Global Crossing Airlines Inducts First A321 for Cargo Conversion and Outlines Near Term Fleet and Growth Plans

Rhea-AI Summary

Global Crossing Airlines Inc. (JETMF) has commenced the conversion of its first A321 aircraft into a freighter, collaborating with Hong Kong Engineering Company Limited. This aircraft is part of a fleet expansion plan that includes the leasing of three A320s and a fourth A320 under letter of intent. CEO Ed Wegel highlighted the anticipated growth in charter demand and the successful receipt of Foreign Air Operator Certificates in Canada and Mexico. Additionally, the company has issued 220,000 restricted stock units to select directors and officers.

Positive

• Commencement of the A321 freighter conversion, highlighting fleet expansion.
• Lease agreements for three additional A320 aircraft to meet growing charter demand.
• Receipt of Foreign Air Operator Certificates in Canada and Mexico, enabling broader operational scope.

Negative

• None.

MIAMI, Nov. 01, 2021 (GLOBE NEWSWIRE) -- Global Crossing Airlines Inc. (JET: TSX-V; JET.B: TSX-V; JETMF: OTCQB) (the “Company” or “GlobalX”) is pleased to announce that its first A321 passenger to freighter aircraft has entered the first phase of conversion at Hong Kong Engineering Company Limited (“HAECO”) in Lake City Florida. Following a period of heavy maintenance at HAECO, the aircraft will be inducted in January 2022 into the 321 Precision Conversions (“Precision”) facility near Orlando for cargo conversion. This aircraft is the first of four A321 units from Greenwich Highland Aviation, LLC (“GHA”) to be converted and leased to GlobalX.

GlobalX’s fleet development plans for the balance of 2021 include the delivery of three A320’s, one on lease from Irish-based lessor Genesis Aircraft Services Ltd., and two leased from FTAI Aviation LLC., a wholly owned subsidiary of Fortress Transportation and Infrastructure Investors LLC. A fourth A320 is also under LOI for delivery in late December 2021, with the definitive lease agreement expected to be concluded soon.

“We are delighted our first A321 is starting its conversion process to freighter for expected delivery to us in July 2022. We look forward to working with Greenwich Highland Aviation and 321 Precision Conversions on this four aircraft fleet program. We are also excited about our growth plan in A320 passenger aircraft to meet the increasing charter demand in the US, particularly with our recent receipt of our Foreign Air Operator Certificates in Canada and Mexico,” said Ed Wegel, Chair and CEO of GlobalX.

All aircraft under LOI are subject to conclusion of definitive agreement. GlobalX also announces that it has granted 220,000 restricted stock units to certain directors and officers of GlobalX.

About Global Crossing Airlines

GlobalX is a US 121 domestic flag and supplemental airline flying the Airbus A320 family aircraft. GlobalX flies as an ACMI and wet lease charter airline serving the US, Caribbean, and Latin American markets. For more information, please visit www.globalxair.com. 

For more information, please contact:

Ryan Goepel, EVP and CFO
ryan.goepel@globalxair.com
Tel: 786.751.8503

Or

Tracie Gunion, Investor Relations
Email: tracie.gunion@globalxair.com
Tel: 786.793.5424

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 acquisition of aircraft by the Company, the size of the Company’s aircraft fleet and expected delivery dates.

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, conclusion of definitive agreements for aircraft that under LOI, 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, the impact of general economic conditions, domestic and international airline industry conditions, the failure to conclude definitive agreements for aircrafts that are under LOI, supply chain disruptions causing delays in the Company’s expected timelines, 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 licenses and permits; 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. 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.

 

FAQ

What is the significance of Global Crossing Airlines converting the A321 aircraft?

The conversion of the A321 aircraft to freighter is a strategic move to expand Global Crossing Airlines' cargo capacity and meet increasing demand.

How many A320 aircraft is Global Crossing Airlines acquiring?

Global Crossing Airlines is acquiring three A320 aircraft and has a fourth under a letter of intent.

When is the first A321 expected to be delivered after conversion?

The first A321 is expected to be delivered in July 2022 after completion of its conversion.

What operational licenses has Global Crossing Airlines obtained?

Global Crossing Airlines has received Foreign Air Operator Certificates in Canada and Mexico, enhancing its operational capabilities.

What are the details of the stock units granted by Global Crossing Airlines?

Global Crossing Airlines has granted 220,000 restricted stock units to certain directors and officers as part of its incentive plans.