Establishing a 737 freighter conversion plant in India with the help of Boeing and GMR

In Hyderabad, Boeing stated it would establish the conversion facility alongside the Indian provider of maintenance, repair, and overhaul, GMR Aero Technic.

In order to meet local and international demand for the service, Boeing Co. announced on Friday that it will establish a facility in India to convert 737 passenger planes into specialized freighters.

The investment comes despite a global economic slump that has crippled the global air cargo sector. It furthers the American manufacturer’s growth into India and comes on top of a record-breaking plane order by flag carrier Air India.

The demand for cargo worldwide decreased by about 15% in January, according to the International Air Transport Association (IATA).

According to data source WorldACD, air freight rates are 28% lower than they were at this time last year.

In Hyderabad, Boeing stated it would establish the conversion facility alongside the Indian provider of maintenance, repair, and overhaul, GMR Aero Technic.

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According to Chief Strategy Officer Marc Allen, the agreement will support India’s goals of becoming a major freight center and add to Boeing’s $1 billion supply chain purchasing from India.

He made no mention of the timing of the facility’s opening or the amount of the investment.

The proposed facility comes amid a push by Boeing to grow in India, which includes a $24 million investment to establish an aviation part logistics hub.

During the next 20 years, there will be a need for more than 1,700 passenger planes to be converted into freighters, with roughly 600 of those requests coming from Asia, according to Salil Gupte, president of Boeing India.

According to him, India’s expanding electronics industry and e-commerce demand are improving freighter prospects.

Therefore it is only fitting that we have the potential to establish a line to manufacture those freighters here in India, not just for India but for the region and for the world, he said.

The pandemic’s reduction in travel led to a record-breaking rush to convert outdated passenger planes into freighters. But, analysts claim that when cargo rates decline, aircraft lessors may potentially be compelled to terminate conversions or stuck with extra freighters.