Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) will convert an additional three B767-300 passenger aircraft to cargo aircraft for German courier, parcel and express mail company DHL International, with the potential for a fourth aircraft. This contract, worth tens of millions of dollars, marks a further expansion of IAI Aviation Group's aircraft cargo conversions program, and comes as demand for passenger planes following the Covid-19 crisis, and demand for cargo planes rises.
IAI Aviation Group was set up in January 2019 by combining the company’s commercial and military aircraft activities. IAI’s Aviation Group designs, develops, and certififies passenger to cargo aircraft conversions. Customers include DHL and the world’s other largest courier and parcel delivery companies.
Over the last decade, converted B767s have been the backbone of the cargo aircraft market. To maintain IAI's future dominance in this market and offer new solutions, IAI Aviation Group had also signed a contract with GECAS to design, develop, and certify the B777-300 passenger to cargo conversion.
IAI EVP and Aviation Group general manager Yossi Melamed said, "IAI is a world leader for passenger to cargo conversions. We provide high-quality solutions tailored to the customer's needs on narrow and wide-body aircraft. The constant increase in the e-commerce market and the effects of the Covid-19 pandemic have emphasized the importance of cargo aircraft. We thank DHL International GmbH for their acknowledgment of IAI’s performance and again trusting us to convert additional aircraft for their cargo aircraft fleet."
Published by Globes, Israel business news - en.globes.co.il - on June 22, 2020
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