MRO & Manufacturing
IAI Completes First Boeing 777-300ER Passenger to Freighter Conversion
Israel Aerospace Industries achieves first Boeing 777-300ER passenger-to-freighter conversion with dual FAA and CAAI certification, boosting cargo capacity and efficiency.
Israel Aerospace Industries (IAI) has made a historic leap in aviation by completing the world’s first Boeing 777-300ER passenger-to-freighter (P2F) conversion. This achievement, marked by dual certification from the US Federal Aviation Administration (FAA) and the Civil Aviation Authority of Israel (CAAI), positions IAI as a global leader in large-scale aircraft conversions. The converted aircraft, the B777-300ERSF, nicknamed “The Big Twin”, boasts a payload capacity of 100 tonnes, addressing the rising demand for high-capacity freighters amid global e-commerce expansion and supply chain shifts.
The significance of this milestone extends beyond technical prowess. It offers Airlines a cost-effective alternative to purchasing new cargo aircraft and creates new opportunities for fleet modernization. As the air cargo industry faces mounting pressures from e-commerce growth and the retirement of older freighters, IAI’s achievement signals a pivotal shift in how airlines and lessors can adapt to evolving logistics needs.
This article explores the historical context, technical challenges, market dynamics, and strategic implications of IAI’s Boeing 777 conversion program, drawing on industry data, expert insights, and official statements to provide a thorough, neutral analysis.
Israel Aerospace Industries’ journey to the forefront of aircraft conversions began in the 1960s, catalyzed by international defense embargos. These restrictions forced Israel to develop its own aerospace manufacturing capabilities, resulting in indigenous fighter aircraft like the IAI Nesher and Kfir. By the 1980s, IAI’s Bedek division had evolved into a major aircraft overhaul operation, employing thousands and developing an expertise that would later underpin its P2F conversion programs.
The company’s initial foray into P2F conversions started with Boeing 747s in the 1980s, laying the groundwork for decades of innovation. IAI’s diversification into radar, missile, and unmanned aerial vehicle technologies further expanded its engineering capabilities, enabling it to tackle complex projects like the 777-300ER conversion.
Over the years, IAI’s experience with ambitious projects, including the canceled Lavi fighter program, generated advanced technologies and a culture of adaptability. This background proved crucial as the company transitioned from maintenance and overhaul to pioneering large-scale aircraft conversions.
IAI’s conversion of the Boeing 777-300ER to a freighter is a first in aviation history. The milestone was reached in September 2025 when the company received Supplemental Type Certificates from both the FAA and CAAI, validating the aircraft for commercial cargo operations. This dual certification not only attests to the technical rigor of IAI’s program but also establishes its international credibility.
Boaz Levy, President and CEO of IAI, highlighted the significance of this achievement, noting that it demonstrates the company’s technological, engineering, and operational expertise. The B777-300ERSF, or “The Big Twin,” stands out as one of the world’s largest cargo aircraft, offering a unique blend of payload capacity, volume, and operational efficiency. The conversion program, spanning over 45 years and including more than 250 successful conversions across various aircraft types, builds on IAI’s extensive track record. The project involved complex engineering, from structural modifications to rigorous testing, underscoring the company’s position as a pioneer in the field.
“IAI is a global leader in passenger-to freighter aircraft conversions, standing at the forefront of aeronautical technology and building on its extensive capabilities as Israel’s largest aerospace company.”
, Boaz Levy, President and CEO of IAI
The B777-300ERSF offers a maximum payload of 100 tonnes, positioning it among the largest freighters globally. Compared to the Boeing 777-200F production freighter, it provides a 25% increase in volume while maintaining the same ground operation footprint. This expanded capacity is particularly advantageous for handling diverse cargo, from e-commerce parcels to oversized freight.
Fuel efficiency is a key differentiator: the B777-300ERSF consumes 21% less fuel per tonne than the Boeing 747-400 freighter, translating into lower operational costs and reduced environmental impact. These improvements align with industry trends toward sustainability and cost efficiency.
The conversion process is a complex engineering feat involving major structural modifications, such as installing a new cargo door, reinforcing the fuselage, and replacing the floor structure. The program typically requires more than 200 personnel and approximately 39 months from concept to certification, reflecting the technical challenges inherent in such large-scale conversions.
The global P2F conversion market is experiencing robust growth, driven by e-commerce expansion and shifting logistics patterns. Market research projects the freighter conversions market to reach over $1.6 billion by 2034, with a compound annual growth rate of 12.55%. The broader P2F market is expected to exceed $6.4 billion by 2032, reflecting sustained demand for cost-effective cargo capacity.
E-commerce is a primary catalyst for this surge. According to Boeing, online platforms now ship more than 10,000 tonnes of goods daily, equivalent to the capacity of 100 Boeing 777 freighters. Global e-commerce revenues are projected to surpass $8 trillion by 2026, further fueling demand for high-capacity, efficient cargo aircraft.
Conversion programs offer airlines a compelling value proposition: the cost of converting a Boeing 777 is estimated to be about 20% lower than purchasing a new Cargo-Aircraft. This cost advantage, combined with operational commonality with existing fleets, makes conversions an attractive option for airlines and lessors seeking to expand or modernize their cargo operations. “The volume capabilities and greater cost efficiencies of the 777-300ERSF will give us a competitive advantage in the market.”
, Helen Chen, CEO of Fly Meta
IAI’s first-mover advantage is notable, but competition is intensifying. Mammoth Freighters and Kansas Modification Center are developing their own Boeing 777 conversion programs, targeting both the 777-200LR and 777-300ER variants. Mammoth has secured 35 firm Orders and is advancing its prototype conversions, while KMC is exploring international expansion.
Supply constraints, particularly the limited availability of suitable 777-300ER feedstock, pose challenges for all providers. Many lessors are extending leases on existing fleets, limiting the pool of aircraft available for conversion. This scarcity may benefit established players like IAI, who have already secured significant commitments.
The competitive dynamics are further shaped by airlines’ need for operational commonality and cost efficiency. Converted 777s offer over 95% parts commonality with existing fleets, reducing training and maintenance costs, a key advantage in a market where efficiency is paramount.
Achieving dual certification from the FAA and CAAI required IAI to meet stringent regulatory standards. The certification process involved comprehensive evaluation of structural modifications, safety systems, and operational procedures. This level of scrutiny is comparable to that required for new aircraft production.
Regulatory harmonization enables operators to deploy converted aircraft across multiple jurisdictions without additional certification hurdles. This streamlines operations for global cargo carriers and enhances the commercial viability of conversion programs.
IAI’s thorough approach, including collaboration with regulatory authorities and extensive testing, ensures that the B777-300ERSF meets the same safety and performance standards as factory-built freighters.
AerCap, one of the world’s largest aircraft lessors, is the launch customer for IAI’s conversion program, with a firm order for 20 aircraft and options for ten more. Kalitta Air, a major US cargo airline, is the first operator, providing operational validation for the converted freighter. Additional customers, such as Fly Meta and Japan Airlines (via a codeshare with Kalitta Air), have also committed to the program. Emirates SkyCargo has expressed interest, though technical delays have been noted. These early adopters are critical in demonstrating the aircraft’s performance and building market confidence.
The converted 777’s ability to carry more cargo than the factory-built 777F and 747-400BCF, combined with its fuel efficiency, offers a compelling value proposition for operators seeking to modernize their fleets.
“Everyone thinks converting an aircraft from passenger to freighter is a simple process, but it involves similar principles and regulatory requirements that you would face when producing a factory new build aircraft.”
, Richard Greener, former SVP at GECAS Cargo
IAI’s successful conversion and certification of the Boeing 777-300ERSF marks a pivotal advancement in the air cargo industry. The aircraft’s combination of payload capacity, fuel efficiency, and operational commonality addresses the pressing needs of airlines and logistics providers amid a rapidly evolving global market.
As e-commerce continues to drive demand for efficient cargo solutions and older freighters retire, conversion programs like IAI’s are set to play an increasingly central role in fleet modernization. The success of the B777-300ERSF could accelerate industry adoption of P2F conversions, reshape aircraft lifecycle management, and set new standards for operational efficiency in air cargo.
What makes IAI’s Boeing 777-300ERSF conversion unique? Who are the launch customers for the converted 777-300ERSF? How does the converted 777-300ERSF compare to factory-built freighters? What are the main challenges facing the conversion program?
IAI’s Pioneering Boeing 777 Freighter Conversion: A Comprehensive Analysis of the Aviation Industry’s Latest Breakthrough
Historical Context and Company Background
The Historic Boeing 777 Conversion Achievement
Technical Specifications and Operational Capabilities
Market Context and Growing Demand for Freighter Conversions
Competition, Certification, and Strategic Implications
Competitive Landscape and Alternative Programs
Certification and Regulatory Framework
Launch Customers and Market Adoption
Conclusion
FAQ
It is the world’s first passenger-to-freighter conversion of the Boeing 777-300ER, offering a 100-tonne payload and 21% better fuel efficiency than the 747-400F. Dual certification from the FAA and CAAI sets a new industry benchmark.
AerCap is the launch customer with a firm order for 20 aircraft, and Kalitta Air is the first operator. Other customers include Fly Meta and Japan Airlines (via a partnership with Kalitta Air).
It offers more cargo volume than the 777F and 747-400BCF, with significant fuel savings and operational commonality with existing 777 fleets, making it a cost-effective and efficient alternative.
Limited availability of suitable aircraft for conversion, technical complexity, and competition from other conversion programs are key challenges. Delays and market acceptance risks also require careful management.
Photo Credit: IAI
MRO & Manufacturing
ITP Aero to Acquire Aero Norway, Expanding CFM56 MRO Services
ITP Aero signs agreement to acquire Aero Norway, enhancing aftermarket capabilities for CFM56 engines and expanding its European MRO presence.
ITP Aero, a global leader in aerospace propulsion, has signed a binding agreement to acquire Aero Norway, a specialized maintenance, repair, and overhaul (MRO) provider focused on CFM56 engines. According to the company’s official announcement, the transaction is expected to close during the first half of 2026, subject to customary regulatory approvals.
The acquisition represents a significant expansion of ITP Aero’s aftermarket capabilities. By integrating Aero Norway’s facility in Stavanger, Norway, ITP Aero aims to reinforce its status as a leading independent player in the aerospace services sector. The move follows a trajectory of aggressive growth for the Spanish propulsion company since its acquisition by Bain Capital in 22.
Aero Norway operates out of a facility at Sola Airport in Stavanger, employing a workforce of over 200 skilled technicians. The company has established a reputation for high-quality engine maintenance, specifically for the CFM56 engine family, serving a global client base of airlines, lessors, and asset managers.
In its press statement, ITP Aero highlighted that the two companies possess “highly complementary strengths.” The deal combines Aero Norway’s deep expertise in engine overhaul with ITP Aero’s existing engineering capabilities and component repair infrastructure. This synergy is designed to offer a more comprehensive suite of services to the aftermarket sector.
This agreement is the latest in a series of strategic moves by ITP Aero. In 2023, the company acquired BP Aero in the United States and was recently selected to join Pratt & Whitney’s GTF MRO network. These steps are part of a broader “2030 Strategic Plan” which aims to double the size of the business and increase the global workforce by 50% by the end of the decade.
While the press release focuses on corporate synergies, the acquisition underscores a critical trend in the current aviation landscape: the extended dominance of the CFM56 engine. As new-generation engines like the LEAP and GTF face supply chain delays and durability challenges, airlines are keeping older aircraft powered by CFM56 engines in service longer than originally planned.
Industry data suggests that approximately 20,000 CFM56 engines will remain in service through 2025. Consequently, the demand for maintenance shop visits is projected to peak between 2025 and 2027. By acquiring a specialist shop like Aero Norway, ITP Aero is effectively positioning itself to capture high-value work during this period of “structural undersupply” in the narrowbody market. This “Golden Tail”, the long, profitable tail end of an engine program’s lifecycle, provides a stable revenue runway for MRO providers capable of handling heavy overhauls. The crossover point where new-generation engine shop visits outnumber CFM56 visits is not expected until later in the decade, making capacity for legacy engines a premium asset today.
Leadership from both organizations emphasized the value of combining their respective technical strengths. Eva Azoulay, CEO of ITP Aero Group, described the agreement as a key component of the company’s roadmap.
“The signing of this binding acquisition agreement marks a significant milestone in our strategic roadmap. This acquisition reinforces our ambition to become a leading independent player in the aerospace aftermarket.”
, Eva Azoulay, CEO of ITP Aero Group
Neil Russell, CEO of Aero Norway, noted that the merger would unlock synergies beneficial to their customer base.
“By combining the complementary strengths of ITP Aero and Aero Norway, we will unlock significant synergies that enhance our competitiveness and deliver even greater value to our customers.”
, Neil Russell, CEO of Aero Norway
ITP Aero reports that it has tripled its earnings since 2022 and is currently implementing a long-term business plan that spans civil, defense, and MRO segments. The company was advised on legal M&A matters regarding this transaction by Baker McKenzie.
Pending regulatory clearance, the integration of Aero Norway into the ITP Aero Group will finalize in 2026, solidifying the company’s footprint in the European MRO market.
Sources:
ITP Aero to Acquire Aero Norway, Strengthening Position in CFM56 Aftermarket
Strategic Expansion in the MRO Sector
AirPro News Analysis: The “Golden Tail” of the CFM56
Executive Commentary
Future Outlook
Photo Credit: ITP Aero
MRO & Manufacturing
AkzoNobel Invests €50 Million to Upgrade US Aerospace Coatings Facilities
AkzoNobel invests €50 million to expand and modernize aerospace coatings production in Illinois and Wisconsin, enhancing capacity and supply chain resilience.
This article is based on an official press release from AkzoNobel.
AkzoNobel has officially announced a significant investments of €50 million (approximately $52–55 million) to modernize and expand its aerospace coatings capabilities in North America. According to the company’s announcement on December 18, 2025, the project will focus on upgrading its flagship manufacturing facility in Waukegan, Illinois, and establishing a new distribution center in Pleasant Prairie, Wisconsin.
This strategic move aims to increase production capacity and shorten lead times for airline and Maintenance, Repair, and Operations (MRO) customers. By enhancing its supply chain infrastructure, AkzoNobel intends to address the growing demand for air travel and the subsequent need for advanced aerospace coatings.
The investment centers on the Waukegan facility, which currently serves as AkzoNobel’s largest aerospace coatings production site globally. The site employs approximately 200 people and houses a dedicated color center. According to the press release, the capital injection will fund the installation of new machinery and automated processes designed to handle larger batch sizes.
To further optimize operations, the company is relocating its warehousing and distribution activities to a new facility in Pleasant Prairie, Wisconsin. This relocation is intended to free up floor space at the Waukegan plant, allowing for a focus on complex, customized chemical manufacturing.
Patrick Bourguignon, Director of AkzoNobel’s Automotive and Specialty Coatings, emphasized the forward-looking nature of the investment:
“This investment will increase our comprehensive North American supply capability and solidify our position as a frontrunner in the aerospace coatings industry. Demand for air travel is expected to grow significantly… and we want to make sure our customers are able to meet that demand.”
A key component of the upgrade is the introduction of a “Rapid Service Unit” dedicated to faster turnaround times for the MRO market. The company states that the new infrastructure will include a “liquid pre-batch area” and “high-speed dissolvers” to accelerate production.
Martijn Arkesteijn, Global Operations Director for AkzoNobel Aerospace Coatings, noted that these improvements are designed to enhance flexibility for customers: “We’ll be able to provide current and future customers with even more flexibility through the delivery of large batch sizes, better responsiveness to market needs and shorter lead time for color development.”
While AkzoNobel’s announcement focuses on internal efficiency, this investment arrives during a period of intensified competition within the North American aerospace sector. Earlier in 2025, rival manufacturer PPG announced a massive $380 million investment to construct a new aerospace coatings plant in Shelby, North Carolina.
In our view, AkzoNobel’s strategy differs significantly from its competitor’s greenfield approach. Rather than building new capacity from scratch, AkzoNobel is executing a targeted upgrade of existing assets. This “efficiency war” suggests that the company is betting on agility and technology upgrades, specifically the ability to deliver custom colors and small batches quickly via its new Rapid Service Unit, rather than simply expanding raw volume output.
The upgraded facilities are also aligned with the aviation industry’s push for decarbonization. AkzoNobel highlighted that the investment supports the production of its “Basecoat/Clearcoat” systems, which are lighter than traditional coatings. Reducing paint weight is a critical factor for airlines seeking to lower fuel consumption and carbon emissions.
Furthermore, the new automated processes are expected to reduce chemical waste and solvent use. The facility upgrades will likely support the increased production of chromate-free primers, meeting stricter regulatory requirements in both the United States and the European Union.
By localizing more storage and production capacity in North America, AkzoNobel also aims to bolster supply chain resilience, addressing vulnerabilities exposed during the post-pandemic aviation recovery.
AkzoNobel Announces €50 Million Upgrade to US Aerospace Coatings Operations
Strategic Expansion in Illinois and Wisconsin
Operational Efficiency and the “Rapid Service Unit”
AirPro News Analysis: The Competitive Landscape
Sustainability and Technology Integration
Sources
Photo Credit: AkzoNobel
MRO & Manufacturing
GE Aerospace Deploys 180 Engineers for Holiday Flight Operations
GE Aerospace positions 180 Field Service Engineers in 34 countries to prevent aircraft groundings and manage winter maintenance challenges during peak holiday travel.
While millions of travelers settle in for holiday downtime, the global aviation industry enters its most critical operational window. According to AAA projections, approximately 122.4 million Americans traveled 50 miles or more from home during the 2024-2025 holiday season, with air travel seeing a projected 2.3% increase in domestic flyers. Behind this surge lies a largely invisible workforce dedicated to preventing cancellations before they happen.
According to an official press release from GE Aerospace, the company deployed 180 Field Service Engineers (FSEs) to 34 countries specifically to support Airlines customers during this peak period. These engineers are “embedded” directly with airlines and airframers, working on tarmacs and in hangars to mitigate technical risks that could otherwise ground fleets during the busiest weeks of the year.
The role of an FSE goes beyond standard maintenance; it involves proactive problem-solving under strict time constraints. GE Aerospace describes these teams as being on the front lines, ensuring that both passenger jets and cargo freighters remain operational despite the strain of high-cycle usage and winter weather.
Jordan Mayes, a Regional Leader for GE Aerospace Commercial Field Service in Western Europe and Africa, highlighted the intensity of the holiday operational tempo in the company’s statement:
“The sense of urgency is more elevated than normal… And often there are fewer hands to do the work.”
, Jordan Mayes, GE Aerospace Regional Leader
This urgency is driven not just by passenger volume, but by a booming air cargo sector. Industry data indicates that air cargo volumes saw double-digit growth in late 2024, driven by e-commerce demands and shipping disruptions in the Red Sea. Stephane Petter, a Regional Leader for Central/Eastern Europe and Central Asia, noted that the stakes for cargo are often underestimated.
“An issue with a grounded or delayed passenger aircraft might delay 350 people. With a cargo plane, thousands of parcels might be delayed, so the downstream customer impact is potentially greater.”
, Stephane Petter, GE Aerospace Regional Leader
To illustrate the impact of embedded engineers, GE Aerospace shared a specific operational success story involving Alaa Ibrahim, the Middle East regional leader. His team was monitoring a Boeing 787 Dreamliner equipped with GEnx-1B engines. The engineers identified a minor clamp repair that was necessary to keep the engine compliant. The engine was only four cycles (flights) away from a mandatory 500-cycle inspection limit. If the limit was reached without the repair, the aircraft would be grounded, a disastrous outcome during peak holiday scheduling.
Instead of waiting for a forced grounding, Ibrahim’s team identified a six-hour window in the aircraft’s schedule. They performed the inspection and repair proactively, ensuring the aircraft remained available for service without disrupting the airline’s timetable.
Beyond scheduling pressures, FSEs must contend with the physical realities of winter aviation. Industry reports highlight that “cold soak”, where an aircraft sits in freezing temperatures for extended periods, presents unique mechanical challenges. Oil can thicken, and seals can shrink or become brittle.
According to technical data regarding modern engines like the CFM LEAP, specific warm-up protocols are required to thermally stabilize the engine before takeoff power is applied. Maintenance teams often switch to lower-viscosity fluids and rigorously check breather tubes for ice accumulation. If a breather tube freezes due to condensation, it can pressurize the engine and cause seal failures.
The deployment of these 180 engineers highlights a broader shift in aviation maintenance from reactive repairs to predictive intervention. By utilizing digital tools that monitor engine health in real-time, often referred to as “Flight Deck” principles, engineers can detect vibration trends or temperature spikes before they trigger a cockpit warning.
We observe that this strategy is particularly vital during the holidays. When load factors are near 100%, airlines have zero spare aircraft to absorb a cancellation. The ability of FSEs to turn a potential “aircraft on ground” (AOG) event into a scheduled maintenance task during a layover is the difference between a smooth operation and a headline-making travel meltdown.
All Sleigh, No Delay: How Field Service Engineers Keep Holiday Fleets Airborne
The “Invisible Elves” of Aviation
Operational Wins: The GEnx-1B “Save”
Technical Challenges in Winter Operations
AirPro News Analysis: The Shift to Predictive Maintenance
Frequently Asked Questions
Sources
Photo Credit: GE Aerospace
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