Global Crossing Airlines Signs MOU with FreightCloud and Hudson Highland Partners for Asia-US-Americas Cargo Operations
Global Crossing Airlines Group (JETMF) announced a Memorandum of Understanding with FreightCloud and Hudson Highland Partners to develop e-commerce freight routes from China to the USA. FreightCloud, a major logistics provider, has successfully chartered over 3,000 flights, transporting 150,000 tons of cargo. The partnership will utilize GlobalX's A321 freighters starting Q1 2023 and later the A330 freighters. The agreements are pending regulatory approvals and documentation completion, indicating a significant move into the lucrative Asia-US cargo market.
- Signing of MOU with FreightCloud enhances GlobalX's position in the growing Asia-US cargo market.
- Utilization of both A321 and A330 freighters supports increased cargo capacity and operational expansion.
- Partnership and operations are subject to regulatory approvals, which could delay implementation.
- Dependence on external financing from Hudson Highland Partners introduces financial uncertainty.
MIAMI, June 13, 2022 (GLOBE NEWSWIRE) -- Global Crossing Airlines Group, Inc. (JET: NEO; JET.B: NEO; JETMF: OTCQB ) (the “Company” or “GlobalX”) is pleased to announce the signing of a Memorandum of Understanding (“MOU”) with FreightCloud, one of China’s leading e-commerce shipment logistics firms, and their financial partner Hudson Highland Partners, for the development of China to the USA e-commerce freight shipment routes, with further redistribution shipments within the Americas.
FreightCloud has chartered over 3,000 wide-body freighter flights from China to the US and Europe over the past two years, moving over 150,000 tons of cargo. With GlobalX, FreightCloud intends to develop an Asia-US cargo lane, using GlobalX A321 freighters to move cargo from hubs in Los Angeles, Chicago, and New York, throughout the Americas. Eventually, GlobalX will use its own A330 freighters to move cargo from Asia on behalf of FreightCloud. A321F flights for FreightCloud are expected to commence in Q1 2023, and A330F flights sometime in late 2023, in each case subject to FAA and DOT approvals.
“We are excited to enter into this partnership with FreightCloud, which will enable our cargo division, XCargo, to participate in the lucrative Asia to US cargo market, first with our narrowbody freighter fleet and eventually with our A330F fleet currently being planned. We are also delighted to team with Hudson Highland Partners, who will provide financing for this partnership," said Ed Wegel, Chair and CEO of GlobalX.
"We are especially pleased to be working with GlobalX on developing Asia to US air cargo opportunities and the ability to use their A321 freighter fleet to move cargo within the Americas. This helps to increase our cargo volumes and strengthen and expand our relationships with existing and new customers," said Robin Fu, CEO of FreightCloud.
The transactions with Freight Cloud and Hudson Highland Partners described in the MOU are subject to certain conditions including the completion of definitive documentation, receipt of regulatory approvals and completion of the FAA freighter certification process and all US DOT approvals.
About Global Crossing Airlines
GlobalX is a US 121 domestic flag and supplemental Airline flying the Airbus A320 family aircraft. GlobalX flies as a passenger ACMI and charter airline serving the US, Caribbean, and Latin American markets. In 2022, GlobalX will enter ACMI cargo service flying the A321 freighter, subject to DOT and FAA approvals. For more information, please visit www.globalxair.com.
About Freight Cloud
FreightCloud Supply Chain Limited is a comprehensive logistics company that provides complete logistics solutions to the global supply chain including international agents, domestic agents, couriers, and direct customers such as e-commerce platforms and manufacturers. Its services include domestic and offshore warehousing, logistics ERP, customs clearance and charter services. FreightCloud combines all these services in a seamless platform. The key geographies they cover include Asia (China, Hong Kong, and Vietnam), Europe, North America, and South America.
FreightCloud’s headquarters is located in Changsha, China with branches in Hong Kong, Shenzhen, Beijing, Belgium and Germany. FreightCloud has over 130 staff in total and in 2021, revenues reached
About Hudson Highland Partners
Hudson Highland Partners is a private equity investment vehicle dedicated to the acquisition of assets that it considers strategic to its overall macro theses and to its various corporate partners. Its areas of focus, among others, include technology (hardware and semiconductors), industrials, and specialty materials. Its founding partners include former executives from leading Asian conglomerates, as well as former senior-level professionals at global financial institutions. Hudson Highland Partners currently has over
For more information, please visit www.globalxair.com
For more information, please contact:
Ryan Goepel, EVP and CFO
Ryan.goepel@globalairlinesgroup.com
786-751-8503
or
Mark Salvador, Chief Marketing Officer
Mark.salvador@globalxair.com
786.751.8510
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain “forward looking statements” and “forward-looking information”, as defined under applicable United States and Canadian securities laws, concerning anticipated developments and events that may occur in the future. Forward-looking statements contained in this news release include, but are not limited to, statements with respect to the Company’s aircraft fleet size, the destinations that the Company intends to service, the number of and expected timing of delivery of freighter aircraft, the terms of and expectations with respect to the transaction with FreightCloud and Hudson Highland Partners, expectations for future capacity and the business of the Company.
In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "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 statements contained in this news release is based on certain factors and assumptions regarding, among other things, the receipt of financing to continue airline operations, the completion of definitive documentation for the transactions contemplated by the MOU, the accuracy, reliability and success of GlobalX’s business model; GlobalX’s ability to accurately forecast demand; the timely receipt of governmental approvals, including FAA and DOT; the success of airline operations of GlobalX; GlobalX’s ability to successfully enter new geographic markets; the legislative and regulatory environments of the jurisdictions where GlobalX will carry on business or have operations; the Company has or will have sufficient aircraft to provide the service; the impact of competition and the competitive response to GlobalX’s business strategy; the future price of fuel, 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 statements involve 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 statements. Such factors include risks related to, the ability to obtain financing at acceptable terms, the failure to conclude definitive agreements for the transactions contemplated in the MOU, the impact of general economic conditions, risks related to supply chain and labor disruptions, failure to retain or obtain sufficient aircraft, domestic and international airline industry conditions, the effects of increased competition from our market competitors and new market entrants, passenger demand being less than anticipated, 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, risks associated with doing business in foreign countries, the ability of management to implement GlobalX’s operational strategy, the ability to attract qualified management and staff, labor disputes, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits; risks related to significant disruption in, or breach in security of GlobalX’s information technology systems and resultant interruptions in service and any related impact on its reputation; and the additional risks identified in the "Risk Factors" section of the Company's reports and filings with applicable Canadian securities regulators and the U.S. Securities and Exchange Commission. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those described in the forward-looking statements, 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 statements. The forward-looking statements are 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 statements. If GlobalX does update one or more forward-looking statements, no inference should be made that it will make additional updates with respect to those or other forward-looking statements.
FAQ
What is the significance of the MOU signed by Global Crossing Airlines Group (JETMF)?
When are the cargo flights expected to start for GlobalX under the new MOU?
Who is FreightCloud in the context of the Global Crossing Airlines Group's announcement?
What challenges could affect the cargo operations of Global Crossing Airlines Group (JETMF)?
