The cargo division of China Southern Airlines has signed a long-term lease agreement for three Boeing 777-300 Extended Range converted freighters, AerCap announced on Wednesday.
Less than two weeks ago, China Southern Air Logistics also ordered two classic 777 production freighters and five next-generation 777-8 cargo jets from Boeing as part of an aggressive fleet expansion and modernization program.
The AerCap news comes on the heels of Emirates last week taking delivery of its first 777-300 passenger-to-freighter conversion.
Israel Aerospace Industries, in partnership with AerCap (NYSE: AER), developed the first 777 conversion program — dubbed the Big Twin for its two engines — six years ago. For decades, used passenger jets have been modified to carry cargo on the main deck, but there were no 777 conversions until late last year, when Israel Aerospace Industries delivered the first retrofitted plane to Michigan-based Kalitta Air. IAI obtained certification for the structural design changes from the Federal Aviation Administration and Israel’s Civil Aviation Authority last August.
AerCap’s role is to provide feedstock from its portfolio to IAI and market the program to all-cargo airlines.
To date, IAI has delivered 11 Boeing 777-300 converted freighters to customers, including Israel-based Challenge Air Group. The aerospace engineering company has six additional aircraft undergoing conversion, an IAI spokesperson said.
China Southern Air Logistics, branded as China Southern Cargo, is scheduled to take delivery of its first converted 777-300 in October 2027, with the second and third aircraft scheduled for delivery in the first half of 2028, AerCap said in a news release.
China Southern Cargo plans to use the converted cargo jets on intercontinental routes. Widebody freighters are in high demand because cross-border trade continues to grow and a significant portion of the global fleet is reaching retirement age.
The state-owned airline ranks in the top 10 carriers in the world by cargo traffic, according to the International Air Transport Association. China Southern Cargo operates 12 self-owned Boeing 777-200 freighters and two Boeing 747-400 freighters. It also manages cargo carried by contract carriers under dedicated time-charter agreements and cargo in the belly hold of the parent company’s passenger planes. Its cargo hubs are located in Shanghai and Guangzhou and its international network extends to Amsterdam; London (Stansted airport); Frankfurt, Germany; Los Angeles; Chicago;, and Ho Chi Minh City and Hanoi, Vietnam.
Last month, China Southern Cargo and FedEx Corp. agreed to work on finding ways to cooperate on cargo logistics.
The 777-300 converted freighter offers 110 tons of payload capacity and more than 28,600 cubic feet of volume, representing a 25% increase in cargo volume over the Boeing 777-200 production freighter. At 47 pallet positions, the converted aircraft also accommodates 10 additional pallet positions compared to the 777-200, making it well suited for transporting less-dense cargo such as e-commerce goods, which currently constitute about 20% of global air cargo tonnage.
In addition to removing seats and adding large cargo doors to accommodate pallets, the conversion process involves extensive modifications to the fuselage, floor structure, loading systems, avionics and other systems to meet the demands of cargo transport.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Write to Eric Kulisch at ekulisch@freightwaves.com.
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