Avion Aircraft Trading purchases seven Boeing 747-400

Avion Group, the global transportation solutions group, is pleased to announce the purchase of seven Boeing 747-400 aircraft (six passenger and one cargo aircraft) and four passenger to cargo conversion slots with Boeing.

Following these conversions, the five cargo aircraft will be operated by Air Atlanta Icelandic, (AAI), Avion Group’s ACMI operator. They will replace the older Boeing 747-200 Freighters in AAI’s fleet. The remaining two passenger 747-400s are to become part of ,the Travel City fleet, part of Excel Airways Group.

The value of the seven Boeing 747-400 and the four conversion slots is approximately $405 million and the purchase is to be financed through Avion Group equity and debt.

Six of the aircraft were purchased from All Nippon Airways (ANA) in Japan and one was purchased from Cargolux Airlines in Luxembourg.

Hafthor Hafsteinsson, CEO of AAI commented:

“These Boeing 747-400 Freighters are a great complement to the Boeing 747-200 Freighters we currently operate and will ultimately replace them due to their better performance. The passenger -400s will by the same token replace the -300s in our passenger operation. The Boeing 747-400 Freighter will be our future together with the eight new Boeing 777-200 Long Range Freighters with deliveries starting early 2009.”

AAI is the world’s largest ACMI (aircraft, crew, maintenance and insurance) service provider, offering tailor-made solutions to other carriers, both in the passenger and cargo industry.

The first B747-400BCF (Boeing Converted Freighter), is scheduled for redelivery from conversion in August 2007 with the remainder scheduled to be delivered in 2008, 2009 and 2010.

As part of AAI’s ongoing fleet renewal programme, one -400F will be delivered in October this year. This is AAI’s first full passenger to freighter -400 conversion and is currently being performed by IAI in Tel Aviv.

There is an increasing demand for the Boeing 747-400 Freighters. The B747-400BCF will be capable of flying 4,100 nautical miles (7,593 kilometers) with a full payload and market-preferred cargo load density. With a maximum takeoff weight of 870,000 pounds (394,625 kilograms), the B747-400BCF will have a revenue payload capability of 250,200 pounds (113,489 metric tons).

Boeing 747 freighters provide about half of the world’s freighter capacity. Boeing freighters of all models comprise more than 50 percent of the total worldwide freighter lift. Boeing forecasts that large widebody freighters (65 metric tons and above in capacity) will comprise 31 percent of the market by 2023.

About Avion Group

Avion Group is a global transportation solutions group founded on January 1, 2005. The company is organized into three business divisions -- Aviation Services, Charter & Leisure and Shipping & Logistics. Aviation Services consists of ACMI (Aircraft, Crew, Maintenance, Insurance) provider Air Atlanta Icelandic, maintenance provider Avia Technical Services and airport handling provider Southair. Charter & Leisure is represented by leisure service travel provider Excel Airways Group and TravelCity Direct. The Shipping and Logistics division is represented by Eimskip, the prime maritime transportation company in Iceland, with its fleet of 30 ships. In addition to the 30 vessels, there are currently 60 Boeing and Airbus aircraft in the fleet.

Avion Group employs close to 4,500 people at 85 operational bases worldwide.

Contact Information

Richard Darb

Buchanan Communications

Avion Group

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