GE Capital Aviation Services (GECAS) said Wednesday it entered an agreement with Boeing (NYSE: BA) to convert 11 Boeing 737-800 passenger planes to all-cargo mode.
The deal includes options for Boeing to convert an additional nine 737-800s for the General Electric (NYSE: GE) subsidiary.
GECAS said its total 737-800 freighter conversion orderbook now stands at 74: 60 firm and 14 options. The orders in this latest tranche are scheduled for completion between 2022 and 2024.
Boeing has delivered 23 converted 737-800 freighters to GECAS, which leases the planes to air carriers.
The 737 converted freighter is increasingly seen by air cargo operators as a good fit for the express and e-commerce market, which demands frequent shuttle runs at airports that are close to consumers to minimize road transport. Smaller gauge-aircraft can land at smaller airports and are being used by Mesa Airlines and Sun Country to carry packages for DHL and Amazon. The 737-800 converted freighter is considered fuel efficient and can transport up to 24 tons of cargo.
GECAS has also ventured into larger aircraft conversions with the recent delivery of its first 777-300 extended-range passenger plane to Israel Aerospace Industries for conversion to all-cargo configuration.
GECAS, so far, has completed more than 80 cargo aircraft conversions. It currently has more than 100 orders and options for conversions.
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