SF Express earmarks $212 million for aircraft purchases in latest bond offer

[caption id="attachment_412442" align="alignright" width="467"] An SF Airlines 747-400ERF.[/caption] This week, Shenzhen-based SF Holdings, the parent of SF Express and SF Airlines , announced the issuance of six-year convertible bonds in hopes of raising US$825 million (5.8 billion yuan). Of this amount, the largest allocation, some $212 million, will go towards aviation-related expenses including maintenance of SF Airlines’ existing freighter fleet, and to fund the purchase of new aircraft. SF Airlines has long made clear its intentions to expand an already robust freighter fleet, particularly as construction progress on its global express hub under construction in central China. See also: E-commerce drives larger, increasingly modern fleet The Ezhou SuperHub ( EIS ) will boast annual throughput capacity of more than 2.6 million tonnes . From the airport, SF Airlines expects to be able to reach 90% of the country within a two-hour flight. EIS is at the center of SF’s three-tier aviation strategy that will eventually make 36-hour nationwide express service across China possible . To achieve this goal, additional freighters will be needed. At present, the carrier’s own-operated fleet comprises of two 747-400ERFs, eight 767-300BCFs, thirty 757-200PCFs, and seventeen 737 classics. The airline has three 757-200s in various stages of conversion with Precision Aircraft Solutions and will take delivery of at least three of the type by mid next year. SF has also been eager to expand its 767 fleet, but has encountered difficulties securing feedstock. Last year, SF Express missed out on a tranche of twenty aircraft slated to come out of the American Airlines fleet , to ATSG. SF Airlines was also a launch customer for the 737-800BCF but has not yet added any of the type to its fleet. As for its 747-400F fleet, SF Airlines has not yet outlined its large widebody fleet targets. Returning to the bond offer, the remaining funds will be utilized to upgrade the express company’s smart logistics systems, advance facility automation and for land and real-estate related use. SF will also pay down $84 million in existing debt.

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SF Express earmarks $212 million for aircraft purchases in latest bond offer

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International express growth will moderate, but continue to outperform air cargo

UPS adds second leased 767-300BDSF

Related Posts

GA Telesis to further grow 737-800SF portfolio

Asiana finds buyer for stored 747-400BDSF

Polar’s Krepp joins Cargo Facts Asia cool chain panel

UPS adds second leased 767-300BDSF

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CARGO FACTS CONSULTING

CFC: Amazon air network spend exceeds $1B per year as dedicated fleet grows

Japanese air exports up in December and January, imports down

Follow Us