Israel Aerospace Industries (IAI) is in discussions with Hindustan Aeronautics Ltd (HAL) and another Indian aviation company to establish a passenger-to-freighter (P2F) conversion facility in India.
The Israeli firm aims to have the facility operational within two years and sees potential partnerships with IndiGo and Air India for converting wide-body aircraft into cargo planes.
IAI's EVP (aviation group), Shmuel Kuzi, highlighted the growing demand for P2F conversions, particularly for Boeing 777s, which can carry 100 tons of cargo. This new facility is expected to be a game-changer for the freighter industry.
IAI is also exploring the possibility of setting up an engine maintenance, repair, and overhaul (MRO) facility in India, given the increasing demand from Indian carriers like IndiGo, Air India, and Akasa, who have over 1,200 aircraft on order.
The investment for the P2F conversion facility is estimated to be a few million dollars, with a focus on training the local workforce through on-the-job training at IAI's existing sites. Each hangar at the facility is expected to convert 2.1 planes annually, with an average conversion cost of $38 million per wide-body aircraft.
IAI sees immense potential in India for both domestic and global customers seeking wide-body conversions and engine MRO services. The company aims to finalize the location and partnership for the facility by the end of the year, aiming for operational status by 2026.
