Aviation holding company Air Transport Services Group (ATSG) has secured approval from the US Federal Aviation Administration (FAA) for its Boeing 737-700 conversion programme.

The Passenger-to-FlexCombi conversion programme has been developed and managed by PEMCO Conversions, ATSG subsidiary Pemco World Air Services’ division.

The FAA issued a Supplemental Type Certification for its conversion design for the next-generation aircraft.

As part of the conversion, the company will offer two different main-deck freight and passenger configurations and a full-freighter mode.

The aircraft will be marketed as B737-700FC (FlexCombi).

The PEMCO B737-700FC comes in three configurations, namely a 24-seat cabin with a 2,640ft³ cargo hold and a 12-seat cabin with a 3,005ft³ cargo hold.

It also offers a full-freighter mode consisting of a 3,370ft³ cargo hold for a payload of up to 40,000lb in eight pallet positions.

PEMCO conversion programme director Mike Andrews said: “We are pleased with the performance of our Tampa cargo conversion team and continue to develop innovative products meeting increased customer demand for 737 conversions.”

Bahrain-based tailored aviation and business solutions provider Chisholm Enterprises is the launch customer for the PEMCO B737-700FC.

Its subsidiary Texel Air, a non-scheduled cargo airline, will operate the B737-700FC from Bahrain International Airport.

PEMCO general manager Jeff Becker said: “Chisholm is a great partner that provides unique services in its market, so the flexibility of our 737 conversion products continues to meet Chisholm’s needs as its fleet grows.”

Following FAA approval, PEMCO is planning to pursue the European Aviation Safety Agency and the Civil Aviation Administration of China certification.

The company is also developing a B737-700F full-freighter conversion programme.