Jettainer Collaboration & Potential AirBridgeCargo Takeover: A Busy Week For Etihad Cargo

Etihad Airways

IATA/ICAO Code:

EY/ETD

Airline Type:

Full Service Carrier

Hub(s):

Abu Dhabi International Airport

Year Founded:

2003

CEO:

Tony Douglas

Country:

United Arab Emirates

Etihad Cargo, the air freight division of Etihad Airways, is in talks to take over beleaguered Russian cargo carrier AirBridgeCargo. Etihad Cargo has also extended its partnership with unit load device (ULD) management firm Jettainer to cap off a busy week.

Etihad Cargo could take over AirBridgeCargo

Etihad Cargo is mulling over a deal that would see it take on Russian cargo airline AirBridgeCargo's fleet and staff. AirBridgeCargo, part of the Volga-Dnepr Group, has been forced to shut down operations in light of sanctions placed on Russian-owned entities earlier this year.

Etihad Cargo will seek to acquire AirBridgeCargo's fleet of 16 Boeing 747 freighters - 12 Boeing 747-8Fs and four Boeing 747-400Fs - along with its staff. A revenue-sharing agreement is likely but only if it is in line with sanctions.

The majority of AirBridgeCargo's fleet is on lease with six different aviation lessors. Etihad plans to obtain the entire fleet through new leasing agreements, an arrangement that would appeal to lessors who have struggled to repossess aircraft stuck in Russia.

GettyImages-1228962945 AirBridgeCargo Volga-Dnepr Boeing B747

AirBridgeCargo has 16 Boeing 747Fs that could find a new home at Etihad. Photo: Getty Images

Any deal with AirBridgeCargo would be politically sensitive given the situation in Ukraine, while current economic sanctions on Russia also make it a legal minefield. One likely workaround would involve Volga-Dnepr Group’s former European GSA, AirFreight Logistics, established as a new entity to handle sales.

The majority of AirBridgeCargo staff are believed to have relocated to the UAE already, following a trend of Russian companies moving their teams to the country.

One AirBridgeCargo employee told The Loadstar,

"We are an extremely creative company, but anything we do has to be clean. It cannot be dirty, it must be legal. We have lots of working groups to try to find solutions, and we are in discussions with lessors. But it’s going to take a while to figure out what we can do."

Five more years with Jettainer

Etihad Cargo has also signed a five-year contract with Jettainer, extending their long partnership which began in 2011.

The agreement will see Jettainer digitalize the Etihad Cargo ULD fleet with Bluetooth low energy (BLE) tags, enabling greater operational efficiency and automation.

Thomas Schürmann, Head of Cargo Operations and Delivery at Etihad Cargo, said,

"Despite the challenges the air freight and cargo sectors have faced due to the COVID-19 pandemic, Etihad Cargo has continued to grow and evolve. It has been critical for us to work with partners who understand our objectives and can help us achieve our ambitious targets. The Jettainer team has been offering us reliable and innovative services around the clock to meet our needs for over ten years now."

Jettainer is a unit load device (ULD) management provider owned by the Lufthansa Group. The company has 14 offices and 60 repair shops across the globe and works with several notable carriers, including American Airlines Cargo, Delta Cargo and Lufthansa plus subsidiaries.

Thorsten Riekert, Chief Sales Officer at Jettainer, added,

"It’s important to us that we embrace innovation and digitalization. That’s why we are equipping our customers’ ULD fleets with tracking technology where it is meaningful. That is exactly what we have seen at Etihad Cargo."