Finnair Plc, a 40% stakeholder in Finland-based all-cargo joint-venture carrier Nordic Global Airlines (NGA), said Nordic Global’s Board had decided to discontinue operations by the end of this month.
In the announcement, Finnair said that, since its formation in 2011, NGA, using a “low-cost and thin-organization model” had grown to fly to four continents. “But with overcapacity in the sector and depressed freight pricing, the cargo airline’s decision to cease operations was unavoidable.” Other stakeholders in the jv are Neff Capital Management LLC, Daken Capital Partners LLC and the Mutual Pension Insurance Company Ilmarinen.
The carrier’s four MD-11Fs (48512, 48513, 48542, 48546) are all in the process of being acquired by US-based Western Global Airlines, an all-cargo carrier controlled by Jim Neff, who is also the head of Neff Capital, and was President of Nordic Global Airlines. The transfers will bring Western Global’s MD-11F fleet to eleven units, all leased from Neff Capital. Of the eleven, many are parked, and it is not clear when they will enter service, although UK-based Network Airline Management recently announced it had signed a long-term ACMI contract with Western Global. Details were sparse, but the announcement did say: “Under the new contract Network Airline Management will manage three MD11Fs based at their European hub in Liege, Belgium and which will replace the MD11Fs previously leased from Nordic Global of Finland which ceases operations at the end of May 2015.”
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