Bulgarian MRO ETG Maintenance is one of four companies involved in the new venture.
Four aviation companies from Europe and the Middle East have established a new group that will target capability synergies to capitalize on the recovering global industry.
Announced Thursday (Feb. 23), Tel Aviv-headquartered Vector Group has been established by shareholders from four entities: Bulgarian charter carrier Electra Airways, Israeli-Maltese airline Classic Air, Bulgaria-based MRO provider ETG Maintenance and Irish lessor Maverick Horizon.
The move, according to Effi Grunwald, who will hold dual roles of CEO of Vector Group along with Classic Air, is for the quartet to tap into synergies and benefit from one another’s capabilities.
“Vector Group is a vertically integrated group, and the reason for the strategic decision behind the integration it is to build a strong aviation business structure in Europe, whose companies benefit from the synergetic effect of the different capabilities,” he says. “Each of the four companies has been working for a long time in the aviation industry but being part of the group will strengthen their position on the market.”
Maverick Horizon, based in Drogheda, Ireland, will focus on acquiring mid-life Airbus A320 Family aircraft. Meanwhile, ETG Maintenance, which operates from the city of Varna near Bulgaria’s Black Sea, will perform heavy maintenance checks on Boeing and Airbus narrowbody aircraft and aims to grow its third-party customer base in future.
For the airline participants, Electra Airways is acting as a capacity provider in ACMI and the charter market and will work with Classic Air—the core company of the venture.
Grunwald will be joined at Vector Group by Itzik Goren, who will serve as executive director and co-owner. He also holds a role as a legal advisor at Classic Air.
In addition, Vector Group has received investment from Aurum Group, the investment arm of Israeli billionaire entrepreneur Morris Kahn. “Their investment will help bolster Vector’s footprint and capabilities, and allow us to enhance our growth,” adds Grunwald.
