Emirates to buy 777 freighters in deal with Boeing

Two transactions on Tuesday will add to the global supply of large cargo jets as airlines continue to invest in fleets to meet projections for growth in air shipping.

Emirates, the fourth-largest air cargo carrier by volume, announced that it will expand its dedicated freighter fleet with the purchase of five 777 freighters from Boeing (NYSE: BA). 

The deal is valued at more than $1.7 billion at list prices, but Emirates is expected to get a discount for the multiunit purchase. No timetable was given for when the planes would be delivered to Emirates, but the planes are likely to be completed during the next couple of years based on Boeing’s track record.

The new aircraft will add to the 11 777 freighters already operated by Emirates SkyCargo, the airlines’ all-cargo division, bringing the fleet to 16 aircraft. At last November’s Dubai Airshow, Emirates announced a $1 billion investment to expand its air cargo capacity, including two new 777 freighters that joined Emirates’ fleet this year.

“This order reflects Emirates’ confidence in air freight demand and overall aviation sector growth,” Sheikh Ahmed bin Saeed Al Maktoum, Emirates’ chairman and CEO, said in a statement.

Emirates also operates nearly 140 passenger variants of the 777. Emirates SkyCargo manages all the cargo carried on the passenger network. 

Meanwhile, Elbe Flugzeugwerke, an Airbus joint venture that specializes in converting used passenger jets into dedicated freighters, said Aircraft Maintenance and Engineering Corp. (Ameco), a large provider of maintenance and overall services for aircraft in China, will provide modification work for A330 aircraft.

Conversions will be carried out at Ameco’s facilities in Chengdu, China, with the first induction of an A330 scheduled next year. 

EFW holds certificates to redesign both the A330-200 and A330-300 for cargo. The A330-300 can carry 69 tons, 2 tons more than the A330-200. 

EFW recently formed a partnership with Turkish Technic for A330 conversions, part of a strategic plan to expand production facilities around the world to meet demand for passenger-to-freighter conversions. EFW also produces A320/A321 converted freighters. 

Conversion activity has been extremely brisk during the past three years, but the cargo market is slowing down amid recessionary conditions in the global economy. The number of conversions is expected to slow down by mid-decade but still be above recent historical averages.

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Editor: Eric Kulisch