Challenge Group Embarks On Freighter Conversion Program

Israel-based Challenge Group is embarking on a significant growth plan over the next few years, which could see it take on as many as 10 Boeing 777-300ERSFs.

The company is partnering with Israel Aerospace Industries (IAI) to get up to 10 Boeing 777-300s converted at the latter’s Tel Aviv facility into 777-300ERSFs.

The group, which has cargo airlines operating under Israeli, Belgian and Maltese AOCs, has a fleet of six 747-400 and four 767-300 freighters. The intention is that some of the incoming 777-300ERSFs will replace existing aircraft—notably two of the 747s that are more than 25 years old—but that the conversion program will see the fleet grow overall.

The aim is to strengthen the Challenge's existing network as well as opening up new markets with more efficient and sustainable airfreight and logistics solutions.

Several of the 777 freighters are former Jet Airways aircraft from India.

Challenge has embarked on the conversion program for several reasons, its head of industry relations and marketing Gianluca Marcangelo tells Aviation Week.

The first of these were industry forecasts indicating there would be capacity constraints on the freight sector for the next five to 10 years. Secondly, Boeing’s previous freighter conversion lines for the 747 and 767 were either closed or closing and thirdly, the program would give new life to existing airframes. The 777-300, Marcangelo says, with its payload of close to 100 tons, came “very, very close” to that of the company’s 747s.

However, given the nature of much of the cargo carried by Challenge, the 747s’ upward-swinging nose loading door meant that the four-engined type remained a valuable component of the fleet.

“At the moment, we’re converting six, with an option for another four,” Marcangelo says. The first conversion is likely to take three to four months and should be in service by the end of the year, he added. The first two aircraft will operate under the Group’s Maltese AOC.

If Challenge takes all 10 aircraft, CEO Yossi Shoukroun envisages them entering service over the next five years.

The group’s teams are currently working alongside the Maltese Civil Aviation Directorate to integrate the aircraft into its operating certificate, while recruiting and training new pilots for the type rating.

Marcangelo sees the 777s as being particularly useful for services out of Asia, tapping into the booming e-commerce streams from the region. In particular, India is shaping up as a major exporter.

Several companies, particularly U.S. ones such as Apple, are moving some production facilities from China to India in light of current geopolitical tensions.