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the business jet market is “a must” in order to increase the income
generated by the existing capabilities and to preserve the design
and manufacture capabilities built in the company along the years.
These sources added that the company prefers a programme that
will enable the full design and manufacture of a new business jet
“from scratch” but a “massive” participation in an existing or future
programme is also an option. The company source said that a new
business jet that will be designed and produced by IAI, is a key for
using the huge potential that in recent years has been underutilized.

Jetliner Conversions Key for Future
Last year, IAI decided to resume the operation of its Boeing
747-400 conversion line. The company said that recently it has
received several inquiries for B747-400 conversions. In 2017 only
two B747-400’s were converted and delivered to South Korea’s
Asiana Airlines. But according
“OUR EVALUATION POINTED TO A NEW Entering the Engine
POTENTIAL IN VIEW OF A GLOBAL NEED FOR HIGH Leasing Market
VOLUME FREIGHTER CAPACITY WHICH COINCIDES Last year IAI went into the engine leasing busi-
WITH THE LOW PRICES OF FUEL AND NO ness.” We decided to go into that business after
looking at the market” said Ido Ben Cnan, direc-
REASONABLE AVAILABILITY OF PARKED AIRCRAFT tor sales, MRO & heavy maintenance of the
IN THE “DESERT,” Noam Sharoni, the IAI’s B767 Conversion group. “All our engines are leased at this point
Manager and the demand is growing” He explains that
airlines prefer to lease engines than purchase
Noam Sharoni, the IAI’s 767 conversion manager, the evaluation them for a period of two to three years. “All our
pointed to a new potential in view of a global need for high volume engines are now on wings around the world.
freighter capacity which coincides with the low prices of fuel and When they come back, they are getting the
no reasonable availability of parked aircraft in the “desert”. Bedek, needed maintenance and put back on the shelf
now part of the new aviation group has converted 29 B747-400s to where they stay a very short time.”
BDSF (Bedek Designed Special Freighter) configuration between
2005 to 2011. In parallel, in 2017 IAI delivered 17 converted B767- The new department currently offers three
300’s which are needed in the booming E-commerce market. types of engines the most widely used engines
Another one was delivered in 2018. IAI has also converted three made by CFM and Pratt & Whitney (P&W). The
B737-700 NG aircraft and it is the only company in the world hold- aviation group official added that many small
ing a 737-700 Conversion STC. According to IAI , the conversion new airlines do not have the budgets to buy
period of a B747-400 aircraft is about 120 days, which is often a stock of engines and the leasing arrange-
used by most of the customers to set the maintenance clock to “0”, ment solves this problem. “The demand grows
by doing a ‘Heavy Check’, landing gear overhaul or to undertake also when the authorities release directives to
engine replacements and installation of avionics, such as new flat perform more frequent maintenance on cer-
panel displays in the cockpit, Satellite Communications (SATCOM), tain engines,” he adds. The IAI official says
etc. Bedek customers for cargo conversions are mainly airlines that the plan is to open leasing centers for
who own the aircraft and lessors who leased the cargo aircraft to engines in the U.S and Europe. The aviation
airline/operators for another 15-20 years of service creating reve- group has also increased its ‘On Wing Support’
nue for both sides and providing the high cargo capacity demand services. Technician teams arrive within 24
in the market. hours at an airport where an aircraft is on the
ground because of a technical malfunction “In
According to Sharoni, in parallel the group is completing the needed 99 percent of the cases, the team succeed in
work to get a Supplementary Type Certificate (STC) for the con- addressing the problem, and the aircraft was
version of 737-800 from passenger to cargo configuration. “We will put back in service,” the official adds. In 2018
get the STC in the third quarter of this year.” The IAI official said IAI signed a contract to serve as the mainte-
that the aviation group is still evaluating the potential of converting nance and overhaul center for the engines
Airbus A-330s to cargo configuration. “We are also about to make a of the Chinese HNA Group. According to the
decision on the conversion of the B777,” he says. In addition to the agreement, the engines are sent to IAI by the
main conversion facility in Israel, IAI operates a conversion facility customers and returned to China following
for 737 in Mexico, jointly with Mexicana. Another conversion facility servicing. In 2017, IAI added the International
operates in China for 737 -700. This is a joint venture with Chinese Aero Engine (IAE) V2500 engine to the list of
company Haite.Two aircraft are presently under conversion at this engines maintained and overhauled in its facil-
facility. “This facility will also convert 737-800,” Sharoni says. ities.

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