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Feature: Is it best to have a one-stop shop?
11 March 2010
Manufacturers are competing with non-manufacturer conversion houses for passenger-to-freighter conversions. JoAnn DeLuna finds out the advantages and disadvantages different kinds of conversion programmes have for aircraft investors.
Read more:
OEM
non-OEM
conversion house
passenger-to-freighter conversion
Precision Conversions
Boeing
DVB Bank
Erste Bank
Ascend
Passenger-to-freighter conversions are complicated and expensive procedures. It involves ripping out floors, replacing floor beams and frames, cutting out a big side door and installing a new cargo door. The aircraft has to be strengthened so it can withstand the heavier cargo loads.
If anything goes wrong, customers will want a conversion house with experience that takes responsibility both during and after the conversion. Customers have the option of going to an original equipment manufacturer (OEM), such as Boeing or Airbus, or going to a non-OEM conversion house. A third option is a third-party conversion house, which is licenced to perform conversions on behalf of an OEM.
Less-expensive option
Cost is typically the deciding factor in choosing a non-OEM conversion. Depending on the model, the price difference can be from 10% to 20%, which can mean a savings of several million dollars. Non-OEM conversions usually have greater flexibility...
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