Air cargo revenues forecasted to be over US$150 billion in 2021 with traffic expected to double over next 20 years reflecting growth in e-commerce
Dublin-based aircraft lessor Avolon says it is intent on becoming a major player in the global air cargo market, a sector in which revenues are forecast to reach $150 billion this year.
Avolon chief executive Domhnal Slattery said the company is focused on “capitalising on the unparalleled growth in e-commerce” by agreeing a deal to convert passenger aircraft to carry more cargo.
The lessor has signed an agreement with Israel Aerospace Industries' (IAI) for its Airbus A330-3000 freight conversion programme. The deal sees Avolon taking 30 conversion slots from 2025 to 2028. The Irish lessor owns more than 200 A330 aircraft.
Airbus projected A330-300P2F conversion Program , with upto 23 main deck pallets.
Israel Aerospace Industries' (IAI) conversion programme increases cargo volume capacity with up to 27 main deck pallet positions and leads to a better loading performance, Avolon said.
“Air cargo traffic expected to double over the next 20 years. This agreement signals Avolon’s intention to be a leading player in that expansion,” said Mr Slattery.
“We believe the IAI A330-300 P2F will be the wide body freighter of choice this decade and beyond, replacing retiring aircraft and providing the volume capacity required to meet market needs,” said Mr Slattery.
“In partnering with IAI, we have identified the most efficient operator in the freight conversion market, guaranteeing more cargo pallet capacity and crucially, faster turnaround times, in a market where every inch and second count,” he added.
The new deal comes weeks after Avolon announced the first deals for its VA-X4 electric, vertical take-off and landing (Evtol) aircraft.
IAI President & CEO, Boaz Levy, said:
"For the second time in recent years, IAI's Aviation Group is making history. Just two years ago we announced that we will be the first in the world to perform a passenger-to-freighter conversion on the B777-300ER, and today we are announcing that we will perform the cargo conversions for the Airbus A330-300 aircraft.
IAI has proven time and again its leading position as the powerhouse of cargo conversions, globally. I am grateful to our partners at Avolon for their faith in our abilities."
In another development , Dublin-based Genesis has entered into an agreement with Boeing to convert two B737-800 (NG) aircrafts into freighters.The first converted aircraft will be ready to enter service in spring 2022 with the second scheduled to begin operations a year later.
DHL Express was the first operator of the A330-300P2F conversion Program , taking delivery of the aircraft in late 2017.
About Avolon
Headquartered in Ireland, with offices in the United States, Dubai, Singapore, Hong Kong and Shanghai, Avolon provides aircraft leasing and lease management services.
Avolon is 70% owned by an indirect subsidiary of Bohai Leasing Co., Ltd., a public company listed on the Shenzhen Stock Exchange (SLE: 000415) and 30% owned by ORIX Aviation Systems, a subsidiary of ORIX Corporation which is listed on the Tokyo and New York Stock Exchanges (TSE: 8591; NYSE: IX).
Avolon is the world’s third largest aircraft leasing business with an owned, managed and committed fleet, as of 30 June 2021 of 837 aircraft.
About IAI
Israel Aerospace Industries (IAI) is a world-leading aerospace and defense company innovating and delivering state-of-the-art technologies in space, air, land, naval, cyber & homeland security for defense and commercial markets.
Combining the “Start-up Nation” spirit of innovation with decades of combat-proven experience, IAI provides customers with tailor-made, cutting-edge solutions to the unique challenges they face including satellites, UAVs, missiles, intelligence solutions, weapon systems, air defense systems, robotic systems, radars, business jets, aerostructures, and more.
Established in 1953, IAI is one of Israel’s largest technology employers with offices and R&D centers in Israel and abroad.
Picture : Airbus
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