Strategic Restructuring Completed in Partnership with and Support of Company Stakeholders
Company to Continue Serving Customers with Updated Fleet
MIAMI, Jan. 10, 2024 /PRNewswire/ -- Amerijet International Airlines, a leading provider of global air cargo services, announced today that it has completed a successful financial & operational restructuring to enhance the Company's capital structure and support go-forward operations. The consensual restructuring transaction includes (i) the return of six B757 aircraft to lessors, (ii) modifications to our go-forward obligations on the B767 fleet, and (iii) a $55 million capital infusion from its existing lenders. In concert with the restructuring are a set of strategic and operational initiatives, including utilizing an all-B767 fleet with a reduced non-pilot headcount that is aligned with the right-sized fleet and current business demand.
"With this restructuring, Amerijet is now in a stronger operating and financial position to serve its customers for the long term with the quality of service they have come to expect. The current air cargo environment demands agility and disciplined operational excellence. This definitive action will protect our position as the cargo carrier of choice in our markets," said Joe Mozzali, Chief Executive Officer of Amerijet. "We are pleased that we were able to complete this restructuring with the support of our investors and lessors. Our ability to execute this transaction consensually is a strong signal of the strength of our brand, the commitment of our employees and the significant opportunities ahead for Amerijet. These strategic actions have strengthened the Company's financial foundation, ensuring its scheduled service, and contract flights will continue to operate as usual."
Amerijet has continued to serve all its existing customers with safe, and reliable service. On time performance in the December quarter end was 94.8% for our contract business while our core scheduled service segment achieved a 97.5% completion factor, a 2% year-over-year improvement. We thank the entire Amerijet team, including our pilots, aircraft maintenance technicians, and operational teams for delivering a strong peak season performance. Despite a difficult demand environment, Amerijet's December quarter 2023 airfreight volumes in its core scheduled service segment increased 8% versus 2022 and 3% versus the December quarter end for the pandemic year of 2020. The 8% growth in scheduled service volumes was achieved with 10% less flown block hours as Amerijet continues to execute its network optimization strategy. These strong service levels have propelled recent customer wins including a new contract operating four weekly frequencies between Bogotá and Miami as well a new multi-year contract transporting a global integrator's express and cargo volumes in Central America and the Caribbean.
Amerijet is represented in this matter by Sidley Austin LLP as legal counsel, FTI Consulting as financial advisor, and FTI Capital Advisors as investment banker.
About Amerijet
With 50 years of experience in the air cargo industry, Amerijet operates a dedicated fleet of freighters from its primary hub at the Miami International Airport to destinations throughout the Caribbean, Mexico, the Americas, Europe, and Asia. The company provides approximately 450 million Available Tonne Kilometers (ATKs) of freight capacity throughout its scheduled service region annually. Amerijet's portfolio of worldwide scheduled as well as long and short-term contracted charter services provide seamless and transparent transportation solutions for a variety of customers across many industries.
More information about Amerijet is available at www.amerijet.com.
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