In a relatively short period of time Singapore’s ST Aerospace (ST Aero) has become a major player in the aircraft modification business, and now counts engineering and development work, including modifications as contributing nearly a third of its revenue. Singapore-based ST Aero first commenced the B757-200 passenger-to-freighter (PTF) conversionprogramme just over three years ago.
In 2004 Boeing licensed both ST Aero and Israel Aerospace Industries (IAI) to jointly develop the Supplementary Type Certificate (STC) for the B757-200.
At the end of 2006, IAI decided it would no longer continue to participate in the programme and ST Aero went on to manage the programme and the engineering development of the STC, which it had been responsible for from the onset.
Since being licensed by Boeing in 2004, ST Aerospace (through its subsidiary, ST Mobile Aerospace Engineering, Inc (MAE), which is also the applicant and owner of the STC), has gone on solely to develop, undertake and manage the Royal New Zealand Air Force (RNZAF) multi-role configuration conversion programme and the 15-pallet STC programme.
The Singapore company is currently working on the conversion of two of RNZAF’s 757-200 aircraft. The contract with RNZAF is worth a total of US$38 million, and the first aircraft is expected to be redelivered in the fourth quarter 2007 while the second aircraft is expected to be inducted in late 2007 and redelivered in March 2008.
Apart from cargo conversion, ST Aero is also performing an avionics upgrade programme amongst other requirements.
ST Aero wins more FedEx contracts
ST Aero’s latest conversion contract was awarded by FedEx Express for its 87 Boeing 757-200 aircraft in January 2007. The work will be done in three blocks stretching over seven years, in order to phase in the aircraft subject to their availability and FedEx’s own planning schedule. For the initial delivery schedule, one aircraft is slated to be redelivered in 2007, 13 in 2008 and 20 aircraft in 2009.
In addition to the B757, ST Aerospace also undertakes MD-11 PTF conversions. As a centre of excellence for Boeing, ST Aerospace has to-date 60 firm MD-11 conversion orders for UPS, FedEx Express and other customers. As at October 2007, ST Aerospace has converted and redelivered50 MD-11 aircraft.
Contract for 767 conversions
More recently, ST Aero won a contract from Boeing to perform PTF conversions under the 767-300 Boeing Converted Freighter (BCF) programme. ST Aero will perform aircraft maintenance and the PTF conversions with data provided by Boeing.
“Boeing believes that there is a good market potential for the 767-300 and we agree with this assessment,” said ST Aerospace president, Tay Kok Khiang. “Boeing has previously estimated that about 250 out of the 600 767-300 passenger planes would have been in service for 15 years or more, making them excellent candidates for conversion,”he added.
ST Aero will induct the first aircraft from All Nippon Airways (ANA), Boeing’s launch customer for this programme, at its SASCO facility in Singapore for conversion in October 2007, with the prototype expected for redelivery in June 2008, upon US Federal Aviation Administration (FAA) certification. But not content to sit still, ST Aero is moving on to what it sees as the next conversion type that will be in demand:The B757.
Bright future for 757 conversions Citing Boeing’s Current Market Outlook for 2007, ST Aero notes that the narrow body freighter market (of which the 757-200 is a part) is set to see a relatively strong period of activity. In particular the 737 and 757 platforms areseen as being the most dynamic.
“Boeing believes that there is a bright future for 757 conversions,” said Tay, adding that the 757 is an attractive proposition for conversions because its larger payload allows operators to increase capacity without moving to more capital intensive wide bodies.
“Coupled with the fact that a lot of the 757s are coming to the end of their life as passenger aircraft, the 757 is an affordable option for PTF conversion,” said Tay.
“The trend for PTF conversion is therefore expected to continue with a prevalence of such aircraft being bought and converted to freighters. In anticipation of this trend, ST Aerospace embarked on its 757 PTF programme and remains a proven PTF centre of excellence, providing quality and reliable conversions, often ahead of schedule,” he added.
With a good order book for conversions, ST Aerospace expects PTF conversions to remain a key growth area.