Price is clearly an issue in this business. The market for a converted freighter only develops when the modified aircraft reaches a price point about 25 percent to 33 percent of the price of a new freighter of similar size. The lack of availability of certain popular aircraft in the used market and the high prices for conversion clearly are impeding the launch of some of conversion programs. Finally, it is important to mention the potential impact of more stringent noise regulations that are under discussion. However, history has shown that there will be pressure to mandate the retirement of older types that do not meet the new regulations.
Cargo airlines rely on converted aircraft.
As such their fleets typically contain a large percentage of older models, and it follows that cargo airlines will be hardest hit by any noise-mandated phase out scheme. Inc. All rights reserved.