BBAM Orders Three 737-800 Boeing Converted Freighters

Agreement brings total number of orders and commitments for the 737-800BCF to 130

Boeing to expand 737-800BCF production capability, inaugurating a new production line this year at Guangzhou Aircraft Maintenance Engineering Company Ltd. (GAMECO) to meet strong demand

SINGAPORE, February 11, 2020 — BBAM and Boeing [NYSE: BA] announced the lessor has ordered three 737-800 Boeing Converted Freighters (BCF), underscoring the growing e-commerce and express sector of the air cargo market. BBAM has one of the world’s biggest Next-Generation 737 fleets and has chosen the BCF program to convert three airplanes in its existing fleet.

“Through the Boeing freighter conversion program, these 737-800s will continue to deliver value for our customers and investors for many years to come,” said Steve Zissis, president and CEO of BBAM. “The 737-800 is an integral part of BBAM’s managed fleet of commercial passenger jet aircraft, and we see strong interest from our customers in the standard-body freighter. We chose Boeing’s conversion program because we believe it maximizes the platform’s capability and reliability.”

The 737-800BCF is built on the Next-Generation 737 platform, well known for its reliability and efficiency. The airplane carries up to 52,800 pounds (23.9 metric tons) of payload with excellent operating economics to maximize operators’ profits. Since entering service in 2018, the 737-800BCF has won 130 orders and commitments.

“BBAM is one of the world’s leading leasing companies, known for their smart approach to investment. We are delighted that BBAM has selected the Boeing Converted Freighter program to extend the life of their Next-Generation 737s and capture a new market opportunity in the years ahead,” said Ihssane Mounir, Boeing’s senior vice president of Commercial Sales and Marketing. “This agreement shows how we can serve our customers by delivering efficient and reliable airplanes and a portfolio of services that extracts value throughout the life of those jets.”

According to the Boeing Commercial Market Outlook, 2,820 freighters will enter the global fleet to meet market demand, including 1,220 standard-body passenger-to-freighter conversions. Responding to strong market demand, Boeing announced plans to add a 737-800BCF production line at Guangzhou Aircraft Maintenance Engineering Company Ltd. (GAMECO) this summer.

“Passenger-to-freighter conversions give us the opportunity to demonstrate our skill and expertise,” said GAMECO General Manager Norbert Marx. “Boeing Converted Freighters are the market leader – we are proud to partner with Boeing on this program.”

BBAM is the world's largest dedicated manager of investments in leased commercial jet aircraft providing over 200 airline customers in more than 50 countries with fleet and financing solutions over the last three decades. BBAM is the only manager in the aircraft leasing industry focused exclusively on generating investment returns for third-party investors. BBAM currently has more than US $27 billion of assets under management and employs over 150 professionals at its headquarters in San Francisco and in additional offices in Tokyo, Singapore, Zurich, Dublin, and Santiago. For more information about BBAM, please visit its website at www.bbam.com.

GAMECO (Guangzhou Aircraft Maintenance Engineering Company Ltd.), established in October 1989 at Guangzhou Baiyun International Airport, is a joint venture between China Southern Airlines Co. Ltd. and Hutchison Whampoa (China) Ltd. from Hong Kong, that specializes in aircraft and airborne component maintenance, repair and overhaul. GAMECO provides comprehensive, high-quality and highly efficient services to customers, covering line maintenance, base maintenance, component repair & overhaul, aircraft engineering, training and technical service of ground support equipment.

Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. A top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Boeing employs more than 160,000 people worldwide and leverages the talents of a global supplier base. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.

Garuda Indonesia to lease two B737-800 freighters from GECAS

Garuda Indonesia (GA, Jakarta Soekarno-Hatta) has entered into a lease agreement with GECAS for two B737-800 Boeing-converted freighters (BCF).

The P2F-converted aircraft are slated to be phased in around mid-2020 and will provide additional capacity to Cargo Garuda Indonesia, the Indonesian National carrier’s strategic business unit.

At present, the carrier uses three B737-300(F)s from My Indo Airlines (2Y, Jakarta Halim).



As previously reported, Garuda intends to place eight dedicated freighters with resurgent carrier Merpati (MNA, Jakarta Soekarno-Hatta) in 2020 including two ex-Citilink (QG, Surabaya) ATR72s and at least one A330 freighter. Collectively, the jets will be deployed to Indonesia's Papua province.

ch-aviation

Amazon secures 15 more B737-800 freighters

Amazon.com has announced it has agreed to lease fifteen more B737-800(BCF)s from GECAS for use in expanding its US delivery network operations.

In a statement, the online retailer said the fifteen jets would deliver by 2021 and will supplement the five B737-800(BCF)s it already leases from GECAS. The aircraft in question are operated by Southern Air (9S, Cincinnati Int'l) for fellow Atlas Air Worldwide Holdings subsidiary, Atlas Air (5Y, New York JFK).

“These new aircraft create additional capacity for Amazon Air, building on the investment in our Prime Free One-Day program,” Dave Clark, Senior Vice President of Worldwide Operations at Amazon, said. “By 2021, Amazon Air will have a portfolio of 70 aircraft flying in our dedicated air network.”

According to the ch-aviation fleets advanced module, Amazon's US dedicated cargo fleet comprises forty-six freighters, including B737-800(F)s, B767-200(F)s, and B767-300(F)s operated by each of ABX Air, ATI - Air Transport International, Southern Air, and Atlas Air.



Amazon will open new facilities this year at Fort Worth Alliance Airport, in Wilmington, OH, and in Rockford. Its main Air Hub at Cincinnati Int'l will open in 2021.

Atran introduces Russia’s first Boeing 737-800BCF

Volga-Dnepr Group’s express carrier’s fleet has grown to five narrow-body freighters (Atran)

Atran Airlines, the Russian air express cargo carrier within the Volga-Dnepr Group, has enlarged its fleet with the delivery of its first Boeing 737-800BCF, increasing its total number of narrow-body freighters to five.

The CFM56-7B24-powered aircraft, with tail number VQ-BFS (MSN 32616), is one of two Boeing Converted Freighters (BCFs) which are on lease from GE Capital Aviation Services (GECAS).

Having successfully completed certification of the Boeing 737-800BCF in Russia, the airline is the first to operate this type of freighter, thereby enabling Atran to benefit from its enhanced operational capabilities on short- and medium-haul routes.

The additional aircraft will boost the carrier’s capacity whilst giving a broader choice of logistics solutions linking routes between Russia, the CIS and Europe. The freighter has already operated its first flights from Moscow (Vnukovo) to Norilsk and Yakutsk, carrying consumer goods for the population of the Siberian and Far Eastern parts of Russia, including perishables, general cargo and e-commerce shipments.

“As the upgraded version of the Boeing 737, this airplane has more technical and operational capabilities. It allows us to offer more main-deck cargo capacity thanks to the aircraft’s extended, broader fuselage, which is six metres longer, and increases the solutions we can offer for the transportation of various types of shipments, including oversized freight which can be loaded through the wider main-deck cargo door,” explains Dmitry Obsharov, Atran’s general director.

“We are confident that with this new aircraft type we will be able to guarantee high service quality for our customers, leveraging trade flows in the markets we serve, with a special focus on China-Russia routes and the emerging volumes of cross-border e-commerce and mail shipments. It will also help to increase aircraft utilisation within our existing network,” Obsharov adds.

In addition to offering 11 standard aviation pallet positions and containers in the cargo compartment, the Boeing 737-800BCF incorporates a reconfigurable cargo handling system that can easily be adjusted for various types of unit load devices (ULDs).

Atran describes the -800BCF as “an ideal aircraft for European short and medium-haul cargo operations”, citing its advanced technical characteristics, together with its ICAO Stage 4 noise certification.

Atran Airlines is one of the oldest established, Russia-based specialist airfreight carriers. Acquired by the Volga-Dnepr Group in 2011, its fleet presently includes four B737-400SFs as well as the newly added B737-800BCF, all operating from its base at Moscow’s Vnukovo Airport.

The B737-800BCF is a newcomer to the Volga-Dnepr group and complements its existing fleet of Antonov An-124-100s, Ilyushin IL-76TD-90VDs, Boeing 747Fs and Boeing 737-400Fs.
ES in Air Transport

West Atlantic expecting maiden B737-800BCF in mid-1Q18

West Atlantic Sweden (SWN, Gothenburg Landvetter) has confirmed it is expecting its first B737-800(BCF) to deliver during the first quarter of next year. In June this year, the Swedish freight specialist agreed to lease four aircraft of the type from GECAS with its original projections indicating a late 2017 delivery.

However, as the B737-800(BCF) programme's launch operator, West Atlantic said in its 2Q17 interim financial filing that the first aircraft, currently undergoing conversion at Boeing's modification facility at Shanghai Pudong, is on track to now deliver in February 2018. Thereafter, the second, third, and fourth aircraft are due in August, November, and February 2019.

Once completed, the B737-800(BCF) will be equipped with CFM56-7B engines, and will be able to carry up to 23.9 tonnes of cargo with twelve main deck positions over 2,000 nautical miles.

"The B737-800(BCF) will be an enabler for us to make a leap in reliability, capacity, and ability to expand in areas of the world away from our traditional markets, such as Asia," West Atlantic's CEO, Fredrik Groth, said at the time.

Specializing in mail and express freight, West Atlantic operates three B767-200(SF)s, thirty-two BAe ATP(F)s, and two CRJ-200(F)s while its Atlantic Airlines (UK) (NPT, Coventry) unit operates seven B737-300(F)s and nine B737-400(F)s (four of which are leased to EAT Leipzig).

Boeing Launches Next-Generation 737 Boeing Converted Freighter

SHANGHAI, Feb. 24, 2016 /PRNewswire/ -- Boeing [NYSE: BA] today launched the Next-Generation 737-800 Boeing Converted Freighter (BCF) with orders and commitments for up to 55 conversions from seven customers.

"The Next-Generation 737 provides exceptional value to express freight carriers through its superior payload, range, reliability and efficiency," said Stan Deal, senior vice president, Commercial Aviation Services, Boeing Commercial Airplanes.

"While the recovery of the global cargo market has been slow, we see demand for freighters, such as the 737-800BCF, that will carry express cargo on domestic routes," Deal said. "Over the next 20 years, Boeing forecasts customers will need more than 1,000 converted freighters the size of the 737, with China's domestic air freight carriers accounting for nearly one-third of the total market."

Through its freighter conversion program, Boeing transitions passenger airplanes into freighters, extending the economic life of the airplane. The 737-800 is the first Next-Generation 737 that Boeing has offered for conversion. While large freighters carry high-density cargo on long-range routes, the 737-800BCF will primarily be used to carry express cargo on domestic routes.

The 737-800BCF carries up to 52,800 pounds (23.9 metric tons) of cargo, flying routes of nearly 2,000 nautical miles (3,690 kilometers).

Twelve pallet positions – 11 standard pallets and one half-pallet – provide 5,000 cubic feet (141.5 cubic meters) of cargo space on the main deck. This will be supplemented by two lower-lobe compartments, combined providing more than 1,540 cubic feet (43.7 cubic meters) of space for revenue-generating cargo.

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Boeing has won a total of 30 firm orders and 25 commitments for the 737-800BCF:
YTO Airlines, based in Hangzhou, China, has ordered 10 conversions with commitments for 10 additional conversions
China Postal Airlines, based in Beijing, has ordered 10 conversions
GE Capital Aviation (GECAS), which will provide the initial airplane for conversion, has ordered five conversions
An unannounced customer has ordered five conversions with two commitments

In addition, Boeing has secured 13 commitments for conversions from:
SF Airlines, based in Shenzhen, China
Cargo Air, based in Sofia, Bulgaria
An unannounced customer

The first 737-800BCF is expected to be delivered in the fourth quarter of 2017.

Existing passenger airplanes will be modified at select facilities located near conversion demand, including Boeing Shanghai. Modifications include installing a large main-deck cargo door, a cargo-handling system and accommodations for up to four non-flying crew members or passengers.

Boeing is a leader in providing 24/7 support and service to the global aviation industry. In addition to designing freighter conversions and interior modifications, Boeing offers the industry's largest portfolio of services including aftermarket parts, subscription-based maintenance programs, engineering support, crew training, route planning, digital crew scheduling, advanced data analytics and software to enhance airlines and leasing company operations.