The increasing demand for cargo planes has prompted Israel Aerospace Industries (IAI) to announce a new site for converting passenger aircraft for freight use in Abu Dhabi, marking its second expansion in a week. IAI will establish two lines for converting Boeing 777-300ER widebody aircraft at a maintenance facility managed by Etihad Airways Group, complementing its existing 777 facility in Tel Aviv, according to a joint statement from the companies on Wednesday.
The demand for freighter aircraft has surged as COVID-19 lockdowns accelerated the shift to online shopping, while passenger flights decreased, restricting the utilization of airplane bellies that typically accommodate most air cargo. Additionally, the pandemic has also led to the retirement of older planes, amplifying the supply of aircraft ready for conversion, including the relatively efficient twin-engine 777.
Commenting on the matter, Yossi Melamed, Executive Vice President and General Manager of Aviation at IAI, stated in an interview, "We have seen a sharp increase in demand over the past few years, and the 777 will be the aircraft of the future as this move will provide us with the additional capacity we need."
**Market for Converting 150 Aircraft**
Melamed indicated that the company expects a market for converting 150 freighter aircraft over the next five years, adding that demand for the 777 should rebound due to its larger cargo capacity compared to the specialized freighter version, the Boeing 777F, which is based on the smaller passenger variant, the 200. He also noted that the aircraft will be a natural successor to the 747 and MD-11 freighters.
The agreement with Etihad Airways is based on a deal signed with General Electric's leasing arm for converting 777 aircraft in 2019. Work on the first aircraft under this agreement began earlier this month in Israel, taking approximately 130 days.
It is worth mentioning that the shift towards the Middle East follows IAI's announcement on August 19 that it would open a site in Addis Ababa for converting smaller Boeing 767 wide-body aircraft in collaboration with Ethiopian Airlines Group, adding to its facilities in Tel Aviv and Mexico.
The Israeli company has two sites for converting narrow-body Boeing 737 aircraft in China and previously agreed to establish another site in Naples, Italy, with Atitech earlier this year.
**Desirable Partnership**
Melamed stated that Etihad Airways, specialized in long-haul flights, is a preferred partner due to its engineering expertise, adding that communication between the two companies would not have been possible without the normalization of relations between Israel and the UAE last year. Melamed also mentioned that IAI has decided not to work on the Airbus A321 passenger aircraft, which are being converted by other specialists, but it is considering options for larger Airbus models.
**Airbus Prepares to Compete with Boeing in the A350 Cargo Aircraft Market**
The European aircraft manufacturer announced in July that it plans to separately produce a new freighter version of its larger A350 aircraft by 2025, while Boeing looks to launch a dedicated freighter version of the updated 777X.
