The Farnborough International Air Show is an unlikely event for a freighter aircraft to shine. The week-long exhibition is generally associated with flying displays and manufacturers showcasing military and new passenger aircraft rather than lowly cargo planes. This year’s event, however, turned into a triumph for Boeing’s 777-200 freighter. The planemaker started the show with the announcement of an order for 14 777 freighters on the first day and followed up the next day with the revelation that Volga-Dnepr Group had signed a letter of intent to acquire 29 units.
The orders confirmed noises about resurgent optimism in airline boardrooms. Only a few months back it seemed that airlines were still wary of investing in cargo aircraft after the global economic slump had turned them into liabilities on balance sheets. If anything, airlines appeared to be more likely to go for older freighters, which was reflected in the rampant demand for 747-400 and MD-11 freighters.
Scepticism may still be lingering at most passenger carriers, but cargo operators – including integrators – are decidedly more upbeat on the prospect for freighters. FedEx placed an order for 12 777-200Fs in June.
Several combination carriers have ordered 777 freighters this year. Lufthansa and All Nippon Airways signed up for two units each and Qatar Airways signed a letter of intent for five 777-200Fs.
DHL’s management indicated that its order, which is worth US$4.7 billion at list prices and includes options for seven more aircraft, was made in response to the rapid growth in the company’s e-commerce business, but also for the purpose of fleet renewal.
“The acquisition of the 14 Boeing airplanes reflects a gradual replacement of our older intercontinental fleet,” declared Ken Allen, CEO of DHL Express. “As the most fuel-efficient freighter type with the best long-haul range, these aircraft will contribute to our emissions reduction targets and allow us to serve even more markets with non-stop flights.”
Volga-Dnepr and its UK-based subsidiary CargoLogic Holdings have so far concentrated on 747s in the large widebody freighter bracket (other than the Antonov 124). The 777 order marks the opening of a new line for the carrier. Management commented that the type will allow it to open new market opportunities.
The company later indicated that aircraft availability was another factor in the decision to embrace the 777. Alongside the 105-ton aircraft, it also signed up for five more 747-8Fs, but questions over Boeing’s 747-8 programme apparently also played a role. Last year the manufacturer scaled down production of the larger freighter to one unit every two months. With its current order book, it will take Boeing into 2022 to deliver the outstanding 747-8 orders.
When the planemaker slowed down its 747-8 output it also throttled back on the 777 programme. Since August 2017 it has turned out five units a month, down from 8.9 a month previously. By the end of April it had delivered 139 777-200Fs, with 34 on its order books. The recent deals with Volga-Dnepr and DHL extend the likely waiting period for new orders, which causes a dilemma for carriers that are looking to add large widebody freighters to their fleet.
The dearth of large widebody freighters for some time has reinforced calls for a conversion programme for 777 passenger aircraft. Sceptics have pointed out that the 777 – like most widebodies developed after 1990 – is optimized for passenger operations, which makes a conversion expensive, but the lack of alternatives is prompting increased interest in this option.
Stan Wraight, president and CEO of Strategic Aviation Solutions International, expects 777 conversions to come into play before long.
Boeing indicated in late May that it was studying the market for a possible conversion programme, but maintenance and conversion specialist Bedek Aviation signalled at the Farnborough event that it was close to unveiling its scheme for turning 777s into all-cargo configuration.
Given its larger size, potential operators favour the 777-300 over the -200 version, but the latter is becoming available in larger numbers, which is driving down the residual value of feedstock for conversions. By most estimates, a converted 777-200 freighter would cost about US$60 million, which is much cheaper than a production 777-200F.
By Ian Putzger
Air Freight Correspondent | Toronto
