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Israeli firm to set up cargo aircraft conversion facility in Abu Dhabi

Israeli firm to set up cargo aircraft conversion facility in Abu Dhabi 737-700 plane during conversion at IAI. (Photo via IAI)
By Newsroom
Aug 14, 2024 10:56 AM

Israel Aerospace Industries (IAI) is advancing its plan to establish a significant presence in Abu Dhabi, where it will convert Emirates’ Boeing 777 aircraft into cargo aircraft.

This move shows the United Arab Emirates’ ‘commitment’ to maintaining and expanding its ties with Israel, even as geopolitical tensions escalate in the region and the current situation in Gaza.

UAE-Israel Relations amid rising tensions

This collaboration follows an earlier agreement in 2021, where IAI signed a deal to convert four Emirates aircraft, marking one of the initial outcomes of the normalization of relations between the UAE and Israel.

However, relations between Israel and several Middle Eastern nations have become increasingly strained since the eruption of the Israel-Hamas conflict in Gaza in October. In contrast to countries like Türkiye, which halted trade with Israel, the UAE has maintained its recognition of Israel, though it has frequently criticized Israel’s continued military actions in Gaza and called for a cease-fire.

Growing demand for freighter conversions

IAI’s aviation division, responsible for providing maintenance, repair and overhaul (MRO) services, will begin reconfiguring 10 Boeing 777s from Emirates’ fleet at two dedicated hangars in Abu Dhabi starting in October.

Shmuel Kuzi, the executive vice president of the division, confirmed the details in a recent interview with Bloomberg. IAI, a state-owned entity, is witnessing increasing demand from lessors and airlines for converted freighters because of limited availability from major aircraft manufacturers like Airbus SE and Boeing.

Expansion plans despite regional sensitivities

IAI is currently seeking approval from the US Federal Aviation Administration for the overhauled aircraft, which is expected in the coming months.

The conversion process will be conducted at multiple sites, including locations in South Korea, the United States and the Etihad Airways Engineering facility in Abu Dhabi.

“This is not the end of the story, because we always look forward to opening in other places since the demand is huge and we need to supply this demand,” Kuzi added.

Last Updated:  Aug 14, 2024 10:57 AM