Second ‘Big Twin’ freighter moves closer to service as carrier accelerates widebody growth and targets an 18-aircraft fleet
Challenge Group has reached another milestone in its ambitious fleet modernisation programme, successfully completing the post-conversion test flight of its second Boeing 777-300ERSF freighter, further strengthening its position in the global widebody air cargo market.
The aircraft is the latest addition to the carrier’s long-term fleet expansion strategy built around Israel Aerospace Industries’ (IAI) Boeing 777-300ER passenger-to-freighter (P2F) conversion programme, widely known as the “Big Twin.” Following successful testing, the aircraft is expected to enter commercial service shortly.
The delivery follows the introduction of Challenge Group’s first Boeing 777-300ERSF, registered 9H-CAZ, which entered service in February 2026 under Challenge Airlines MT, the group’s Maltese airline. That aircraft marked a significant industry milestone as the first Boeing 777-300ERSF to operate under a European Union Aviation Safety Agency (EASA) Air Operator Certificate (AOC).
Building One of the World’s Largest 777-300ERSF Fleets
The second converted aircraft represents another step in Challenge Group’s long-term strategy to build one of the industry’s largest fleets of Boeing 777-300ERSF freighters.
IAI is carrying out the conversions at its facility in Tel Aviv, transforming passenger Boeing 777-300ER aircraft into high-capacity freighters capable of carrying close to 100 tonnes of cargo. The aircraft are designed to transport a wide range of specialised freight, including pharmaceuticals, perishables, live animals, dangerous goods, oversized cargo and other high-value shipments requiring long-haul capability.
Challenge Group’s investment extends well beyond the two aircraft already converted. The company launched its Boeing 777 passenger-to-freighter programme in May 2025, placing four firm conversion orders with options for four additional aircraft, creating the potential for a fleet of eight Boeing 777-300ERSFs.
Strategic Investments Accelerate Fleet Growth
To support the programme, Challenge Group has made a series of strategic investments across the aircraft acquisition and leasing market.
In January 2025, the company signed an agreement with global aircraft lessor AerCap for two pre-converted Boeing 777-300ERSFs. Later, in October 2025, it entered into an ACMI partnership with Kalitta Air to operate an additional Boeing 777-300ERSF, further enhancing fleet flexibility while awaiting future aircraft deliveries.
The carrier has also secured five former Jet Airways Boeing 777-300ER aircraft as conversion feedstock, investing more than US$107 million through two acquisition phases.
The latest purchase, completed in April 2026, involved two additional aircraft acquired for approximately US$61 million through India’s insolvency and e-auction process. These acquisitions increased Challenge Group’s total Boeing 777-300ER inventory to five aircraft.
The former Jet Airways aircraft, grounded since the airline ceased operations in 2019, are currently awaiting deregistration and regulatory clearance from India’s Directorate General of Civil Aviation (DGCA) before being ferried to IAI’s conversion facility in Israel.
Fleet Modernisation Supports Global Cargo Growth
Once all planned conversions are completed, Challenge Group expects to operate a fleet of 18 aircraft, including eight Boeing 777-300ERSFs, significantly expanding its long-haul cargo capabilities.
The group’s current operational fleet consists of 10 freighters—five Boeing 747s, four Boeing 767s and one Boeing 777-300ERSF—with one Boeing 747 currently inactive. The addition of new-generation Boeing 777 freighters is expected to improve fuel efficiency, payload capability and operational flexibility across intercontinental cargo routes.
The fleet expansion forms a key part of Challenge Group’s broader strategy to strengthen global trade connectivity while supporting integrated logistics solutions through its network of airlines, ground handling, road feeder services, aircraft leasing and maintenance operations.
Originally established in 1976 as CAL Cargo Airlines to transport agricultural exports from Israel to Europe, the company has evolved into a diversified global logistics group. Following its acquisition by Chairman Offer Gilboa in 2010, the business underwent a major transformation and was rebranded as Challenge Group in 2020, with its Israeli airline becoming Challenge Airlines IL in 2022.
Today, Challenge Group operates airlines in Israel, Belgium and Malta, providing scheduled and charter cargo services across international markets while continuing to invest in next-generation freighter capacity.
