US CONGLOMERATE, Air Transport Services Group (ATSG), will convert vietnam Airlines' used passenger planes into cargo jets as it creates a freighter division, reports New York's FreightWaves.
The deal is another example of passenger airlines moving more aggressively to take advantage of cargo opportunities triggered by the pandemic. And it reinforces how ATSG, the largest lessor of freighter aircraft, is rapidly expanding its customer base beyond American shores due to demand from express delivery providers with strong e-commerce business.
Vietnam Airlines will remove two Airbus A321 narrowbody jets from its passenger fleet and sell them to Nasdaq-listed ATSG, which will send them to a specialty facility for conversion into pure freighters capable of carrying large containers on the main deck. Once converted, ATSG will lease the planes back to Vietnam Airlines, said CEO Rich Corrado. The sale-leaseback arrangement is similar to one last year between Air Canada and ATSG's leasing arm, Cargo Aircraft Management.
Air Canada is also building an all-cargo airline from scratch, initially using eight Boeing 767 medium widebody jets it retired from passenger service. CAM bought the first two aircraft, outsourced the retrofit work to Israel Aircraft Industries and is leasing the planes back to Air Canada. Those 767 converted freighters entered service in the past eight months.
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The deal is another example of passenger airlines moving more aggressively to take advantage of cargo opportunities triggered by the pandemic. And it reinforces how ATSG, the largest lessor of freighter aircraft, is rapidly expanding its customer base beyond American shores due to demand from express delivery providers with strong e-commerce business.
Vietnam Airlines will remove two Airbus A321 narrowbody jets from its passenger fleet and sell them to Nasdaq-listed ATSG, which will send them to a specialty facility for conversion into pure freighters capable of carrying large containers on the main deck. Once converted, ATSG will lease the planes back to Vietnam Airlines, said CEO Rich Corrado. The sale-leaseback arrangement is similar to one last year between Air Canada and ATSG's leasing arm, Cargo Aircraft Management.
Air Canada is also building an all-cargo airline from scratch, initially using eight Boeing 767 medium widebody jets it retired from passenger service. CAM bought the first two aircraft, outsourced the retrofit work to Israel Aircraft Industries and is leasing the planes back to Air Canada. Those 767 converted freighters entered service in the past eight months.
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