ISTAT Jetrader - Autumn 2019 - 35

of systems to freighter specs and coping with future ATC
requirements (e.g., flight warning computers) - or, in case
of the A330P2F freighter, a powered cargo loading system
with intelligent logic of moving more than one container
simultaneously in the upper deck along the tail-high floor.
Ultimately, key factors determining prime candidates
for conversion are availability, cost, total flight cycles
and flight hours, weight specifications and engine type.
Furthermore, fleet commonality/sisterships are considered
by operators who require multiple aircraft, as the likelihood
of same engines, parts and standardized maintenance
procedures help to avoid multiple spare inventories or extra

personnel training. In some countries, age restrictions for the
introduction of aircraft into fleets are applied (e.g., Indonesia,
China, South Korea, Saudi Arabia, Thailand) but not yet in the
United States, Canada, Europe or Australia. While feedstock
of older aircraft might be available and cheaper in the market,
additional maintenance costs on top of the acquisition and
conversion need to be considered. On the other hand, younger
aircraft can technically be a great fit (e.g., better avionics),
but values might be too high to meet the business case of
the owner or operator looking to convert the aircraft. Thus,
an aircraft should be "not too young, not too old" to be an
ideal candidate for conversion. A general rule of thumb is to
look at an age bracket of 15-20 years where the aircraft has
accumulated enough flight cycles in order for values to decline
to a point at which the acquisition price plus any maintenance
checks performed during conversion plus conversion costs
leave the owner with an aircraft that generate profits.
Nevertheless, we have seen much younger and much older
airframes being converted. Running production lines also
implies decades of support and spare parts for the particular
airframe that support the operational setup of the aircraft in
its freighter operation. Depending on the chosen aircraft type
and its technical complexity to be converted, the conversion
will require substantial investment and not generate revenue
while being converted. However, in conjunction with the
unavoidable downtime, software upgrades, modifications or
heavy base maintenance typically accompany conversions
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ISTAT Jetrader - Autumn 2019

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