When analysing the market for passenger-to-freight (P2F) conversions, it’s clear that the interest is strong amid an ever-growing airfreight sector. During the pandemic, there was a significant surge in demand for cargo carrying aircraft due to the sudden absence of belly space in passenger planes.

This created a “gold rush” for airfreight. As the situation has stabilised, the demand for airfreight remains higher than before the pandemic, which is driven by the growth of e-commerce, globalisation shifts, and fleet replacement.

“You cannot currently buy a new 60-tonne freighter that is authorised to operate worldwide. The availability is limited. For us, this presents a significant opportunity, particularly in terms of sustainability,” Elbe Flugzeugwerke (EFW) CEO Jordi Boto stated.

“In our role as a converter, we contribute to sustainability by upgrading existing aircraft rather than manufacturing entirely new ones. This process utilises 60-70 percent of the original aircraft, significantly reducing the CO2 footprint compared to building new planes from scratch. For example, our facility recycles over 50 percent of the materials from older aircraft, helping to minimise waste and environmental impact.

“As the aviation industry evolves, the need for more efficient, environmentally friendly aircraft becomes even more critical. By converting older models, we extend their lifespan and improve their performance, meeting both current and future standards. This approach not only supports environmental goals but also enhances economic efficiency, providing a competitive edge in the market.”

Model interest

While airfreight accounts for just one percent of global goods transport by volume, it represents 35 percent of the value of traded goods. This is because airfreight is often used for high-value items like electronics. Despite the higher cost of airfreight compared to sea freight, the gap has narrowed since the Covid-19 pandemic, making airfreight a more attractive option for both consumer goods and industrial components.

Newer aircraft models offer improved efficiency and productivity, further boosting the economic viability of airfreight. As a result, there is a visible change in how industrial value chains use airfreight, with increased adoption.

“Currently, EFW is working on optimising the A321 for different types of cargo, developing versions that reduce ballast to enhance volume capacity or optimise the plane for carrying heavier loads. This flexibility allows the company to better meet customer needs and stay ahead of competitors,” Boto explained.

“The A321 is a prime example of value in aircraft design and a natural replacement for the 757. It offers several advantages, such as carrying more weight and consuming less fuel.

“While the exact fuel consumption can vary depending on the specific mission and configuration, generally, the A321 consumes significantly less fuel per tonne per mile compared to the 757.

“One major improvement is that the A321’s cargo hold is fully containerised, unlike the 757, where cargo is manually loaded and unloaded. This containerisation makes the A321 more efficient and streamlined for cargo operations.”

Shifting approach

Over the past three years, EFW has worked hard to rebuild and stabilise its supply chain, ensuring that components and structural parts are more reliable after the pandemic left shortages in parts.

However, while the company’s supply chain is stabilising, we are encountering new challenges due to the broader impact of supply chain disruptions on original engine manufacturers (OEMs). There is a notable scarcity of passenger aircraft, with manufacturers struggling to meet their delivery commitments. This shortage affects various models, including the A321 and the 787. The delay in delivering new aircraft has forced some customers to keep their older passenger planes in operation longer than planned, impacting EFW’s ability to convert these aircraft into freighters as scheduled.

“We anticipate that 2024, 2025, and 2026 will be years of consolidation for us, focusing on streamlining our industrial processes and managing our footprint,” Boto explained. “In addition to supply chain and feedstock issues, the pandemic has accelerated the retirement of skilled workers, creating a significant shortage of technicians and engineers.