Global Crossing Airlines Signs LOI for Ten (10) A321 Converted Freighters with Vallair

Global Crossing Airlines Inc. (JET: TSX-V) (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.

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.