On February 6th, Global Crossing Airlines Group (GlobalX) announced that it had received approval for its cargo operations. The airline plans to begin air cargo operations in addition to its expanding passenger operations this year. The charter airline intends to take advantage of the current air cargo demand by offering a more efficient air cargo alternative than most large air cargo operators. With this governmental approval, the airline is well on its way to launching such operations.

Operational approval

The approval comes from the US Federal Aviation Administration (FAA). The airline has noted that while it has received approval, it is still awaiting official documentation, which it anticipates will be delivered later this week. Now that the airline has received approval, it draws closer to the official launch of its cargo operations. Once it launches these operations, it anticipates it will quickly become profitable as it believes the market and routes it will serve are currently underserved by larger existing cargo airlines.

The Chair and CEO of GlobalX, Ed Wegel, shared the importance of this approval stating,

"This is a tremendously significant milestone for GlobalX on our path to being one of the leading narrow body charter operators for both passengers and freight in North America. Our expansion into cargo has always been a key aspect of our growth strategy to diversify our revenue streams and maximize the use of all of our assets,"

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Efficient freighter

The airline plans to use the Airbus A321 P2F for its cargo operations. This aircraft is an A321 which was previously used to haul passengers but has been converted to haul cargo. It plans to utilize the enhanced efficiency of the aircraft to its advantage as it will operate with larger profit margins than many existing cargo airlines. Its operations will have higher margins due to the added capacity the A321 brings over similar-sized aircraft.

The A321 P2F can hold 55% more containerized volume than the Boeing 737-800 freighter variant. It even supersedes the Boeing 757-200 by 14% in terms of capacity. It also burns 19% less fuel, making it more efficient and sustainable than the 757. Wegel has shared the company's enthusiasm for the new aircraft and that it will be the first airline in the US to operate it, saying,

"We are also particularly honored to be the first airline in the Americas to operate the A321F and we believe this aircraft is a game changer in the narrowbody freighter market and we thank ST Engineering for their total support during the conversion and delivery of this aircraft."

Growing fleet

GlobalX received its first A321 P2F in January and plans to receive its second in March. In May, it will receive its third P2F. By year's end, it will have received three more, bringing the total number received in 2023 to six. It will also receive two more in 2024 and is working to establish a leasing agreement for five more to be delivered between 2024 and 2025.

These are the airline existing plans for building its freighter fleet. Still, it plans to continue operational expansion throughout the decade and will likely add additional planes later. This rapid expansion is a part of the airline's post-pandemic expansion plans, in which it anticipates securing a significant portion of the growing air transit market. Last week, the airline secured a loan of $5 million to fund its airplane acquisitions and operational costs to support this rapid expansion.

What do you think of this approval? Let us know in the comments below.