ASL Aviation Holdings, a provider of dedicated charter cargo transport for Amazon Air, FedEx and DHL, has acquired Australian airline Pionair and will supply it with larger freighters than previously operated to help capture more express parcel and e-commerce business.
Dublin-based ASL Group operates airlines in Ireland, Belgium, France and the United Kingdom, as well as a low-cost passenger airline in South Africa, Quikjet Cargo Airlines in India and a joint venture express delivery airline in Thailand. Pionair will be renamed ASL Airlines Australia.
The investment gives Pionair the resources to grow its cargo fleet and services.
“Expansion into the Australian and Oceania markets was a logical step for ASL as we develop our services globally to meet the needs of our customers,” said ASL Aviation Holdings Chief Executive Dave Andrew in Monday’s announcement.
Pionair provides contract transportation for passenger and cargo airlines in Australia, New Zealand and the Pacific Islands with a dozen aircraft. The fleet includes several short- to medium-range BAe146 convertible airliners in which seats can quickly be added or removed depending on whether passengers or containers are to be carried. Since 2016, Pionair has operated cargo aircraft for TNT/FedEx (NYSE: FDX), first as a subcontractor to Virgin Australia and now through Qantas.
Qantas is also a major provider of domestic airlift for Australia Post.
ASL Aviation said it will allocate a Boeing 737-800 converted freighter to Pionair to increase its capabilities. ASL is halfway through a five-year fleet renewal program that includes reservations with Boeing for production slots to convert 40 used 737-800 passenger jets to full-time freighters.
ASL Aviation has more than 140 aircraft ranging from ATR72-600 turboprops to Boeing 747 jumbo jets and operates the largest 737-800 freighter fleet in the world. The 737-800 can carry more than 26 tons of freight on medium-haul routes and is 15% more efficient than older 737 versions.
Australia is the eleventh largest e-commerce market in the world. Online sales are estimated to reach $43 billion this year and grow at a 10.4% compound annual rate through 2027, according to Statista. Many sales are generated in China.
ASL said the deal meets all regulatory requirements and is effective immediately.
Click here for more FreightWaves stories by Eric Kulisch.
Amazon Air lands in India
Amazon contractor ASL Aviation orders more Boeing 737-800 converted freighters