China Southern Airlines to Lease Boeing 777-300 Converted Freighters

China Southern Cargo has committed to lease three aircraft from AerCap's all-new Boeing 777-300 passenger-to-freighter program. This marks the first order for the conversion program.

The Product

AerCap's Boeing 777-300 passenger-to-freighter conversion program converts older passenger aircraft into freighters, extending their lifespan and offering a lower-cost alternative to new freighters. The three aircraft will be converted 777-300ER (Extended Range) models.

Pricing and Availability

Pricing and lease terms were not disclosed. Deliveries are expected over the next few years.

Competition

AerCap's program competes with similar conversion programs from Boeing (Boeing Converted Freighter) and independent MRO providers. Converted freighters also compete with new-build freighters like the Boeing 777F and Airbus A350F.

Potential Impact on Boeing

For Boeing (BA), the order provides a boost to the new conversion program and signals customer confidence. For AerCap, it strengthens its position in the freighter conversion market. For China Southern, it expands its cargo fleet at lower cost.