Modern Logistics’ Koga at Cargo Facts LATAM 2024

05/31/24 • 13 min

Brazil added its second 737NG freighter operator this year when Modern Logistics began flying the type, even as some of the country’s other carriers take on more Classics.

Modern Logistics is undergoing a transformation to grow its presence in the logistics industry.

“Part of this investment plan was to bring new aircraft,” Chief Executive Cristiano Koga said during a fireside chat at Cargo Facts LATAM 2024 in Panama City this month. Excerpts of this conversation are included in today’s episode of the “Cargo Facts Connect” podcast.

“We are very confident that the aircraft that we have signed and are already operating in Brazil will help us achieve this long-term goal to be an integrated logistics provider with a time-definite product end to end,” Koga notes in the chat.

Modern has leased two 737-800BCFs from BBAM, with the 2004-vintage unit 33566 arriving in October 2023 and its 2003-vintage sibling (33550) arriving in February 2024. They join one 737-400F (25374) and one 737-300F (24219).

“The performance of [the -800s] from a payload perspective, from a cost-to-serve-per-unit perspective is amazing,” Koga said. “So, we’re very excited about the fleet. But again, it needs to serve the right industry, the right sector and the right routes. That’s why one of the pillars of our long-term strategy is network planning.”

Even though Modern has phased out a 737-400F and a 737-300F, it still sees a use for them in at least the next six to twelve months.

“The -300 makes sense for specific projects, like charters or even e-commerce, because it’s the cheapest aircraft,” Koga said. “So, we still have the Classics, we have the two NGs, and it’s proving to be a very good decision to apply [the Classics] to these kinds of projects and leave the NGs for the big routes and international expansion as well.”

Countries at the top of the list to see Modern’s 737-800BCFs include Argentina, Chile and Colombia, he added.

Tune in to this week’s “Cargo Facts Connect” for the discussion with Koga.

Brazil added its second 737NG freighter operator this year when Modern Logistics began flying the type, even as some of the country’s other carriers take on more Classics.

Modern Logistics is undergoing a transformation to grow its presence in the logistics industry.

Even though Modern has phased out a 737-400F and a 737-300F, it still sees a use for them in at least the next six to twelve months.

Countries at the top of the list to see Modern’s 737-800BCFs include Argentina, Chile and Colombia, he added.

Tune in to this week’s “Cargo Facts Connect” for the discussion with Koga.

Previous Episode

Hamden Aviation discusses LatAm’s freighter appetite

Hamden Aviation is focusing on Latin America as it looks to grow its presence in the freighter segment.

The Hamden, Conn.-based lessor began supporting the industry by providing CFM56-3C1 engines to cargo operators with 737 Classics.

“It was just sort of an organic entry [into the freighter space] from the -3C1 market, then working with Classics, then having opportunities, primarily with a focus on emerging markets,” Executive Vice President Dora Alexander told Cargo Facts at Cargo Facts LATAM 2024 in Panama City this week.

Hamden hopes to increase its market share in Latin America and capitalize on the region’s demand for 737 Classic freighters.

“We believe the appetite is there,” Angel Mora, financial analyst at Hamden, says in this week’s episode of “Cargo Facts Connect.” “We’re talking about phasing into Classics and getting rid of the 727s, so there are still plenty of companies out there that are looking for Classics.”

Additionally, the lessor plans to add the ATR 72-500F to its freighter portfolio and is evaluating Embraer’s new E190F and E195F conversions.

“We think [the E-Jet platform] makes a lot of sense in terms of that replacement for the -300 and for that sector of the narrowbody,” Alexander says. “So, it really marries well with our relationships in emerging markets and our current lessee base as well as the international connections that we have.”

Tune in to this week’s “Cargo Facts Connect” to hear more on Hamden Aviation as Alexander and Mora speak with Cargo Facts Editor Jeff Lee in Panama City.

Next Episode

ATSG leadership on group’s new direction

ATSG is bullish about its growth strategy after a series of changes that culminated with Chief Executive Mike Berger’s appointment June 4.

As part of the leadership change, Jeffrey Dominick became ATSG’s president June 4 after more than seven years as a board member, bringing his Wall Street background to the role.

Dominick’s goal for 2024 is to help continue to position ATSG to evolve further, whether on the asset, customer or capital side, he told Cargo Facts during a visit this week to ATSG’s headquarters in Wilmington, Ohio (ILN).

“I’ve watched [the organization’s] growth evolve, and so in stepping into it right now, I’m excited for the opportunities when we move forward,” Dominick says in this week’s episode of “Cargo Facts Connect.”

“I think we all know how the company has grown with its different asset mix. It’s leasing as well as three airlines underneath. And as I step into it today, if I look at say, the rest of the year, we’re growing with our customers globally.”

ATSG’s leasing arm, CAM, is the largest freighter lessor and is headed by Todd France, who became president of CAM in April 2022 and was previously in other positions within the group.

CAM saw demand for its 767 freighters dip in 2023 and returns from some customers because of the softer market, but the lessor has also found new customers for its 767-300s, and demand for the -200s has “absolutely increased in the past twelve months,” France says.

“We’re placing multiple airplanes at multiple customers in multiple areas across the world,” France says. “So we continue to, in my mind, do a very good job at identifying that growth potential.”

Meanwhile, ATSG will soon place its first A330P2Fs and deliver more A321PCFs on lease, Dominick and France say.

Tune in to this week’s “Cargo Facts Connect” to hear more on ATSG and CAM as Dominick and France speak with Cargo Facts Editor Jeff Lee at ILN.