Chilean cargo carrier LanChile Cargo has acquired 73.3% of its Brazilian counterpart Aerolinhas Brasileira SA (ABSA) in a deal valued at $2.1 million. ABSA flies a single Douglas DC-8-61F from São Paulo with international services to Colombia, the USA and Venezuela, as well as domestic routes. One of Brazil's newest cargo airlines, ABSA registered 2000 revenues of $25 million and logged a 37% increase in its operations.
LanChile Cargo's ABSA buy will allow network expansion. Alvaro Carril, LanChile Cargo's sales and marketing vice-president says short-term plans for ABSA include transferring one of his airline's Boeing 767-300Fs (left) to fly new routes to Colombia, Peru and possibly Europe.
Following the inauguration of LanChile Cargo's $60 million Miami cargo terminal, the ABSA buy furthers the Chilean company's objectives to be the leading cargo airline between North and South America. LanChile Cargo intends to enlist a strategic partner within the next three years, and plans to further its business by acquiring other Latin American cargo carriers and establishing freight terminals in Argentina.
Source: Flight International