Saudi investment group lines up stake in Global Airlines

The investment, which sources familiar with the proposed deal told Arabian Aerospace, will enable Global to fund and accelerate its plans to acquire a fleet of four A380s. At present the carrier, which was founded by former investment banker James Asquith, has a single A380 which was previously operated by China Southern.

It is understood Global Airlines will modify its business model from concentrating on scheduled operations using its own brand to an ACMI model making it the world’s first A380 ACMI operator.

The switch in strategy comes as demand for widebody aircraft on short and medium term ACMI contracts is boosted following the delivery delays of new aircraft from Airbus and Boeing.

The three aircraft Global wants to acquire have already been identified and talks are underway to bring them into the airline’s fleet.

Riyadh-based Kingdom Holdings was founded in 1995 by HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, a member of the House of Saud, the ruling royal family of Saudi Arabia. It is listed on the Tadawul, the Saudi stock exchange.

Kingdom Holdings has a large, diversified investment portfolio, including a substantial stake in Flynas, the Saudi Arabian low-cost airline which recently launched an initial public offering.

Global, which currently has one A380 in its fleet operated by Portuguese wet lease partner Hi Fly, conducted its first commercial flight on 15 May flying from Glasgow to New York JFK.

This was a proof-of-concept charter flight with another from Manchester to JFK following on 21 May. The carrier is working with the UK CAA to gain its own Aircraft Operators Certificate.