European Cargo Limited recently closed a significant minority equity investment by Priority 1 Logistics Holdings LLC, a newly-formed subsidiary of U.S.-based Priority 1 Holdings LLC.
Proceeds of the investment will be used to eliminate third-party debt, convert EAL’s A340 fleet to full cargo freighters, acquire additional aircraft, complete heavy maintenance checks, and pay shareholder dividends, says the release.
Paul Stoddart, Chairman of ECL, commented: “This is a major step forward in the growth of European Cargo. We have positioned our airline to provide our valued freight customers with a reliable air bridge to meet the increasing demand for air freight.
“The investment by Priority 1 into ECL will help us continue to build a sustainable, successful, and profitable business following one of the most difficult periods in aviation history due to COVID-19.
“This partnership with Priority 1 provides us with additional financial resources as well as deep commercial aviation expertise, which will increase our capacity and ensure that we meet our rapidly accelerating customer demands.”