The coronavirus pandemic is expected to cost the Qantas Group A$16 billion ($12.4 billion) in lost revenue, though airline chief Alan Joyce believes it is “slowly starting to turn the corner”.
ST Engineering forms freighter-leasing joint venture
Temasek Holdings to provide capital for purchase and conversion of used aircraft
1 288 2 minutes read ST Engineering is diversifying its aircraft leasing business to include freighters. The maintenance and repair side of the company retrofitted this Airbus A321. (Photo: Elbe Flugzeugwerke)
ST Engineering, a global technology defense and engineering group based in Singapore, on Tuesday announced an agreement with state-owned investment company Temasek Holdings to establish a joint venture for leasing freighter aircraft.
The company’s aircraft and engine leasing unit, which currently manages passenger aircraft, is expanding its scope because of the strong outlook for the air cargo market, which is experiencing record-high freighter utilization, rapid growth in e-commerce demand and higher cargo yields.
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A second manufacturer is gearing up to produce Airbus A321 converted freighters in the U.S. this summer, taking on a European engineering firm that is gaining sales momentum eight months after entering the market in the single-aisle freighter segment where the Boeing 737-800 has a three-year head start.
The two companies will compete head-to-head as well as against the Boeing product. Aviation experts say the A321 is highly desirable for express delivery and regional air cargo operations.
On Thursday, Dublin-based leasing company GTLK Europe ordered four aircraft reconfigured to carry cargo on the main deck, Elbe Flugzeugwerke, the company doing the work, announced. EFW is scheduled to convert three of the aircraft this year and the fourth in 2022.
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Australian national carrier Qantas Airways has pledged to net-zero carbon emissions by 2050, exceeding the commitments made by the aviation industry.
From next year, the group’s aviation business comprising Qantas Airlines, Jetstar, QantasLink and Qantas Freight will offset the carbon emissions from domestic and international flights.
The operator is also planning to develop long-term solutions that will contribute to reducing greenhouse gas emissions from the aviation industry in the next 30 years.
The solutions will be developed by collaborating with industry, research institutions and governments.