ST Engineering announced Thursday (19 May) the signing of a Letter of Intent by its Aviation Asset Management unit to lease up to five Airbus A321 Passenger-to-Freighter (P2F) aircraft to Global Crossing Airlines (GlobalX). As part of end-to-end Aviation Asset Management solutions, ST Engineering will also provide maintenance services to these aircraft for GlobalX over the period of the lease.
Subject to the signing of definitive agreements, ST Engineering will acquire the five Airbus A321 passenger aircraft on its own or through its joint venture companies, and finance these aircraft through a mix of equity and non-recourse debt. These aircraft will be converted and maintained at ST Engineering’s global facilities, with the first A321 aircraft to be converted in April 2022 and placed on lease in 4Q2022. The remaining four P2F aircraft will be converted and leased to GlobalX progressively.
ST Engineering announced last week that its wholly-owned aviation asset management unit has entered into an agreement with Temasek, Singapore’s government-run investment fund, to set up a 50-50 joint venture (JV) for freighter aircraft leasing. The JV will address the growing demand for freighter aircraft as e-commerce and air cargo volumes expand across the globe. The JV targets to build a portfolio valued at about US$600 million within five years, investing in passenger aircraft to be converted into highly efficient freighters. ST Engineering will provide the associated maintenance, repair and overhaul services to these aircraft. In addition, ST Engineering will be the asset and lease manager to the JV, consistent with the group’s aviation asset management business model.
“We are extraordinarily pleased and honoured to be working with ST Engineering on our fleet of A321P2F, which is a game-changer in the air freight industry. We look forward to working very closely with ST Engineering, a world-class solution provider in aircraft maintenance and freighter conversion, and subsequently in other ways as we grow GlobalX,” said Ed Wegel, chairman and CEO of GlobalX.
Yip Hin Meng, EVP/Head of Aviation Asset Management, ST Engineering, said, “We are delighted to be able to support GlobalX as they make their foray into the growing air freight market with our end-to-end Aviation Asset Management solutions. When working with ST Engineering, GlobalX can be assured of best-in-class solutions for these A321P2F aircraft’s entry into service and maintenance, all from a single life-cycle solution provider.”
GlobalX is a US 121 domestic flag and supplemental airline now in FAA certification using the Airbus A320 family aircraft. GlobalX has taken delivery of one A320 and one A321 aircraft as it prepares for revenue operations. 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.
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