GlobalX Airbus A320
The failure of Spirit Airlines has created “an attractive opportunity to acquire younger aircraft at attractive prices,” according to the president of U.S. passenger and cargo aircraft, crew, maintenance, and insurance (ACMI) provider Global Crossing Airlines (GlobalX).
During the last quarter, GlobalX agreed to purchase three ex-Spirit Airbus A320 airframes and lease the associated engines as it builds toward a year-end target of 25 aircraft in its fleet.
“We would be almost negligent if we didn’t pursue those aircraft today because that sets us up not just for quarters, but for years,” said Ryan Goepel, president and CFO of GlobalX.
While the airline continues to add capacity, it was also eager to buy the Spirit aircraft to lower the average age of its fleet and reduce the frequency of maintenance disruptions to its operations.
GlobalX is also investing heavily in spares inventory across its four U.S. bases to reduce downtime.
“One of the things that is really critical for us is that when aircraft need ... or a part needs to be replaced ... having parts available in those bases versus trying to source, ship and install [provides a big saving], because every hour these planes are down is a real cost to us,” Goepel said on an earnings call.
In the second quarter of this year, despite adding aircraft, GlobalX had only 15 available versus 17 a year earlier, due to five heavy and 16 non-heavy maintenance events. It has two more scheduled maintenance events in the third quarter, when the airline expects to have around 19 aircraft in service.
With scheduled heavy maintenance complete, GlobalX could have 23 aircraft in service by the end of the year, after receiving five A320s in the second half: the three ex-Spirit units and two more that were received over the summer and are currently undergoing conformity checks.
“We believe the five younger A320 aircraft entering service in the second half of the year will meaningfully improve our fleet’s age and reliability and reduce maintenance expenses over time,” said GlobalX Chairman Chris Jamroz. “That maintenance investment was necessary but temporary, and we now expect it to position GlobalX for near-full utilization of our target 25-aircraft fleet by year-end.”
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