Boeing partners GMR to set up 737 freighter conversion facility in Hyderabad

U.S. planemaker Boeing has partnered with India’s GMR Aero Technic for setting up a facility in the Asian nation that will convert passenger aircraft into freight planes, to tap surging global demand for cargo. Boeing and GMR will start the freighter conversion line in Hyderabad.

Freight operations in India will support domestic and global demand. GMR Aero Technic is the first Boeing supplier in India that will have the capability to support future conversions of both domestic and foreign aircraft, according to a media release.

Boeing India President Salil Gupte told reporters in New Delhi that the time has come for the cargo market. “Our cooperation with GMR Aero Technic is not only a testimony of the maturation of Indian MROs in the country to support the vision of Aatmanirbhar Bharat but also supports the anticipated growth of the cargo sector in the region,” he said in the release.

Salil Gupte, president of Boeing India, said there was a demand to convert more than 1,700 passenger planes globally into freighters over the next 20 years, with about 600 coming from Asia.

The facility will add to Boeing’s USD 1 billion supply chain sourcing from India and will help support India’s ambitions to become a global cargo hub, Reuters cited Chief Strategy Officer Marc Allen. He did not give any details about when the facility will be set up or the size of the investment.

GMR Aerotechnic chief executive Ashok Gopinath says that India’s MRO sector has seen rapid growth given the expansion of India’s airline sector. Establishing a local freighter conversion capability is also in line with the country’s “Make in India” policy – a key priority of prime minister Narendra Modi.

Boeing does not state the type of aircraft to be converted, but an image of an executive signing ceremony is backdropped by a picture of a 737-800 – a type frequently converted for cargo use. Boeing also does not state when the line will start operating, or the level of investment.

Cirium fleets data indicates that there are 14 main deck freighters in service in India. The main freighter operator is Blue Dart Aviation with six 757-200PCFs. SpiceJet operates three 737-700BDSFs, Quikjet two 737-800BCFs, IndiGo two A321P2Fs, and Pradhaan Air Express a single A320P2F.

According to Boeing’s Commercial Market Outlook, India’s air cargo growth is expected to average 6.3 per cent annually, driven by the country’s manufacturing and e-commerce sectors, including its Make in India initiative. Boeing forecasts demand for more than 75 freighters, including production and converted freighters.

Boeing, through its partners, already has a significant presence in Hyderabad. In February this year, Tata Boeing Aerospace Limited (TBAL) shipped the first vertical fin structure for the Boeing 737 aircraft from its facility in Hyderabad. The vertical fin was meant for the Boeing manufacturing facility in Renton, WA, for integration into the final Boeing 737 aircraft.

In February, Boeing said that it expects India’s new and converted freighter market to grow to 80 aircraft by 2041. The aviation behemoth has stepped up its focus on India. In February it announced plans to invest USD 24 billion to set up a logistics centre for airplane parts. Air India also placed a record order for about 500 jets, worth more than USD 100 billion at list prices, with both Boeing and Airbus.

-B