Israel Aerospace Industries (IAI) announced today that following rigorous efforts over the past year, it has successfully completed conversion of the Boeing B777-300ERSF passenger aircraft into a cargo aircraft, and received the industry’s first Supplemental Type Certificate (STC) certificate from both the US Federal Aviation Administration (FAA) and the Civil Aviation Authority of Israel (CAAI).
IAI says that as one of the world’s largest cargo aircraft, the newly certified B777-300ERSF will significantly increase global shipping capacity, speed and efficiency. This is a significant breakthrough in aviation and IAI is the first company in the world to convert an aircraft of this magnitude.
Why convert a plane and not buy a new one?
Passenger aircraft wear down over the course of about 15 years of operation, and even more so after about 30 years, whether it is the aircraft seats or the electronic systems. Cargo aircraft can be purchased from the manufacturer, but the cost of conversion is about 20% lower than the price of a new aircraft, and in any case a fairly new source emerges. Thus, the estimated cost of converting a Boeing 777 is, for example, about $264-340 million – depending on the specific model.
The maiden flight of the 777 took place 31 years ago. If the conversion is carried out when the aircraft is 15 years old, it can be used as a cargo aircraft for about another 50 years.
IAI CEO Boaz Levy tells “Globes” that no one cares about the internal wear and tear of a cargo plane, because if you take out the important cockpit, the rest becomes a huge space. “We are one of the few in the world in the field of conversions,” Levy stresses. “Not everyone can convert a plane, due to difficult engineering and operational elements.”
What types of aircraft does IAI convert? And why convert the 777?
Until now, IAI has converted Boeing 737, 747, 767, and now the 777. The larger volume of the aircraft significantly affects the carrying capacity. While a 767 aircraft can carry 60 tons as a cargo aircraft, the 777 can carry 100 tons. Levy notes that IAI has been active in the field of aircraft conversions for many years and is considered one of the world’s leaders.
Levy says, “Refurbishment is not just replacing equipment in an airplane with other equipment. It requires work on the structure with high engineering ability, and opening it up to insert equipment. After that, all the reinforcements of the airplane must be changed, its interior must be built, and each such component must have a license. The Civil Aviation Authority of Israel (CAAI) and the FAA (FAA) supervise every screw and change. After everything was checked, we went through a series of comprehensive tests and we passed them all.”
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Who are the customers in the deal?
AerCap is the first customer in the B777-300ERSF cargo aircraft conversion program, while Kalitta will be the first operator. The cargo market works in such a way that a company like AerCap buys an aircraft, transfers it to IAI for conversion, and then distributes it to companies on a leasing model. Companies like AerCap know how to balance the market for them within the framework of trade, knowledge that is required in the cargo market, which is affected by various rising and falling demand factors including even seasonal.
Why does a defense company like IAI engage in the conversion of civilian aircraft?
“We are an aerospace company,” explains Levy. “Most of our products, including in military divisions, come from the world of aviation. Once you know and have the engineering infrastructure to design an airplane or even a flying platform, that’s the basis for everything: for drones, missiles, and many other things. An aeronautical engineer is an aeronautical engineer, aircraft electrical engineering is aircraft electrical engineering, and ultimately, the operations unique to the world of aviation serve both civilian and military sectors.”
How significant is air transport?
About 80% of global goods movement is carried out by sea, but various disruptions, such as the Houthi attacks in the Red Sea have caused most traffic from the East Asia to Europe to be diverted via the Cape of Good Hope, and have caused a much higher demand for air freight transport. According to IATA data, last July there was a 5.5% growth in air freight transport on an annual basis.
Published by Globes, Israel business news – en.globes.co.il – on September 1, 2025.
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