Aircraft Orders & Deliveries
FedEx Adds First Converted ATR 72-600 Freighter to Fleet
FedEx modernizes regional cargo ops with fuel-efficient converted ATR 72-600 freighter offering 40% lower fuel use and 30% reduced CO2 emissions.
FedEx Acquires the World’s First Converted ATR 72-600 Freighter
In a significant move for the regional air cargo industry, FedEx Express has committed to purchasing the world’s first passenger-to-freighter (P2F) converted ATR 72-600 aircraft. The aircraft, originally designed for passenger service, has undergone a comprehensive conversion to meet the specific demands of freight logistics. This initiative, led by ACIA Aero Leasing and executed by Empire Aerospace, marks a strategic milestone for FedEx as it seeks to modernize its regional fleet amidst shifting market dynamics and growing e-commerce volumes.
Scheduled for delivery in December 2025, this aircraft represents FedEx’s first acquisition of a converted freighter since 2016 and its first converted ATR since 2011. The move underscores FedEx’s broader commitment to cost-efficiency, sustainability, and operational flexibility in its feeder network operations. As the largest operator of ATR freighters globally, FedEx’s adoption of this converted model could signal a wider industry shift toward P2F conversions as a viable alternative to new-build freighters.
With proprietary modifications including a large cargo door, reinforced flooring, and compatibility with standard Unit Load Devices (ULDs), the converted ATR 72-600 is tailored to the specific needs of FedEx’s regional network. This development not only enhances FedEx’s capacity but also extends the service life of existing aircraft, offering a sustainable and economical solution for short-haul cargo operations.
Technical Innovations in the ATR 72-600 Conversion
The conversion of the ATR 72-600 from a passenger aircraft to a freighter involves extensive structural and systems modifications. ACIA Aero Leasing launched this speculative program in 2024, with Empire Aerospace, a sister company of Empire Airlines, handling the physical transformation. The process, which takes between four to seven months, includes the installation of a 3.45×1.95 meter forward large cargo door, a rear flip door, and a reinforced cargo floor capable of supporting a 9.2-tonne payload.
Additional enhancements include the integration of vertical restraint nets for bulk cargo, lateral track systems for containerized freight, and Class E fireproofing for the cargo compartment. These features ensure the aircraft is compliant with regulatory requirements and optimized for FedEx’s high-frequency, short-haul operations. The aircraft is also designed to accommodate up to seven LD3 containers or five 88×108-inch pallets, aligning with industry-standard cargo handling systems.
One of the standout features of this conversion is its cold-weather capability. Modified engine bleed air systems allow for reliable performance in temperatures as low as -40°C, making the aircraft suitable for operations in extreme environments such as Alaska and Northern Canada. Updated avionics, including enhanced ground proximity warning systems and optimized weight-and-balance software, further tailor the aircraft for efficient cargo operations.
“FedEx’s selection of our converted 72-600LCD reflects their demand for next-generation regional freighters with enhanced capabilities.”, Mark Dunnachie, SVP Commercial, ACIA Aero Leasing
FedEx’s Strategic Fleet Modernization
FedEx’s decision to incorporate a converted ATR 72-600 into its fleet is part of a broader strategy to modernize and optimize its regional aircraft operations. The company currently operates the largest ATR freighter fleet in the world, consisting of 24 factory-built ATR 72-600Fs, 19 ATR 72-200s, and 16 ATR 42s. These aircraft are primarily used in feeder networks across North America and Europe, operated by regional partners such as Empire Airlines and ASL Airlines Ireland.
The converted ATR 72-600 will replace older ATR 72-200 models, which are less fuel-efficient and lack modern cargo capabilities. This transition supports FedEx’s ongoing efforts to align capacity with evolving demand patterns, particularly in the wake of the COVID-19 pandemic, which reshaped global logistics and accelerated the growth of e-commerce. The aircraft’s 900-nautical-mile range and ability to operate from short runways make it ideal for serving smaller markets that are not economically viable for larger jets.
Financially, the conversion offers significant advantages. Compared to new-build freighters, the converted ATR 72-600 costs approximately 60–70% less and extends the airframe’s service life by 15–20 years. With fuel consumption 40% lower per ton-mile than comparable regional jets, the aircraft provides an estimated $450,000 in annual fuel savings per unit, enhancing FedEx’s cost-efficiency and environmental sustainability.
The Growing Passenger-to-Freighter Market
The global market for passenger-to-freighter conversions is experiencing rapid growth, driven by increasing e-commerce demand and the retirement of aging aircraft. According to industry analysts, the P2F market is projected to reach $6.4 billion by 2032, growing at a compound annual growth rate of 11.1%. Regional turboprops like the ATR 72 are particularly well-suited for conversion due to their robust design, high-wing configuration, and operational versatility.
In North America, express carriers such as FedEx and UPS are leading the charge in fleet modernization through conversions. The ATR platform dominates the regional P2F segment, holding a 68% market share. Regulatory agencies like the FAA and EASA have also streamlined certification processes, reducing conversion timelines and making the process more cost-effective for operators.
ACIA Aero Leasing has emerged as a key player in this space, delivering multiple ATR freighters in under two years and initiating discussions with other global operators for additional conversions. The success of FedEx’s initiative could serve as a catalyst for broader adoption of ATR 72-600 conversions across the industry.
Operational Deployment and Network Impact
Once delivered, the converted ATR 72-600 is expected to be deployed in FedEx’s Memphis or Cologne hubs, serving high-density regional routes such as Memphis-Chicago or Cologne-Amsterdam. These routes benefit from the aircraft’s quick turnaround capabilities, enabled by the rear flip door and front cargo loading system, which reduce ground time to approximately 35 minutes.
The aircraft will also support peak season operations, providing additional capacity during periods of high demand without necessitating permanent fleet expansion. Secondary markets, which previously relied on truck transport, will gain access to faster air services, improving delivery times and customer satisfaction.
From an environmental perspective, the aircraft aligns with FedEx’s goal of achieving carbon neutrality by 2040. With 30% lower CO2 emissions compared to jet-powered freighters, the ATR 72-600 conversion contributes to the company’s broader sustainability objectives while maintaining operational efficiency.
Conclusion
FedEx’s acquisition of the world’s first converted ATR 72-600 freighter represents a forward-thinking approach to fleet management and regional logistics. By leveraging the cost and operational benefits of P2F conversions, FedEx is enhancing its agility in a rapidly evolving market while maintaining its leadership in regional cargo transport.
As the air cargo industry continues to adapt to new economic realities and environmental imperatives, FedEx’s strategic investment in converted aircraft could pave the way for broader adoption of similar solutions. The successful integration of this aircraft into FedEx’s network will be closely watched by industry stakeholders, potentially setting new standards for regional air freight operations.
FAQ
What is the ATR 72-600 conversion? It is a passenger aircraft modified to carry freight, including structural changes like a large cargo door and reinforced flooring.
Why did FedEx choose a converted aircraft over a new one? Converted aircraft offer significant cost savings and faster deployment compared to new-build freighters.
Who performed the conversion for FedEx? The conversion was done by Empire Aerospace, under a program initiated by ACIA Aero Leasing.
When will the aircraft be delivered? The converted ATR 72-600 is expected to be delivered by December 2025.
How does this fit into FedEx’s sustainability goals? The aircraft emits 30% less CO2 than comparable jets, supporting FedEx’s goal of carbon neutrality by 2040.
Sources
Photo Credit: FedEx
Aircraft Orders & Deliveries
ANA Holdings Orders 8 More Embraer E190-E2 Jets, Total Hits 23
ANA Holdings expands its E190-E2 order to 23 aircraft, with IBEX Airlines set to operate the jets under an ACMI deal from FY2029.
ANA Holdings Inc. (ANA HD) has finalized an agreement with Embraer to acquire eight additional Embraer E190-E2 regional jets, bringing the Japanese aviation group’s total firm orders for the type to 23 aircraft. The transaction, announced on September 3, 2026, underpins a newly established capacity purchase agreement that will see the modern narrowbodies replace aging regional aircraft on domestic Japanese routes.
In a press release issued by Embraer, the manufacturer confirmed the order accelerates ANA HD’s regional fleet modernization strategy. The aircraft will be deployed under a comprehensive Aircraft, Crew, Maintenance, and Insurance (ACMI) partnership with Japanese regional carrier IBEX Airlines, an arrangement formally approved by the ANA HD board of directors on July 29, 2026.
Fleet modernization and the IBEX Airlines partnership
Under the terms of the ACMI agreement, All Nippon Airways (ANA) will serve as the marketing carrier, overseeing route planning and ticket sales for the regional network. IBEX Airlines will operate the flights using the newly ordered Embraer E190-E2 aircraft. The introduction of the E2 fleet will allow IBEX Airlines to retire its legacy fleet of Bombardier CRJ700 aircraft.
Deliveries of the new Embraer jets to ANA HD are scheduled to begin in 2028. The companies are targeting fiscal year 2029 for the official launch of the ACMI operations between ANA and IBEX Airlines.
ANA Holdings President and CEO Koji Shibata stated that the additional E190-E2 order accelerates the company’s efforts to build a sustainable regional aviation network in Japan. He noted the agreement underscores ANA HD’s confidence in Embraer’s technology to reduce both environmental impact and operating costs while elevating regional connectivity.
Embraer’s growing footprint in the Japanese market
The September 3 agreement builds upon ANA HD’s initial commitment to the E2 program. The company placed its first firm order for 15 E190-E2 aircraft, along with five options, on February 25, 2025. ANA HD originally selected the Embraer E190-E2 to fulfill its regional fleet requirements following the 2023 cancellation of the Mitsubishi SpaceJet program, for which ANA was the intended launch customer.
Embraer Commercial Aviation President and CEO Arjan Meijer said the manufacturer is honored by the continued confidence from ANA HD and looks forward to supporting the airline group’s growth plans.
“With its exceptional economics and fuel efficiency, the E2 will support expanded connectivity across Japan along with better comfort and space for passengers,” Meijer said.
AirPro News analysis
We view ANA HD’s decision to exercise further E190-E2 orders as a pragmatic stabilization of its regional strategy following the collapse of the domestic SpaceJet initiative. By structuring the deployment through an ACMI agreement with IBEX Airlines, ANA HD effectively outsources the operational transition while retaining network control and marketing revenue. The transition from the Bombardier CRJ700 to the E190-E2 will provide a substantial step up in capacity and fuel efficiency, aligning with broader industry trends toward upgauging regional networks with next-generation crossover narrowbodies. The timeline also provides IBEX Airlines with a clear runway to phase out its older airframes before maintenance costs on the out-of-production CRJ fleet escalate further.
Sources: Embraer
Photo Credit: Embraer
Aircraft Orders & Deliveries
Sun PhuQuoc Airways Takes Delivery of First A321neo LR
Sun PhuQuoc Airways receives Vietnam’s first A321neo LR, enabling direct long-range routes to Japan and Kazakhstan from Phu Quoc.
Sun PhuQuoc Airways has taken delivery of its first Airbus A321neo LR, marking the first time a Vietnamese carrier has owned and operated the long-range narrowbody variant.
The aircraft, registered as VN-A925, arrived in Hanoi (HAN) on September 3, 2026. In an official statement, the leisure-focused airline highlighted the aircraft’s extended range as a primary driver for its upcoming international network expansion.
Fleet expansion and route capabilities
The Airbus A321neo LR features a maximum range of 4,000 nautical miles, or approximately 7,400 kilometers. This capability allows the carrier to reach deeper into Asia and potentially Eastern Europe directly from its base in Vietnam.
According to flight tracking data from Flightradar24, the aircraft was ferried from Kuala Lumpur (KUL) to Denpasar (DPS) in late August before making its final delivery flight to Hanoi. Sun PhuQuoc Airways emphasized the strategic value of the acquisition in its announcement.
“With a range of up to 4,000 nautical miles, the A321neo LR is built to take Sun PhuQuoc Airways farther, opening the door to more destinations and more journeys beyond Vietnam,” the company stated.
Strategic shift for Vietnamese leisure travel
Backed by the Sun Group conglomerate, Sun PhuQuoc Airways operates a leisure-focused model designed to boost tourism to Phu Quoc (PQC). The airline has been rapidly expanding its fleet to support an international growth strategy.
The addition of the A321neo LR enables the airline to connect Phu Quoc to distant markets such as Japan and Kazakhstan. Operating these routes with a narrowbody aircraft reduces the financial risk compared to deploying larger, harder-to-fill widebody jets on unproven leisure routes.
AirPro News analysis
We view the acquisition of the Airbus A321neo LR as a calculated step for Sun PhuQuoc Airways to capture long-haul leisure traffic without the overhead of a widebody fleet. By utilizing the A321LR, the airline can test thinner, long-distance routes directly to Phu Quoc. This mirrors a broader global industry trend where operators leverage long-range narrowbody aircraft to bypass traditional major hubs and connect secondary leisure destinations directly to international source markets.
Sources: Sun PhuQuoc Airways
Photo Credit: Sun PhuQuoc Airways
Aircraft Orders & Deliveries
MACH Aircraft Leasing Platform Doubles to USD 3 Billion
La Caisse and SMBC Aviation Capital expand MACH to USD 3B after early deployment of initial capital, extending through December 2029.
La Caisse and SMBC Aviation Capital have doubled the size of their joint aircraft financing platform, Maple Aircraft Company Holdings Limited (MACH), to USD 3 billion, following the rapid deployment of their initial capital commitment ahead of schedule.
Announced on September 3, 2026, in Montréal and Dublin, the expansion extends the platform’s investment period through December 2029. According to a joint press release, the move underscores strong institutional appetite for aviation assets and ongoing airline demand for modern, fuel-efficient Commercial-Aircraft.
Rapid deployment and portfolio growth
Originally launched in January 2024 with a USD 1.5 billion commitment, the MACH platform was designed to provide flexible financing solutions to global Airlines. The partners deployed that initial capital faster than anticipated, prompting the decision to inject an additional USD 1.5 billion to capture emerging market opportunities.
The platform currently holds a portfolio of 21 aircraft leased to 13 airline customers across 10 global markets. The Investments strategy remains focused on acquiring new-technology aircraft that offer improved fuel efficiency, aligning with broader industry fleet renewal efforts and Sustainability targets.
Strategic partnership and market dynamics
SMBC Aviation Capital Chief Commercial Officer Barry Flannery stated that the successful deployment of MACH highlights the strength of the Partnerships and the continuing demand for flexible aircraft financing.
“Expanding the platform with our trusted partner, La Caisse, positions us to build on this momentum and continue to support our airline customers worldwide with access to modern, fuel-efficient aircraft of the types that are most in demand,” Flannery said.
Martin Longchamps, Executive Vice-President and Head of Private Equity and Private Credit at La Caisse, noted that the platform’s execution since 2024 validates the combination of specialized aviation expertise and patient long-term capital. He added that favorable market dynamics position MACH to capitalize on attractive opportunities across the leasing sector.
AirPro News analysis
We view the rapid expansion of the MACH platform as a clear indicator of the current supply-demand imbalance in the commercial aircraft market. With original equipment Manufacturers (OEMs) struggling to meet delivery targets, airlines are increasingly reliant on lessors to secure capacity. Recent industry data indicates that aviation asset sales activity has increased throughout 2026, generating strong proceeds at premiums to adjusted base values.
SMBC Aviation Capital has capitalized on this environment aggressively in 2026. The lessor recently closed a USD 2 billion senior unsecured bond offering in July and placed highly sought-after narrowbody aircraft, including Boeing 737 MAX 8s with Vietnam Airlines and Airbus A321XLRs with Air Seychelles. The willingness of institutional investors like La Caisse to double down on aviation assets suggests confidence that lease rates and aircraft valuations will remain elevated through the end of the decade.
Sources: SMBC Aviation Capital
Photo Credit: SMBC Aviation Capital
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