work volume at any moment,” said Jack Gaber, IAI’s corporate deputy vice-president, and general manager of marketing and business development for the Bedek group. He confirmed that talks are under way with potential partners.

He explained that this situation initiated the current evaluation: “We want to establish such sites with airlines and operators of a large number of older aircraft that are about to be replaced with newer ones. That can ensure a steady flow of work in the conversion site.”

Bedek forecasts that the entry-into-service of the 787 will accelerate the retirement of many 767s and later 777s. Bedek is already working on an STC for the conversion of the 777.

Currently, the main conversion lines at Bedek are for the Boeing 747-400 and the 767-200 and -300.

We can expect the establishment of conversion sites in places that never before were connected to such activity.

Common interests, risk sharing or other definitions are based on one thing – the aircraft conversion market is a fluctuating one, and this creates some basic rules.

, ,

Leave a Reply