KUALA LUMPUR – Malaysian logistics operator, Raya Airways Sdn Bhd (Raya Airways), in a statement announced that it will lease four Airbus narrow-body Passenger-to-Freighter (P2F) aircraft consisting of two (2) A320P2F and two (2) A321P2F from ST Engineering’s aviation asset management business.
Delivery of the first jet, an A321P2F (MSN1293) is expected by the end of the year, with ST Engineering joint venture Elbe Flugzeugwerke (EFW) conducting the conversion work in Singapore.
Raya Airways’ Group Managing Director, Mohamad Najib Ishak has recognised the need for increased services to respond to demand.
“The air cargo industry, being an integral part of the global supply chain, is expected to grow in tandem with the global economy. The recent industry outlook by the International Air Transport Association states that cargo volumes are expected to set a record high of 68.4 million tonnes in 2022 with cargo revenues expected to account for US$191b of industry revenues.”
Growing Demand and Sustainability Agenda
With the introduction of the A320P2Fs and A321P2Fs into their fleet, Raya Airways is confident that they are able to scale up their operational capacity to meet the growing demand, whilst being able to reduce the carbon footprint as they push forward their sustainability agenda.
The four freighter aircraft for Raya Airways will be converted under the A320/A321P2F programme of Elbe Flugzeugwerke (EFW), which is the joint venture between ST Engineering and Airbus. Conversion for the first aircraft, an A321, has started at ST Engineering’s facility in Singapore with expected delivery in the fourth quarter of 2022.
Footprint Expansion
Raya Airways’ Chief Commercial Officer, MD Hidayat Rahim is also excited about the added payload capacity that will further expand the company’s footprint in the region.
“Once converted, each A321P2F will offer 27 tonnes while each A320P2F will offer 21 tonnes, effectively increasing Raya Airways’ combined payload by up to 96 tonnes. Our commitment to our clients is that wherever there are economic centres with robust future prospects, Raya Airways aims to be there.”
EVP and Head of Aviation Asset Management at ST Engineering, Yip Hin Meng are delighted to enter their first freighter aircraft leasing partnership with Raya Airways.
“Our unique leasing solutions such as the bundling of aircraft leasing with MRO services, when combined with in-house developed P2F programmes and top-notch conversion standards, offer operators best-in-class economics and unparalleled levels in reliability.”
Asset Management Solutions
ST Engineering’s aviation asset management business is a full-fledged aircraft and engine lessor with core competencies in deal origination, financing, securitisation, lease management, technical asset management, re-marketing and repossession.
Its portfolio of freighter aircraft includes the A320P2F and A321P2F as the narrowbody options and the A330P2F as the widebody option. In addition to leasing solutions, ST Engineering provides total lifecycle asset management solutions. These include turnkey aircraft and cabin re-configuration services, aircraft and engine MRO as well as freighter conversion.
EFW’s A320/A321P2F programme is the only solution in the market developed using original OEM data and support from Airbus, which ensures greater lifecycle value, superior quality and reliability, as well as better maintenance planning.
The A320/A321P2F solution comes with balanced payload-range capability and optimised weight distribution to enable random loading even on empty flights, providing high flexibility to operators. Integrated cockpit design also ensures that operators can remain in the OEM design environment.
Raya Airways is one of Malaysia’s leading and most trusted logistics solutions providers. The carrier provides expertise in air freight solutions for businesses in Southeast Asia including transportation of cargo by air, aircraft charter services, ground handling maintenance, repair and overhaul (MRO) and aircraft commercial cargo space selling, among others.
Since taking flight in November 1993, Raya Airways has continued to build on a wide range of experience, knowledge, expertise and good service record within the industry. Raya Airways proudly connects and operates scheduled air cargo services into major regional hubs such as China (including Hong Kong), Indonesia, Singapore and Vietnam as well as prime commercial centres in East Malaysia, namely Kota Kinabalu, Kuching and Labuan.
ST Engineering is a global technology, defence and engineering group with a diverse portfolio of businesses across the aerospace, smart city, defence and public security segments. The Group harnesses technology and innovation to solve real-world problems, enabling a more secure and sustainable world. Headquartered in Singapore, it has operations spanning Asia, Europe, the Middle East and the U.S., serving customers in more than 100 countries.
ST Engineering reported revenue of $7.7b in FY2021 and ranks among the largest companies listed on the Singapore Exchange. It is a component stock of the FTSE Straits Times Index, MSCI Singapore, iEdge SG ESG Transparency Index and iEdge SG ESG Leaders Index.
