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LAXintl
Topic Author
Posts: 24005
Joined: Wed May 24, 2000 12:12 pm

Chinese 747 Cargo Airline Sold For Less Then $1

Mon Jul 15, 2013 8:08 pm

51% of Chinese cargo airline Grandstar Cargo was acquired by domestic operator Uni-top Airlines for mere Rmb1, or $0.16.

Grandstar which was a joint venture with Korean Airlines and Sinotrans has been grounded since late 2011 and has a single 747-400F.

Uni-Top previously had expressed interest in acquiring a stake in Lufthansa Cargo's ill fated joint venture Jade International.

While it is not know what Uni-top plans for Grandstar are, it does currently utilize 3 747s for cargo flights from Wuhan to India, Japan, and Luxemburg.

The deal requires approval of Chinese aviation authorities before taking effect.

Story:
http://theloadstar.co.uk/uni-top-air...ty-grandstar-cargo-stake-for-0-16/

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mercure1
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RE: Chinese 747 Cargo Airline Sold For Less Then $1

Tue Jul 16, 2013 12:51 pm

If I knew I would have been ready to beat that offer with my €1.  

Interesting both Jade and Grandstar failed back to back even with outside expertise and investors.
mercure f-wtcc
 
KFlyer
Posts: 320
Joined: Mon Mar 19, 2007 1:05 pm

RE: Chinese 747 Cargo Airline Sold For Less Then $1

Tue Jul 16, 2013 2:29 pm

A company being sold for a symbolic amount often has huge debt or other liabilities. Does anybody know whether the 74F was owned by the airline ?
The opinions above are solely my own and do not express those of my employers or clients.
 
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neutrino
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RE: Chinese 747 Cargo Airline Sold For Less Then $1

Tue Jul 16, 2013 3:02 pm

Quoting mercure1 (Reply 1):
If I knew I would have been ready to beat that offer with my €1.

Ah, but that might - on second thought, will most definitely - come with a ton of debts attached.

Still, you could be a second Tony Fernandez and turn it around spectacularly.
He paid one Malaysian Ringgit or about USD 0.26 at the then exchange rate; bundled with debts of USD11million when he acquired the ailing airline in 2001.
From two planes to a current fleet of about ten dozen plus another 350 odd in the order books, that is some real success journey for you to emulate. 
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777ord
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RE: Chinese 747 Cargo Airline Sold For Less Then $1

Tue Jul 16, 2013 6:51 pm

I was going to say, I'm surprised no a.net armchair CEO didn't snatch that offer up!!!! :p
 
BryanG
Posts: 955
Joined: Tue May 18, 1999 2:59 am

RE: Chinese 747 Cargo Airline Sold For Less Then $1

Tue Jul 16, 2013 7:41 pm

They should've auctioned the airline on Ebay. The might have gotten as much as $30 or $40 that way.
 
Ronaldo747
Posts: 358
Joined: Sat Feb 14, 2009 4:58 pm

RE: Chinese 747 Cargo Airline Sold For Less Then $1

Tue Jul 16, 2013 8:08 pm

The 747 looks terrible, kind of derelict. What a shame  
 
bohica
Posts: 2417
Joined: Tue Feb 10, 2004 3:21 pm

RE: Chinese 747 Cargo Airline Sold For Less Then $1

Tue Jul 16, 2013 8:09 pm

Sounds too good to be true.

Quoting KFlyer (Reply 2):
huge debt or other liabilities

It is. I'll pass.
 
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LAXintl
Topic Author
Posts: 24005
Joined: Wed May 24, 2000 12:12 pm

RE: Chinese 747 Cargo Airline Sold For Less Then $1

Tue Jul 16, 2013 10:14 pm

Quoting KFlyer (Reply 2):
A company being sold for a symbolic amount often has huge debt or other liabilities.

Yes the carrier had some $97m in debt however much of it was to be liquidated according to Chinese equity restructuring rules which allowed under the liquidation sale.

Quoting KFlyer (Reply 2):
Does anybody know whether the 74F was owned by the airline ?

Yes the single 744F B-2427 (msn 26401) does belong to the carrier. It was KE's portion of the investment for startup back in 2008.


I think this purchase was more a strategic one by Uni-Top bringing another operating certificate, aircraft and potential traffic rights with the deal.
From the desert to the sea, to all of Southern California
 
Newark727
Posts: 1563
Joined: Tue Dec 29, 2009 6:42 pm

RE: Chinese 747 Cargo Airline Sold For Less Then $1

Tue Jul 16, 2013 11:41 pm

Sounds like mixed fortunes for Chinese cargo airlines... is it just the terrible worldwide freight market?
 
BestWestern
Posts: 8346
Joined: Fri Sep 08, 2000 8:46 pm

RE: Chinese 747 Cargo Airline Sold For Less Then $1

Wed Jul 17, 2013 12:28 am

A Jade 744 has sat in Shenzhen the since Christmas 2011, moving probably less than 1km in that period from the cargo terminal to a parking area beside the new, yet to be opened, terminal back early last summer.

I can only imagine the deterioration over the past 19 months in the heat and humidity of the pearl river delta.
Greetings from Hong Kong.... a subsidiary of China Inc.
 
bill142
Posts: 7864
Joined: Wed Aug 04, 2004 1:50 pm

RE: Chinese 747 Cargo Airline Sold For Less Then $1

Wed Jul 17, 2013 1:06 am

Quoting 777ord (Reply 4):
I was going to say, I'm surprised no a.net armchair CEO didn't snatch that offer up!!!! :p

They'd have paid, double or triple the price. Then they would have immediately ordered 100 77Ws because its the right aircraft for the job.     
 
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ssteve
Posts: 1379
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RE: Chinese 747 Cargo Airline Sold For Less Then $1

Wed Jul 17, 2013 2:22 am

Quoting BestWestern (Reply 10):
A Jade 744 has sat in Shenzhen the since Christmas 2011

Interestingly enough, a google search on Jade led me to this article about an attempted Uni-Top lifeline for Jade a little over a month ago:
http://cargofacts.net/profiles/blogs/jade-cargo-to-be-liquidated

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