Surge in interest for latest generation conversions

Surge in interest for latest generation conversions

The freighter leasing landscape in Asia is experiencing a notable surge in interest, particularly in the latest generation of freighter conversions. This trend is driven by growing demand for cargo transportation and the adaptability of newer aircraft models. Key players are eyeing popular feedstock options such as the Boeing 737NGs, Airbus A320s, A321s, and A330s, while new entrants are adding to the competitive mix, promising a dynamic future for the region’s freighter leasing market.

Lessor interest

Asian lessors are increasingly turning their attention towards the latest generation of freighter conversions due to several factors. The Asia-Pacific region has long been a major player in the global air cargo market, with its rapid economic growth and expanding e-commerce sector driving demand for freighter aircraft. As a result, leasing companies are increasingly looking to capitalise on this growth by investing in converted freighters to meet the needs of airlines operating in the region.

Speaking on this occasion, Eamonn Forbes, SVP & Chief Commercial Officer at Titan Aviation Leasing, stated: “Operators in Asia are increasingly recognising the benefits of the latest freighter conversions, which offer improved fuel efficiency, lower operating costs, and enhanced cargo capacity compared to older models. As a result, lessors are showing keen interest in these modern freighter conversions, viewing them as lucrative investment opportunities to meet the evolving needs of operators while ensuring profitability.” 

Additionally, the latest freighter conversions offer improved fuel efficiency, lower operating costs, and enhanced cargo capacity compared to older models. These advantages make them attractive options for leasing companies seeking to meet the evolving needs of cargo operators while ensuring profitability.

Feedstock trends

Among the aircraft models garnering significant interest for freighter conversions in Asia are the Boeing 737NGs, Airbus A320s, A321s, and A330s. These platforms are popular choices due to their widespread availability, established track records, and compatibility with conversion programmes.

“The feedstock trends for aircraft models such as the Boeing 737NGs, Airbus A320s, A321s, and A330s are highly significant in shaping the dynamics of the Asian freighter leasing market,” added Tan Boon Keng, SVP, GM & Head of Aircraft Leasing Aviation Asset Management Commercial Aerospace, ST Engineering. 

“For longer-range operations, the Airbus A330 has garnered considerable interest, offering ample cargo space and extended range capabilities.

The availability of these popular feedstock options is driving the expansion of the Asian freighter leasing market, enabling operators to modernise their fleets and meet the growing demand for air cargo services across the region,” he continued. 

The Boeing 737NG series, in particular, has emerged as a preferred feedstock option thanks to its versatility and reliability. With numerous operators retiring older 737NG passenger aircraft, there is a sizable pool of candidates ripe for conversion into freighters, meeting the growing demand for narrow-body cargo capacity.

Similarly, Airbus A320s and A321s are in high demand for freighter conversions, catering to the needs of regional and medium-haul cargo operators. Their design and spacious cabins make them ideal candidates for transforming into freighters, enabling operators to transport goods efficiently across shorter distances.

For longer-range operations, the Airbus A330 has garnered considerable attention, offering ample cargo space and extended-range capabilities. As air cargo continues to play a vital role in global supply chains, the A330’s versatility makes it a sought-after asset for freighter leasing companies looking to capitalise on intercontinental freight demand.

New entrants

The growing interest in freighter leasing in Asia has attracted several new market entrants keen on tapping into this lucrative segment. Additionally, the introduction of new market entrants in the region has also contributed to the growth of the freighter leasing landscape. These new players are both established lessors expanding into the freighter market and new entrants looking to capitalise on the growing demand for air cargo services. These players bring fresh perspectives, innovative solutions, and increased competition, driving further growth and evolution within the industry.

“With Asia poised to become a leading hub for air cargo operations, these new entrants contribute to the diversification and expansion of the freighter leasing market, fostering innovation and driving growth.” Nuno Leal, Chief Marketing Officer, World Star Aviation.

These new entrants range from established lessors expanding their portfolios to start-ups capitalising on emerging market opportunities. With Asia poised to become a leading hub for air cargo operations, these entrants play a crucial role in shaping the region’s freighter leasing landscape and fostering innovation in aircraft leasing and logistics solutions.

The freighter leasing landscape in Asia is witnessing a significant transformation, marked by a surge in interest in the latest generation of freighter conversions. With the growing demand for air cargo services and the availability of popular feedstock options such as the Boeing 737NGs, Airbus A320s, A321s, and A330s, the region’s freighter leasing market is poised for expansion.

New market entrants further contribute to this dynamic landscape, introducing fresh perspectives and innovative solutions to meet the evolving needs of cargo operators. As Asia solidifies its position as a key player in global trade and logistics, the future looks promising for the region’s freighter leasing industry, driven by technological advancements, market dynamics, and the relentless pursuit of excellence in air cargo transportation.

Picture of Ajinkya Gurav

Ajinkya Gurav

With a passion for aviation, Ajinkya Gurav graduated from De Montford University with a Master’s degree in Air Transport Management. Over the past decade, he has written insightful analysis and captivating coverage around passenger and cargo operations. Gurav joined Air Cargo Week as its Regional Representative in 2024. Got news or comment to share? Contact ajinkya.gurav@aircargoweek.com

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