Miami, Florida--(Newsfile Corp. - October 20, 2020) - Global Crossing Airlines Inc. (TSXV: JET) (the "Company" or "GlobalX") has signed an LOI with Vallair, the mature aircraft and asset specialist based in Luxembourg, (and launch lessor for the Airbus A321 freighter conversion or A321F), to lease ten converted A321 freighter aircraft. This deal represents the most significant transaction to convert A321s to freighter to take place within the air cargo industry.
Figure 1
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The first GlobalX A321 will be delivered by the third quarter of 2021. GlobalX expects all ten (10) A321F aircraft to be delivered and in revenue operation by the second quarter of 2023.
The COVID-19 pandemic has seen a surge in market demand for air cargo as operators struggle to fulfill the ever-increasing requirements of e-commerce. The A321F is the ideal candidate to satisfy this need due to the availability of feedstock, with around 1,100 aircraft manufactured, and younger Airbus technologies utilized by the aircraft resulting in a fuel efficient, environmentally friendly freighter variant. The A321F is the best aircraft type, based on range, payload capability and operating cost to satisfy the need for additional narrow body freighter aircraft. On average, Vallair expects operators to see a 20% reduction in fuel burn per payload.
"This is a unique deal undertaken by Vallair, and we are excited to be entering into partnership with GlobalX," says Alistair Dibisceglia, Chief Leasing Officer at Vallair. "The A321F is proving to be the aircraft of choice for cargo operators world-wide. As well as offering a higher volumetric capacity, the lower cargo hold on the A321F allows for the transit of ten containers in addition to the fourteen cargo positions available on the upper cargo deck. This ability to offer containerized cargo is a real selling point for the A321F as it increases efficiency by reducing turn-around times and facilitates the weight and balance calculations."
Gregoire Lebigot CEO of Vallair, commented, "The focus of this deal for Vallair has been to make the air cargo capacity available in the Americas and we are trusting that the very experienced management of GlobalX will be successful to maximize this opportunity. It is our intention that by providing the cargo capacity to a Miami based operator, we can pave the way for freight forwarders in Northern, Southern and Central America to meet the ever rising market demands for air cargo."
"We are excited to sign this LOI with Vallair, and believe they are the perfect partner for us as we enter the cargo sector," says Ed Wegel, CEO of GlobalX. "This is an unparalleled opportunity, and we are uniquely positioned to maximise the potential. Over the next six months, we intend to secure aircraft contracts for both our current and future needs through to the end of 2022 and in agreeing this lease, Vallair has enabled us to achieve this - certainly from a freighter perspective. Our focus has always been on utilizing the efficiencies of A320 family aircraft and these pioneering A321 conversions by Vallair have allowed us to extend this to our cargo capability. We are excited for the future and look forward a mutually beneficial partnership."
The letter of intent is subject to certain conditions including the completion of definitive documentation, receipt of regulatory approvals and completion of the FAA certification process and all US DOT approvals.
About Global Crossing Airlines
GlobalX is a new entrant airline now in FAA certification using the Airbus A320 family aircraft. Subject to FAA and DOT approvals, GlobalX intends to fly as an ACMI and wet lease charter airline serving the US, Caribbean and Latin American markets.
For more information please visit https://www.globalairlinesgroup.com/
About Vallair
Vallair provides integrated support for mature aircraft, engines and major components. Seven complementary business units are founded upon engineering excellence: trading & leasing, cargo conversions, component support, aircraft MRO, engines, aerostructures & painting, and aircraft disassembly. These offer aircraft operators and owners worldwide cost-effective solutions to extend the life of their assets or dispose of them in an economically beneficial and environmentally acceptable way.
Vallair is a leading player in the trading and leasing of A320 family, ATR and B737 aircraft and has been engaged in cargo conversions since 2015 and this ground-breaking agreement with GlobalX will see the Company take its pioneering A321 freighter programme to the next level.
Vallair signed its first LOI for the A321F in August 2019 with Qantas Freight and saw the maiden flight of its prototype A321F take to the skies in February 2020. The partnership with Global X will be a testament to Vallair's expertise and experience, as a lessor and within the cargo conversion sector, with Global X's commitment to expansion and progression as an ACMI leader especially in the U.S.
For more information please visit www.vallair.aero
For additional information, please contact:
Ryan Goepel
EVP and CFO
Ryan.goepel@globalxair.com
305-869-4780 or
Vallair Contact:
leasing-trading@vallair.aero
VALLAIR
EBBC Bloc B, 6 rue de Trèves; L-2633 Senningerberg G/D of Luxembourg +(352) 2610 3967
or
Jeff Walker
Vice President
The Howard Group Inc.
Email: jeff@howardgroupinc.com
Tel: 403.221-0915
Toll Free: 1-888-221-0915
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" concerning anticipated developments and events that may occur in the future. Forward-looking information contained in this news release includes, but is not limited to, statements with respect to the Company's intention to fly as an ACMI and wet lease charter airline, the terms of the transaction with Vallair, the number of aircraft to be leased, the timelines for delivery and revenue operations, the benefits of the A321, the timeline to secure aircraft contracts and the Company's cargo capabilities.
In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or " or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the receipt of financing to commence airline operations, the accuracy, reliability and success of GlobalX's business model; the timely receipt of governmental approvals; the timely commencement of operations by GlobalX and the success of such operations; the legislative and regulatory environments of the jurisdictions where GlobalX will carry on business or have operations; the impact of competition and the competitive response to GlobalX's business strategy; and the availability of aircraft. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks related to, the ability to obtain financing at acceptable terms, the impact of general economic conditions, domestic and international airline industry conditions, the impact of the global uncertainty created by COVID-19, future relations with shareholders, volatility of fuel prices, increases in operating costs, terrorism, pandemics, natural disasters, currency fluctuations, interest rates, risks specific to the airline industry, the ability of management to implement GlobalX's operational strategy, the ability to attract qualified management and staff, labour disputes, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits; the completion of definitive agreements with Valliar and the additional risks identified in the "Risk Factors" section of the Company's reports and filings with applicable Canadian securities regulators. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update any forward-looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.
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