West Atlantic scores major new contract with Royal Mail

Sweden-based all-cargo carrier West Atlantic won a major expansion of its contract with the UK postal service Royal Mail. The company says the new contract “will increase Group revenue by approximately 25% annually.” The change is the result of strong package and parcel growth at Royal Mail, driven by its e-commerce customers.

Following a public procurement process during which Royal Mail conducted an evaluation of solutions designed to support its domestic air network in the UK, West Atlantic was selected to be the sole provider of aircraft capable of carrying between 8 and 21 tonnes. The new contract commences in January 2017. Prior to the award, West Atlantic operated two 737 300Fs and five ATP turboprop freighters for Royal Mail. Once the expanded contract is fully implemented, that will change to five 737-400Fs, four 737-300Fs, and three ATPFs – a massive increase, which Cargo Facts believes will require West Atlantic to quickly add several freighter-converted 737s to its fleet.