CLA to halve fleet early next year
UK-based CargoLogicAir (CLA) will reduce its four-unit 747F fleet by two units next year, “because of the ongoing challenging market conditions,” according to a statement from the carrier.
The cuts are the latest prompted by the CLA’s parent, the Volga-Dnepr Group, which earlier this year launched a wide-stretching restructuring plan in an attempt to match cargo capacity with softening market demand.
A decision has yet to be made regarding which aircraft will be cut, but the carrier tells Cargo Facts it will start the process of evaluating potential buyers and discussing options with partners like AirBridgeCargo (ABC) as it works to winnow the fleet. For now, the entire fleet will be utilized through peak season – but in early 2020, two units will either end up parked, or in the fleet of another carrier.
At present, CargoLogicAir’s fleet comprises a 747-8F (60119) that was delivered new from Boeing in 2016, and a trio of used 747-400Fs. The carrier’s most recent addition was a 747-400F (35170) that was leased in October 2018. CargoLogicAir owns the 747-8F, and leases the rest of its fleet. Selling the 747-8F could be a useful strategy to free-up cash and reduce debt leverage for the carrier, particularly as it looks ahead to 777Fs.
CLA said that it aims to “grow the business again in the future.” Despite a reduced contingent of 747Fs, it could still be possible for the carrier to take on a slightly smaller platform such as the 777F. In June 2019, DAE Capital entered into a sale-and-leaseback agreement with Volga-Dnepr for three new 777Fs that it will lease to ABC. These three frames are part the order for nine finalized in June by Volga-Dnepr UK, stemming from a letter of intent signed by Volga-Dnepr Group, UK-based affiliate CargoLogicHolding and Boeing at the Farnborough International Airshow in 2018 for the purchase of up to twenty-nine 777Fs. Given the close ties between ABC, CLA and other
CLA and ABC are collectively reducing the number of scheduled flights they will offer from airports including Liège (LGG), Moscow Sheremetyevo (SVO) and Frankfurt (FRA).
