Incheon Airport Secures IAI Cargo Aircraft Conversion Project... "Operation Starting in 2025"

Incheon International Airport has become the first overseas production base for the Boeing B777 converted freighter, developed for the first time in the world by Israel Aerospace Industries (hereinafter IAI), an Israeli state-owned enterprise.

On the morning of the 17th, Incheon International Airport Corporation announced that it signed the 'IAI Boeing B777 Freighter Conversion Project Overseas First Production Base Investment Attraction Implementation Agreement' at Paradise City Hotel in Jung-gu, Incheon, with IAI, the Israeli state-owned enterprise, and Sharp Technics K, a domestic aviation MRO specialist company.

According to the agreement signed that day, IAI and Sharp Technics K will establish a foreign-invested joint venture. The business of converting aging Boeing B777 passenger aircraft into freighters (P2F Conversion), developed for the first time in the world by IAI, is scheduled to begin in 2025 at the first conversion facility at Incheon Airport. Additionally, the medium and heavy maintenance business for large freighters will be further expanded.

Aerial view of Incheon Airport Advanced Complex Aviation Cluster. Provided by Incheon International Airport Corporation

The joint venture IKCS will start operating the first conversion facility in 2025. Considering the market environment comprehensively, including the increasing demand for freighter conversion (P2F Conversion) and medium and heavy maintenance for large freighters, there are plans to expand the conversion facilities. Incheon International Airport Corporation will construct and lease the first freighter conversion facility within the Incheon Airport Advanced Complex Aviation Cluster.

This agreement is also expected to contribute to the growth of the domestic aviation industry. Freighters completed at the conversion facility within the Incheon Airport Advanced Complex Aviation Cluster will be 100% exported overseas to customers including global major airlines, aircraft leasing companies, and express cargo airlines.

Accordingly, the cumulative export value of domestically produced Boeing B777 converted freighters is expected to reach approximately 12 billion USD (15 trillion KRW) by 2079, following the delivery of the first converted freighter in 2025. Additionally, about 1,800 high-quality jobs are expected to be newly created during the same period.

In particular, through this investment attraction project, the highest-level cargo aircraft conversion technology, which is the most technically challenging in the field of aircraft airframe maintenance, will be transferred to the domestic company Sharp Technics K. It is expected to serve as an opportunity to secure global competitiveness in Korea’s aircraft maintenance industry in the future.

Moreover, more than 58% of the total sales (delivery price) of conversion parts, which account for the cargo aircraft conversion business, will be produced and procured from the domestic aviation parts supply chain, such as Sacheon in Gyeongnam, rather than being imported from neighboring competing countries. This is expected to contribute to mutual growth through regional win-win cooperation and development.

President Kim Kyung-wook said, "By attracting IAI’s Boeing B777 freighter conversion project’s first overseas production base to Incheon Airport, we expect to lay the foundation for the mutual growth of the domestic aviation industry." He added, "Going forward, based on the world-class air transport infrastructure competitiveness possessed by Incheon Airport, we plan to strengthen the export competitiveness of Korea’s aviation industry and make a significant contribution to national economic development."

This content was produced with the assistance of AI translation services.