Boeing to convert old 737 passenger planes into cargo jets

Old 737 passenger planes converted into freighters have won orders from a variety of companies including Amazon.

Boeing is adding manufacturing capacity to convert old 737 passenger planes into cargo jets as part of a long-term bet on continued growth in e-commerce.

The Chicago-based company said Wednesday it will add two production lines to convert Boeing 737-800s into freighters that will be operated by Cooperativa Autogestionaria de Servicios Aeroindustriales, which is located in a free-trade zone near Costa Rica’s capital San Jose and will allow for the duty-free importation of parts.

Converted 737 freighters have become increasingly popular and won orders from companies such as Amazon as the e-commerce giant adds to the fleets of airlines that fly for its Amazon Air arm.