E-commerce the key driver of air freight JV

The joint venture between Bain Capital and Titan Aviation announced at the end of last year is expected to take aim at the e-commerce market and also reflects a changing air cargo market. The joint venture deal will see Bain invest $360 m of equity in the project while Titan will put in $40 m as they attempt to build a portfolio of aircraft worth around $1bn.

Atlas Air Worldwide-owned Titan will also provide aircraft- and lease-management services to the venture.

The deal demonstrates the air cargo market’s faith in e-commerce. What this joint venture aims to exploit is the air express services supporting e-retailing, of which Titan’s parent company Atlas is a significant provider, notably to Amazon, said a report.

Source : Various Agencies