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Brazil added its second 737NG freighter operator this year when Modern Logistics began flying the type, even as some of the country’s other carriers take on more Classics.
Modern Logistics is undergoing a transformation to grow its presence in the logistics industry.
“Part of this investment plan was to bring new aircraft,” Chief Executive Cristiano Koga said during a fireside chat at Cargo Facts LATAM 2024 in Panama City this month. Excerpts of this conversation are included in today’s episode of the “Cargo Facts Connect” podcast.
“We are very confident that the aircraft that we have signed and are already operating in Brazil will help us achieve this long-term goal to be an integrated logistics provider with a time-definite product end to end,” Koga notes in the chat.
Modern has leased two 737-800BCFs from BBAM, with the 2004-vintage unit 33566 arriving in October 2023 and its 2003-vintage sibling (33550) arriving in February 2024. They join one 737-400F (25374) and one 737-300F (24219).
“The performance of [the -800s] from a payload perspective, from a cost-to-serve-per-unit perspective is amazing,” Koga said. “So, we’re very excited about the fleet. But again, it needs to serve the right industry, the right sector and the right routes. That’s why one of the pillars of our long-term strategy is network planning.”
Even though Modern has phased out a 737-400F and a 737-300F, it still sees a use for them in at least the next six to twelve months.
“The -300 makes sense for specific projects, like charters or even e-commerce, because it’s the cheapest aircraft,” Koga said. “So, we still have the Classics, we have the two NGs, and it’s proving to be a very good decision to apply [the Classics] to these kinds of projects and leave the NGs for the big routes and international expansion as well.”
Countries at the top of the list to see Modern’s 737-800BCFs include Argentina, Chile and Colombia, he added.
Tune in to this week’s “Cargo Facts Connect” for the discussion with Koga. -
Hamden Aviation is focusing on Latin America as it looks to grow its presence in the freighter segment.
The Hamden, Conn.-based lessor began supporting the industry by providing CFM56-3C1 engines to cargo operators with 737 Classics.
“It was just sort of an organic entry [into the freighter space] from the -3C1 market, then working with Classics, then having opportunities, primarily with a focus on emerging markets,” Executive Vice President Dora Alexander told Cargo Facts at Cargo Facts LATAM 2024 in Panama City this week.
Hamden hopes to increase its market share in Latin America and capitalize on the region’s demand for 737 Classic freighters.
“We believe the appetite is there,” Angel Mora, financial analyst at Hamden, says in this week’s episode of “Cargo Facts Connect.” “We’re talking about phasing into Classics and getting rid of the 727s, so there are still plenty of companies out there that are looking for Classics.”
Additionally, the lessor plans to add the ATR 72-500F to its freighter portfolio and is evaluating Embraer’s new E190F and E195F conversions.
“We think [the E-Jet platform] makes a lot of sense in terms of that replacement for the -300 and for that sector of the narrowbody,” Alexander says. “So, it really marries well with our relationships in emerging markets and our current lessee base as well as the international connections that we have.”
Tune in to this week’s “Cargo Facts Connect” to hear more on Hamden Aviation as Alexander and Mora speak with Cargo Facts Editor Jeff Lee in Panama City.
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Singapore Airlines is preparing for the arrival of its first A350F as it continues to manage the hurdles challenging the freighter market.
The airline will gradually retire its 747-400Fs as Airbus starts delivering its new large-widebody in 2026, but no estimate has been given for when the transition will be complete.
“It’s really a lot of work, and rightly so,” Singapore Airlines Senior Vice President of Cargo Marvin Tan said during a fireside chat at Cargo Facts Asia 2024 in Singapore last week. “I mean, we really have to go through all of our processes, our systems, our training, our preparedness, even staff engagement, with a fine-toothed comb.”
Listen to Tan on the latest episode of the “Cargo Facts Connect” podcast.
Singapore Airlines was the first 747-400F operator to commit to the A350F and has seven on firm order.
“From an operational perspective, I think two things. One is that, obviously, you lose the nose-loading capability; for us this is a fairly small segment of the cargo, so I think it’s manageable for us,” Tan says. “The other aspect, of course, is more just the loading configuration, because of the different contours of the aircraft, so some adjustment needed there.”
Geopolitical and economic issues as well as labor and supply chain challenges continue to affect the airfreight industry.
“All these factors come into play in terms of us figuring out how best to make use of the capacity that we have on hand, until, of course, the A350Fs come online,” Tan says.Tune in to this week’s “Cargo Facts Connect” to hear an edited extract of the discussion with Tan.
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Airbus is making steady progress in the industrialization phase of its new A350F program as components come together and test rigs take shape.
“We’re sorting through and finalizing the processes for assembly ready for next year, into final assembly and then first flight,” Airbus Head of Freighter Marketing Crawford Hamilton tells Cargo Facts in this week’s episode of the “Cargo Facts Connect” podcast. “In the meantime, we test and test and test because one of our big targets is to make sure that we have a mature aircraft at EIS.”
Airbus ended 2023 with firm orders for fifty A350Fs thanks to deals in December with Cathay Pacific for at least six and with Turkish Airlines for at least five.
The European planemaker added five A350Fs to its backlog in March after receiving an order from Taiwan-based Starlux Airlines.
“It shows what we’re doing is right and everything I’ve talked about is really coming to fruition and people are starting to see,” Hamilton said.
Airbus and its suppliers are preparing full-scale mockups of components, including the cargo-loading system and the cargo door. Production of the prototype’s fuselage began in 2023.
The first delivery and entry into service of the A350F will take place in 2026.
Tune in to this week’s “Cargo Facts Connect” to hear more on Airbus freighters, and get a sneak peek at next week’s Cargo Facts Asia event in Singapore with Titan Aviation Leasing Chief Commercial Officer Eamonn Forbes and World Star Aviation Chief Marketing Officer Nuno Leal. -
Dubai-based Emirates is due to start taking delivery of some of its five new 777Fs this year as part of a 2022 order with Boeing.
The carrier has returned four 777Fs to lessor DAE Capital over the past five years but also added two new units in May and June 2023, bringing its fleet back to eleven 777Fs.Further growth is on the way, with Emirates planning to convert ten 777-300ERs with IAI.
Though 2023 may have been a lackluster year for freighter operators, Emirates is more optimistic about 2024.
“The year has started up very strongly; we’re seeing exceptionally high tonnages for this time of the year for traditional, past years, I would say,” Nadeem Sultan, senior vice president of freighters and cargo planning at Emirates, tells Cargo Facts in this week’s episode of the “Cargo Facts Connect” podcast, recorded at the IATA World Cargo Symposium 2024 in Hong Kong this month. “So, from that perspective, it looks like a promising year for airfreight overall. We think we probably should expect a growth from 1 to 2% overall in the airfreight market this year.”
Emirates’ expansion and development are twofold, involving more than the fleet.
“There’s a lot of aircraft capacity coming in — both passenger as well as freighter — over the coming couple of years,” Sultan said. “But equally, we’re looking at really investing into the future for our air cargo infrastructure in Dubai, in terms of a new air cargo terminal and expanding our current capabilities. And that’s something that’s going to be a key component as well of Emirates SkyCargo’s future growth strategy.”
Tune in to this week’s podcast to hear more on Emirates as Sultan speaks with Cargo Facts Editor Jeff Lee in Hong Kong. -
ST Engineering last week took redelivery of the first EFW A321-200P2F conversion to be carried out at the Haite Tianjin facility.
Freighter conversions are not new to Haite Tianjin, but the company plans to increase its activity in the segment.
“This business is a very strategic decision because we need to have a mixture of work and the type of work is important to us,” General Manager Ivan Chin tells Cargo Facts in this week’s episode of the “Cargo Facts Connect” podcast, recorded at the redelivery ceremony in Tianjin.
Haite Tianjin has provided touch labor for IAI’s 737NG conversions since 2019 and has completed thirteen 737-800BDSFs and -700BDSFs to date.
The company last week also broke ground for a third hangar offering three additional narrowbody bays for conversions and other MRO work. The hangar is expected to be completed in the second half of 2025.
“[Doing conversions] actually has a lot of this repeatable work that we are looking at,” Chin said. “After the third-phase expansion, that is exactly where we are looking at expansion to cater for the growth, especially in the A320 and A321 cargo conversion market.”
Tune in to this week’s podcast to hear more on Haite as Chin speaks with Cargo Facts Editor Jeff Lee in Tianjin. -
The United States will soon get a new freighter operator when Miami-based 7Air Cargo gains certification.
The startup airline has agreed to lease two 2006-vintage 737-800SFs from Aircastle as its first freighters. The first of those (34799, ex-SpiceJet) finished receiving its new paint job in Goodyear, Ariz., (GYR) this week.
7Air Cargo expects to start flying proving runs in March and hopes to obtain its AOC in April.
“We’re on track as of today,” Chief Executive Amos Rodriguez says in this week’s episode of the “Cargo Facts Connect” podcast.
7Air is part of Xtreme Holdings and is in discussions with cargo customers. It will not only operate charters but will also move its own freight, Rodriguez said.
With the first two 737-800SFs secured, 7Air is considering adding more 737-800 freighters and is even looking at widebodies.
“As far as the first route, we are concentrating on Central America,” Vice President of Commercial Operations Carlos Cock says. “There’ll be several destinations within Central America.”
Tune in to this week’s podcast to hear more on 7Air Cargo’s plans as Rodriguez and Cock speak with Cargo Facts Editor Jeff Lee. -
Beatrice Peters and David Thimm, vice presidents of new business at Backbone Freighter Leasing, part of the Dr. Peters Group, joined Cargo Facts Editor Jeff Lee live from Cargo Facts EMEA 2024 in Amsterdam earlier this week.
Germany-based Backbone Freighter Leasing is the launch customer of the Kansas Modification Center 777-300ERCF conversion program, with a firm order for three slots and options for seven more.
“It’s a very promising and sensible way to use our feedstock,” Peters says in this week’s episode of the “Cargo Facts Connect” podcast. “And we think that the 777-300ER is the future of the widebody segment.”
The 2008-vintage prototype (37704, ex-Emirates) arrived in Wichita, Kansas, (IAB) in September 2021 and will soon undergo structural modification at Wichita State University’s National Institute for Aviation Research (NIAR), with which KMC partnered to launch the 777-300ERCF conversion program in September 2020.
“We are convinced that they are the right people working on the product,” Thimm says.
Tune in to hear from Peters and Thimm as they speak with Lee in Amsterdam.
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The freighter aircraft industry will gather Feb. 5-7 in Amsterdam for Cargo Facts EMEA 2024 to discuss the latest developments in the space. Ahead of the event, several industry leaders join this week’s episode of the “Cargo Facts Connect” podcast.
Joining Cargo Facts Editor Jeff Lee on the podcast are:
George Seturidze, chief executive of Camex Airlines;Michael Hamelink, chief financial officer of Chisholm Enterprises and chief executive of Texel Air;Cristian Sutter, chief executive of Avensis Aviation; andOr Zak, chief commercial officer for Challenge Group.Seturidze will join a narrowbody freighter panel on Tuesday, Feb. 6, during the conference. Camex obtained its Georgian AOC in August 2022 and operates a 737-800BCF and a 737-800SF. The company also created a Slovenian offshoot, Camex Adria Airlines, which received its AOC in December.
“I think 2024 will show us a lot of things regarding how the market will be improved for the future,” Seturidze says in this week’s podcast.
Hamelink will also join the Feb. 6 panel discussion. Bahrain-based Texel, which flies two 737-800BCFs, two 737-700FCs and one 737-300F, launched and placed three 737-800BCFs with new subsidiary Texel Air Australasia in 2023.
Wednesday, Feb. 7, will begin with a panel on widebody freighters featuring speakers including Avensis’ Sutter and Challenge Group’s Zak.Avensis announced its A340 freighter conversion in 2023 with launch customer Universal Sky Courier and is targeting a 2026 certification for this next step in its range of cargo modifications.
Challenge Group operates three airlines based in Malta, Israel and Belgium, and has taken its first of four 767-300BDSF conversions. The group will soon also send the first of four 777-300ERs for conversion with IAI.
“I think if we are looking at the signals at the moment, it seems like the market is stabilizing and hopefully we can see a bit more of what we used to in terms of the seasonality,” Zak tells Cargo Facts. -
Brazil-based Modern Logistics will soon deploy its first 737-800BCF to help grow the company’s international presence.
The 2004-vintage aircraft (33566, ex-Ryanair) arrived in October and has been undergoing certification with the Brazilian Civil Aviation Authority.
“We are in the final process with the regulator, and if everything goes well in the next three to four weeks, we expect to have the final certification by the beginning of February, before Carnival season in Brazil,” Modern Logistics Chief Executive Cristiano Koga says in this week’s episode of the “Cargo Facts Connect” podcast. “This is a very important milestone for us because we expect also the volumes to grow after the summertime vacation, which is taking place now in Brazil [until] the second half of February.”
Modern expects a second -800BCF later this year and plans to operate the two NGs alongside its Classics.
The NGs will focus more on cross-border flights, but Classics can also be used on the short hauls, Koga said.
“For example, for Uruguay and Argentina, we can fly with the Classics, but the NGS are much more effective for international flights and we’re going to dedicate that fleet primarily to the international routes and the Classics will not only be for domestic, but also charters that we have on a regular basis,” he said.
Koga, who was appointed in May 2023, said Modern has a market share of approximately 27% in Brazil but aims to have a double-digit share in other South American markets.
“We have very ambitious and aggressive plans to go overseas with our new aircraft, and to keep investing in those sectors that we believe value our value proposition,” he said.
Tune in to this week’s podcast to learn more on Modern’s plans as Koga speaks with Cargo Facts Editor Jeff Lee.
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Reliable Robotics this month announced it had performed the first flight of a remotely operated Cessna 208B without a pilot on board as the company works to certify its flight automation technology.
The Mountain View, Calif.-based company aims to achieve certification in 2025, after which it will be able to operate uncrewed flights carrying commercial cargo using the Cessna 208B.
“Our opinion is that the right way to bring these sorts of systems to market is to follow the process,” co-founder and Chief Executive Robert Rose says in this week’s episode of the “Cargo Facts Connect” podcast.
“And the process is you need to get this through the supplemental type certification work and then you need to modify your airline certificate to be able to use that STC equipment, and that’s what we’re working on. That’s what we’re planning on doing.”
Simply talking about uncrewed operations and actually going ahead with certification are very different things from an organizational, procedural and safety analysis perspective, Rose said.
“It forces some very different conversations that I think are healthy and necessary,” he said. “It also helps us build data for the FAA that they need to better understand what’s involved in operating an aircraft and UAS. Flight tests like this, I think, take it out of the academic realm — and nothing against academics — but it takes it out of the realm of theory.”
The FAA has been good to work with, contrary to a common perception that it is slow and not receptive to new technology such as uncrewed aircraft, Rose said.
“If you talk with people in the FAA, it’s just not true,” he said. “That is just not reflective of the reality; the FAA wants to innovate and people choose that job. They choose that career path because they want to be at the tip of the spear on new technology.”
Tune in to this week’s podcast to learn more about Reliable Robotics’ testing and vision as Rose speaks with Cargo Facts Editor Jeff Lee. -
Pacific Air Cargo has been heavily involved in the relief efforts in Maui as the island recovers from the destructive wildfires in August due to a long-term ACMI arrangement with Kalitta Air for the carrier’s 747-400F capacity between Los Angeles and Honolulu.
At the same time, the company has been exploring other avenues of growing its business.
“We have traditionally always focused on Asia eastbound interline agreements and those agreements and partnerships are still valuable to our success,” Pacific Air Cargo Chief Executive Tanja Janfruechte says in this week’s episode of the “Cargo Facts Connect” podcast.
“But this year, we’re focusing on trying to align with other airlines, not necessarily out of Asia, but Europe and Canada as well. And we’re looking into Mexico — really just trying to see if we can provide some more tail-to-tail options in and out of Hawaii.”
In addition to Kalitta Air’s 747s, Pacific Air Cargo also works with Asia Pacific Airlines and wet leases that carrier’s 757-200Fs. But even with an expanding network, Pacific Air Cargo is unlikely to operate its own freighters, at least for now.
“We’re always open to ideas, but the ACMI model works so well for us that right now, at least in the near future, we’re not looking to move away from that kind of model,” Janfruechte said.
Tune in to this week’s podcast to learn more about Pacific Air Cargo’s plans as Janfruechte speaks with Cargo Facts Editor Jeff Lee. -
In this week’s episode of the “Cargo Facts Connect” podcast, hear from Astral Aviation founder and Chief Executive Sanjeev Gadhia at the Dubai Airshow.
Astral’s own-operated and wet-leased freighters fly within, into and out of Africa. The performance of the trade lanes has been mixed this year, Gadhia said.
“The intra-Africa market, I would say, compared to 2022 has actually grown by about 5%,” he said. “But next year, we’re expecting double-digit growth. And we’re very confident about the long-term growth of the intra-Africa market. Having said that, the market to and from Africa has not done very well, unfortunately. Some of the key markets, such as South Africa, have actually experienced overcapacity, which has resulted in lower yields.”
Astral began flying its first 767-200BDSF in early 2021. That aircraft is on lease from CAM, from which Astral also expects to lease its first 767-300F in 2024.
“The 767-300 is a very important part of our strategic fleet expansion,” Gadhia said. “And it will actually enable us to also look at operating into new markets which the 767-200 is not able to.”
Meanwhile, Astral is on track to receive its first E190F conversion in 2024 and is considering 777-300ER freighters.
Tune in to this week’s podcast as Cargo Facts Editor Jeff Lee talks to Gadhia at the Dubai Airshow.
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In this episode, hear from three speakers who will join us next week at Cargo Facts Symposium in San Diego.
Ed Wegel, chairman and chief executive of Global Crossing Airlines, will share in a fireside chat the story of certifying a new airline during the pandemic and its cargo ambitions as the first operator of A321 freighters in the Americas.
“We’re very bullish on the narrowbody market and we’ve got a lot of airplanes coming, so we feel pretty good about our position and the future,” Wegel said.
Reliable Robotics’ Chief Business Officer Myles Goeller will present on the latest in the development of alternative aircraft and the implementation of flight automation technology in the cargo segment.
“It is very clear to us that the market that is going to adopt this technology first at real scale is going to be the cargo market, starting with small freighter aircraft but over time taking that same technology to large aircraft that carry the bulk of goods today,” Goeller said.
Meanwhile, Tim Komberec, chairman and CEO of Empire Airlines, will discuss the growing regional freighter market as his company takes on more ATR 72-600Fs and Cessna 408 SkyCouriers from FedEx.
“There’s a lot of what I call trimming going on right now as the market kind of normalizes, but I think on the regional side, what we’re seeing is the demand for our services with our customers still strong,” Komberec said.
Tune in to this week’s podcast as Cargo Facts Editor Jeff Lee looks ahead at next week’s CFS 2023 with Wegel, Goeller and Komberec.
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In this episode, hear from Boon Keng Tan, senior vice president, general manager and head of aircraft and freighter leasing at ST Engineering.
In 2021, ST set up Juniper Aviation Investments, a joint venture with the Singaporean state-owned investment company Temasek, to focus on developing a freighter leasing portfolio that specializes in narrowbodies.
Juniper has delivered four A321-200Fs and one A320-200F to date, with more in the pipeline. All were converted with EFW, in which ST holds a majority share.
“EFW conversion slots are fully booked until 2026, and that speaks for itself when it comes to demand for this platform,” Tan said. “So, it’s very active and still healthy today. At the modification sites we have, the conversion work is still ongoing nose to tail, so it’s busy out there.”
Juniper provided the prototype aircraft for EFW’s conversion line at the VT San Antonio Aerospace facility and, more recently, the Haite facility in Tianjin, China (TSN), which cut metal last month.
Tune in to this week’s podcast as Cargo Facts Editor Jeff Lee speaks with Tan on A320 and A321 freighters. -
In this episode, hear from Mikey McBryan, general manager of Buffalo Airways, which is on the cusp of launching commercial service with its first 737-300 freighter in Canada.
The 1986-vintage 737-300BDSF (23512, ex-Swiftair) that Buffalo purchased in 2022 had been in storage in the U.K. since 2017; it finally arrived in Canada last month after two years of maintenance and overhaul.
Buffalo had to install additional avionics upgrades on the aircraft once it landed in Edmonton (YEG), but the end is in sight. The carrier will soon fly unit 23512 between YEG and Yellowknife (YZF) for its affiliate courier company, Buffalo Air Express.
“I would do it all again. I could do it way more efficiently, but I wouldn’t change anything,” McBryan said. “I had so much fun and that what’s it all about at the end. Any restoration project, home reno, school — anything — it’s never about the graduation. It’s about the whole journey and I’m still in the midst of it so I know I can appreciate it.”
McBryan has hinted at plans to add more 737 Classics.
Tune in to this week’s podcast as Cargo Facts Editor Jeff Lee discusses these topics and more with McBryan. -
In this episode, hear from Luis Ramos, founder and chief executive of Awesome Cargo.
The Mexico-based startup is in the certification process and nearing its AOC. It has leased two 2011-vintage A330-200s from Air Lease Corp. and plans to operate them in the Medius Class E cargo configuration from U.K.-based Avensis Aviation ahead of full-freighter conversion.
Awesome Cargo registered its first A330-200 (1218, ex-Alitalia) in Mexico in June. The carrier intends to introduce 737-800 freighters in the months ahead, Ramos said.
Ramos is also CEO of aviation services company Aerocharter, which has been helping freighter airlines transition to Mexico City’s new Felipe Angeles International Airport (NLU) and handles most cargo operations there.
Mexican President Andres Manuel Lopez Obrador announced last week that the FAA will soon restore Mexico to Category 1 status, allowing Mexican carriers to launch new routes to the United States again. Mexico was downgraded to Category 2 in May 2021.
“We’re very thankful for the Mexican government and the [Federal Civil Aviation Agency] for moving as quickly as they have in the midst of everything that’s going on with the FAA and getting back to Category 1,” Ramos said. “We’re very thankful and we finally see the light at the end of the tunnel.”
Tune in to this week’s podcast as Cargo Facts Editor Jeff Lee discusses these topics and more with Ramos. -
In this episode, hear from Bob Weiss, director of 737 and 767 BCFs at Boeing Global Services.
Boeing continues to diversify its conversion locations, with the Joramco facility in Jordan announcing this week that it will host a conversion line for the 737-800BCF program, joining other upcoming sites like KF Aerospace in Canada and GMR Aero Technic in India.
After redelivering its 100th 737-800BCF last year, Boeing has also hit other milestones on its narrowbody conversion program in 2023, including the twentieth at GAMECO and the seventieth at STAECO.
Meanwhile, Boeing also marked the fifteenth anniversary of its 767-300BCF program this year.Tune in to this week’s podcast as Cargo Facts Editor Jeff Lee discusses these topics and more with Weiss, who will speak on a panel covering the freighter conversion market at Cargo Facts Symposium in October.
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In this episode, hear from Cristian Sutter, chief executive of U.K.-based Avensis Aviation, which offers a range of cargo modifications for Airbus widebodies.
Avensis most recently launched a full-freighter conversion for the A340 with German startup Universal Sky Carrier, a project that is entering an advanced stage of development, Sutter said.
In the meantime, Avensis has obtained certification for its reversible Class E modification on the A330-200 and -300.
Tune in as Cargo Facts Editor Jeff Lee speaks with Sutter about these projects and more in this week’s podcast.
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In this episode, hear from Carlos Cock, chief executive of Miami-based Xtreme Aviation, which celebrated its tenth anniversary in the city last week.
Xtreme expanded into the freighter leasing segment when it acquired its first 737-300F in 2022 and has worked with carriers in Latin America, including Colombia-based Aerosucre and Dominican Republic-based Sky High.
The company last year also completed its first PEMCO 737-300F conversion at its facility in Opa-Locka (OPF) and is looking to further develop its freighter conversion capability.
Additionally, Cock told Cargo Facts that Xtreme recently acquired K&J Aviation, a Miami-based engine maintenance company.
“We’ve seen the market necessity for additional engine shops, and it’s just the right fit to everything else that we’re doing now,” Cock said. “So, we went ahead and made this acquisition, and we’re going to be growing the company in the near future.”
Tune in as Cargo Facts Editor Jeff Lee speaks to Cock about all this and more in this week’s podcast.
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