GECAS fuels Kargo Xpress growth with 737-800BCF pair

Malaysia-based Kargo Xpress has agreed to lease a pair of 737-800BCFs from GECAS [FATs 006521-6522].

The deal is the latest in a string of GECAS 737-800BCF lease agreements with new and existing operators. The lessor told Cargo Facts that Kargo Xpress is not one of the two unidentified operators to which it will lease two 737-800BCFs each by the end of September.

GECAS confirmed to Cargo Facts that the pair of aircraft are the 2007-vintage units 34267 and 34966 (both ex-GOL), which went to Jinan (TNA) in May and Shanghai (PVG) in August 2021 for conversion, respectively.

The lessor expects to deliver the two 737-800BCFs to Kargo Xpress in October and December 2021, according to a press release.

Kargo Xpress, which is targeting rapidly growing cross-border e-commerce opportunities, forecasts receiving up to seven aircraft by the end of next year, including the GECAS-leased pair. The startup carrier launched by M Jets International earlier this year had previously expressed an interest in adding 737NGs to its single 737-400F (26605, ex-Connect Cargo), which entered service in June. At the time, Kargo Xpress told Cargo Facts it was planning to add two 737-800Fs in the fourth quarter of 2021 but had not identified aircraft or a lessor.

While additional 737NG freighters are in the cards, Kargo Express is also looking at 767-300Fs.  However, given the tight supply of 767-300 conversion slots expected through 2022, it’s unclear where those aircraft might be sourced.

As Kargo Xpress’ fleet grows, the carrier plans to expand service to international destinations in Indonesia, the Philippines, China and Hong Kong. For now, the carrier utilizes its sole 737-400F for flights connecting Kuching (KCH), Kota Kinabalu (BKI) and Macau (MFM) from its Kuala Lumpur (KUL) hub.

GECAS has now placed almost forty 737-800BCFs on lease, and has a total of more than seventy firm conversion orders and options.

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