GlobalX Vice President – A321 Freighter Programs
Discusses Cargo Strategies
The market certainly welcomed the February 6th news that Global Crossing Airlines received FAA approval to launch cargo operations. February daily average trading volumes of more than 500 thousand shares (as of this writing) have increased by six times over daily January averages and ten times December averages. For a brief period following the news, the stock climbed above $1.60 USD / $2 CDN, did some consolidating in the $1.70 to $1.80 range and closed February 9th at $1.41 USD / $1.92 CDN. The stock was under $0.90 CDN just before the calendar flipped to 2023.
GlobalX is the first airline in the Americas to operate the Airbus A321F narrow body freighter. The company plans on taking delivery of another 5 to 8 this year, at least 9 more through 2024 and early 2025 until it reaches 25 freighters, which will ultimately equate to the number of passenger charter aircraft in the fleet.
To ensure it stayed well ahead of potential competition, long ago GlobalX locked up aircraft deliveries and passenger to freighter conversion slots. There are a myriad of strategic reasons for planning cargo fleet growth around the A321F and it all comes down to greater volume capacity and lower operating costs versus other freighters in the air (see slides below).
Locking up aircraft and conversions is one thing but securing contracts for an ever growing fleet is another art unto itself.
In early January, Glen Gates, who has a wealth of experience in creating and managing freight programs, joined the team as Vice-President A321 Freighter Programs.
Recently, Jeff Walker and Ken Hughes of The Howard Group sat down with Glen at GlobalX’s offices in Miami to discuss strategies around growing a successful cargo business.
In three parts, Glen first talks about:
His past experience, what type of cargo business GlobalX will pursue and, what types of contracts are advantageous for GlobalX.
Glen’s Bio:
Mr. Gates brings over 38 years of creating and managing profitable freighter revenue programs. In 1985, Glen launched a new cargo unit for Midway Airlines as Director Cargo Marketing and then worked for DHL Airways as Director Charter and Contract services for the cargo B727F and DC8F market. Glen also worked at Active Aero/USA Jet as VP Sales & Marketing, where he generated new business flying just-in-time auto parts to tier one manufacturing and automotive assembly plants throughout the U.S. Canada and Mexico. He later served as Director Global Charter Management Group, National Air Cargo.
Over the last 4.5 years, Glen has held ever increasing senior management level positions as Director, Senior Director and Vice President, with Amerijet where he was responsible for building the ACMI, CMI, on-demand and long-term track program cargo charter business. Additionally, Glen had responsibility for international commercial air mail and domestic/offshore for Point-to-Point and Ordering Agreement multi-year contracts with Postal organizations. Mr. Gates has a B.S. Air Commerce and Transportation Technology from Florida Institute of Technology College of Aeronautics.
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, European and Latin American markets. In 2023, GlobalX will enter ACMI cargo service flying the A321 freighter. For more information, please visit www.globalxair.com.
For more information, please contact:
Glen Gates, VP-A321F Programs
Email: glen.gates @globalxair.com
Tel: 916-844-9040
The Howard Group (HG) is not a registered investment advisor and as such, individuals should consult a registered investment advisor prior to making any investment decisions. The information presented was obtained from sources believed to be reliable but is not guaranteed, is not all conclusive and should not be relied upon as the sole source of information/opinion for making an investment decision. The Howard Group receives remuneration for Capital Market Communication activities and HG or its employees may own securities in client companies.