From the Cockpit with Vaayu Group’s Emad Al Monayea

United Arab Emirates-Vaayu Group, a family-owned company with aviation businesses in Singapore and the U.S., will soon add the leasing of freighters to its growing list of specialties. As the launch customer for the first-of-its-kind A320 passenger-to-freighter aircraft, Vaayu plans to lease up to five A320P2Fs from ST Engineering. Delivery of the first aircraft (2737, ex-IndiGo) is expected in March, shortly after certification. [caption id="attachment_417299" align="alignright" width="380"] (Photo/Vaayu Group)[/caption] Cargo Facts sat down with Chairman and President Emad Al Monayea to discuss Vaayu’s entry into this new business venture. Cargo Facts: What kind of collaboration with ST Engineering have you had in the past? Emad Al Monayea : Our relationship with ST Engineering goes back a long time. At the time we started exchanging ideas with them about workshops, types of protocols and services. We even visited a couple of their facilities, whether it was in Singapore or in Texas. During this time a strategic relationship was formed and translated into Vaayu acquiring several of their assets in the U.S. In 2018, when they could see the value addition, dedication and investment that we provided to those assets, we began to discuss other topics in aviation. We started to discuss the conversion because we were seeing how the e-commerce industry was growing and how it was impacting various regions. After much discussion, we reached an understanding that we would be the launch customer for their first A320P2F. CF : Why did you decide to expand your portfolio into freighters? EAM : We have been looking into e-commerce for some time and at the potential of the sector. We started the project around 2017 but as you know the A320P2F program was launched back in 2011. From the beginning, we were clear that we wanted to focus on the A320P2F. CF : When considering the A320P2F and other freighter options, did you compare it with the 737? EAM : Absolutely, we looked at it, but because ST Engineering specializes in Airbus aircraft, we were more focused on Airbus. But yes, we also looked at Boeing. At one time we even investigated regional airlines. But as you know, most operators have started to specialize in a certain aircraft type and not with a combined fleet. Therefore, we decided to go with the A320. I think it is a natural fit for us. CF : After leasing the A320s from ST Engineering, do you plan to operate the freighters yourself or will you sublease them to your own customers? EAM : The objective is to sublease it to our own customers. We are moving into the leasing business. And one of the things we want to do for our leasing business is we want it to be focused on cargo. We want to take a different path in our business model. What we are saying is we understand the business a lot more intimately. CF : Do you have any customer commitments for the A320? Are you seeking a particular type of customer for the aircraft? EAM : We are targeting operators of the Airbus family. We have been approached by several airlines, from this region (EMEA), and from Asia and America. We are into the second round of communications and negotiations. There is much potential for leasing the A320 from us, but nothing has been defined. The target launch is the first quarter of 2022. That gives us a good opportunity to enhance our relationships with clients. We are thinking about this strategically. We want to make sure that it’s positioned in the right marketplace. That’s important because to a large extent, it is going to be competing with the 737-800. Plus, it’s going to be competing against other operators. First and foremost, this aircraft and the subsequent aircraft will be the first that we have, so this will mean a lot from a positioning perspective. Second, we also must narrow down the region in which this aircraft is placed, so that the final technical specifications can be done the way the customer wants. So, we’re taking a careful look at all customers. We want to have a longer-term partnership because this is an important positioning not only for us but for the actual platform as well. That’s why we are being extremely careful and taking some time to make sure we get the right points. CF : Do you have an idea of where you would like to place the aircraft? EAM : The objective is to see somebody who can operate the aircraft not only cross-border but regionally. The objective is to provide that additional last-mile capability for big operators who can fly the 747 or the 777, and from there they will go faster with the smaller but more efficient aircraft. It’s the first aircraft coming into the market and, if it succeeds in attracting more attention, that will enhance the future of the A320 conversion. This story originally appeared in the January 2022 issue of Cargo Facts. Cargo Facts EMEA will take place LIVE May 9-11 in Dubai. Learn more and register.

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