China Southern Selects B/E Aerospace For A300-600 Passenger-to-Freighter Conversion
February 23 2006 - 9:30AM
Business Wire
B/E Aerospace, Inc. (Nasdaq:BEAV), the world's leading manufacturer
of aircraft cabin interior products and a leading aftermarket
distributor of aerospace fasteners, today announced that China
Southern, the largest airline in the People's Republic of China,
has selected it to convert six of its A300-600 passenger airliners
to freighter aircraft. Deliveries under this program are expected
to begin in the latter part of 2007. B/E's Flight Structures group
will develop the engineering and certification package and will
manufacture the structural components required for the conversion,
while Guangzhou Aircraft Maintenance Engineering Company (GAMECO),
a China Southern affiliate, will perform the conversions. The
passenger-to-freighter conversion process includes modifying the
floor and floor support structures to accommodate the increased
freighter floor loading, as well as the airframe to accept a cargo
door and a door surround structure to accommodate large freight
pallets and containers. Aircraft mechanical and electrical systems
will also be modified to suit the aircraft's new mission as a
freighter. The structural modification uses state-of-the-art finite
element modeling to establish internal and external loads. "With
nearly 300 A300-600 aircraft in service today, industry analysts
have estimated over 160 are reaching the end of their useful
passenger life, making this airframe an ideal candidate for
conversion to a new mission as a cargo freighter, and representing
a potential market of more than one billion dollars. The A300-600
passenger-to-freighter conversion offers a cargo plane with
superior operating economics while significantly extending the
economic operating life of the airframe asset," said Amin J.
Khoury, Chairman and Chief Executive Officer of B/E Aerospace, Inc.
"The China Southern program should allow B/E to leverage its proven
capabilities in passenger-to-freighter conversions to this new
airframe platform." B/E, through is Flight Structures group,
currently holds over 200 supplemental type certificates (STCs),
which are required whenever the structure of an aircraft is
modified. Flight Structures has extensive experience in converting
passenger aircraft to freighters, having previously completed 75
passenger-to-freighter conversions on the A300B4, B747-200 and
B767-200 airframe platforms. This news release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Such forward-looking statements involve risks and
uncertainties. B/E's actual experience may differ materially from
that anticipated in such statements. Factors that might cause such
a difference include those discussed in B/E's filings with the
Securities and Exchange Commission, including but not limited to
its most recent proxy statement, Form 10-K and Form 10-Q. For more
information, see the section entitled "Forward-Looking Statements"
contained in B/E's Form 10-K and in other filings. The
forward-looking statements included in this news release are made
only as of the date of this news release and, except as required by
federal securities laws, we do not have any obligation to publicly
update or revise any forward-looking statements to reflect
subsequent events or circumstances. About B/E Aerospace, Inc. B/E
Aerospace, Inc. is the world's leading manufacturer of aircraft
cabin interior products, and a leading aftermarket distributor of
aerospace fasteners. B/E designs, develops and manufactures a broad
range of products for both commercial aircraft and business jets.
B/E manufactured products include aircraft cabin seating, lighting,
oxygen, and food and beverage preparation and storage equipment.
The company also provides cabin interior design, reconfiguration
and passenger-to-freighter conversion services. Products for the
existing aircraft fleet -- the aftermarket -- generate about 60
percent of sales. B/E sells and supports its products through its
own global direct sales and product support organization. For more
information, visit B/E's website at http://www.beaerospace.com.
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