UAE's Maximus Air grounds its Airbus A300 fleet
Maximus Air announced the decision to ground its fleet of Airbus A300s with immediate effect today.
The decision was made by the board of directors of Maximus Air and Abu Dhabi Aviation. This will allow the company to focus on more lucrative sectors of its offerings.
The air cargo market has changed significantly and many airlines across the world are collectively feeling the results of global downturn. Passenger airlines have increased frequency, operating large aircraft with spare belly cargo capacity, and this has pushed down the yield negating the demand for 45 tonne payload aircraft in the Gulf market.
The decision came after careful evaluation, which indicated that current and future contracts are unlikely to cover the projected costs. This will mean that all existing operational contracts will be cancelled.
The A300 fleet will now be placed in storage awaiting the market to improve and will also be available for sale or dry lease.
Maximus anticipates a number of cost cutting and restructuring exercises in the months ahead. These moves will be necessary to strategically consolidate and take the company forward.
Fathi Buhazza, president and CEO of Maximus Air said, “This was not a decision taken lightly. It was a strategic decision taken in the best interests of Maximus Air. We firmly believe that transparency is key in such times and reflects the integrity of the company. It is difficult to let go of employees, especially when they have been an asset to Maximus Air, nonetheless we are confident that they will be an asset to another employer.”
Buhazza reinforced that other sectors of the airline’s offerings continued to perform well.
“Our charter service and in particular our Ukrainian fleet, continue to perform well and deliver good financial results. By focusing on our ad hoc business and on our core offerings safety, reliability and customer service we will be in the position to ensure prosperity for the airline in the years ahead.”