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. How major? West Atlantic says the new contract “will increase Group revenue by approximately 25% annually.”

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 8-21 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. The change is the result of strong package and parcel growth at Royal Mail, driven by its e-commerce customers.

The West Atlantic fleet currently includes three 767-200Fs, five 737-400Fs, six 737-300Fs, thirty-three ATPFs, and two CRJ200Fs. These freighters are operated by its subsidiary carriers Atlantic Airlines and West Atlantic Sweden, mostly in support of integrators and postal services in Europe. Since its fleet is already fully deployed, Cargo Facts expects West Atlantic will quickly have to add several freighter-converted 737s.