CargoLogicAir’s stock at Amsterdam Schiphol Airport (AMS) in the Netherlands and Hahn Airport (HHN) in Germany is expected to be sold by the end of 2024 as administrators work to finalize the affairs of the now-defunct UK-based freighter airline.
According to the latest six-month progress report from CargoLogicAir’s joint administrator, Buchler Phillips, valuation agents Lambert Smith Hampton (LSH) are targeting the sale of stock at both airports by the year’s end. The decision to sell comes as storage costs continue to accumulate for the airline’s assets.
LSH confirmed in a report on November 15, 2024, that it plans to sell the stock at Schiphol for USD 390,000 plus VAT. However, the sale’s net benefit is expected to be reduced due to ongoing storage costs, which amount to €15,000 per month. LSH is also negotiating with the airport on rent terms to minimize costs further.
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The stock at Hahn Airport is set to be sold for an estimated USD 200,000-225,000, with storage costs at the German airport set to reach around €53,000.
In addition to the assets in the Netherlands and Germany, CargoLogicAir’s stock at East Midlands Airport (EMA) in the UK is also being sold. An offer of $385,000 plus VAT has been confirmed for the EMA stock, according to the latest update.
At its peak, CargoLogicAir operated a fleet of four Boeing 747 freighters. However, by December 2019, it had retired one 747-400F and one 747-8F from its fleet, according to fleet tracking data from Planespotters.
The airline, which entered administration in 2022, suspended operations after sanctions related to the ongoing conflict in Ukraine prevented it from flying to European Union and US destinations. Further complicating matters, CargoLogicAir’s ultimate beneficial owner, Alexey Isaykin, was later added to the UK sanctions list due to his connection to the war.
The administration period for CargoLogicAir was extended in October 2023 until November 16, 2025, as administrators faced significant challenges accessing the airline’s records and creating bank accounts because of the sanctions. Buchler Phillips has also encountered difficulties accessing Microsoft’s cloud services, which the company cited as a major setback in its efforts to manage the administration. However, following legal action, Microsoft Ireland Operations Limited (MIOL) has begun engaging with the administrators.
Debt recovery is ongoing, with Buchler Phillips having secured over £41,000 from three debtors to date. An additional £206,000 is expected from other debtors. The airline’s pension contributions have been completed, and the pension scheme has now been closed.
