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Boeing adds capacity for 767 freighter conversions in China

Strong air cargo demand drives investment by partner, GAMECO

Boeing will turn older 737 passenger jets into freighters at a maintenance facility in China. Shown here is a 767-300 converted freighter controlled by Amazon Air. (Photo: Jim Allen/FreightWaves)

Boeing Co. on Tuesday announced it will add production lines in China to expand capacity for converting 767-300 passenger planes to freighters to help meet strong demand from cargo airlines and express delivery operators.

Guangzhou Aircraft Maintenance Engineering (GAMECO) signed an agreement to open two new conversion lines for the 767 next year.

The Boeing 767 converted freighter is a midsize widebody aircraft popular with express carriers for regional and medium-haul international flights because of its versatility and lower operating cost compared to other aircraft in its age class. It also has a high degree of commonality with the Boeing production version in terms of loading, maintenance and ground support equipment. And since the two planes have the same type of operating certificate, they can share the same pool of pilots, simplifying scheduling.

GAMECO, a joint venture between China Southern Airlines Co.  and Hutchison Whampoa (China) Ltd. from Hong Kong, is currently licensed by Boeing to install its conversion kits for the 737-900 narrowbody aircraft. Earlier this year, the aircraft maintenance company announced plans to add a third 737-800 production line.

Boeing (NYSE: BA) also has conversion lines for the 767-300 converted freighter at ST Engineering’s facility in Singapore.

Israel Aircraft Industries is a major producer of 767 conversions but has its own design and is not part of Boeing’s program.

“GAMECO has demonstrated excellent execution on the 737-800BCF program. We know it will bring the same expertise and proven capability to help deliver our medium widebody freighter conversions to our global customers,” Peter Gao, vice president of Boeing commercial sales and marketing for China, said in a statement.

Boeing forecasts 1,720 freighter conversions will be needed over the next 20 years. Of those, 520 will be widebody conversions, with Asia carriers accounting for more than 40% of that demand. The 767-300 converted freighter has more than 95 orders and commitments. LATAM Airlines this year placed orders to have 10 of its own aircraft converted during the next three years.

Air cargo operators are thirsty for more aircraft because of the spike in shipping volumes since the pandemic and the reduction of passenger flights, which also carry freight and mail. Analysts project air cargo to grow at a compound annual rate of 4% to 6%. E-commerce, which grew 44% to $4.2 trillion in the U.S. last year and 28% globally, is providing a major tailwind for air cargo growth and the need for more aircraft. E-commerce represents less than a fifth of total air cargo volume, but that number is expected to rapidly increase, according to the International Air Transport Association.

The 767-300 has a payload of 51.6 metric tons. 

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.


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Eric Kulisch

Eric is the Supply Chain and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals from the American Society of Business Publication Editors for government coverage and news analysis, and was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. Eric is based in Portland, Oregon. He can be reached for comments and tips at [email protected]