Gemini Air Cargo is to purchase LTU's four Boeing MD-11s for conversion to freighters, to operate alongside its growing fleet of McDonnell Douglas DC-10-30s.
The US-based all-cargo supplemental carrier has signed a letter of intent to purchase the four aircraft from LTU, with deliveries beginning at the end of 1998. Sources close to the transaction say that Gemini's deal for the four Pratt & Whitney PW4460-powered aircraft is worth between $270 and $290 million, including the spare engines, parts and freighter conversion. The aircraft are between four and six years old.
LTU, which announced in July that it would replace its 408-seat MD-11s in 1998 with two Boeing 757s and one 767-300ER to rationalise its fleet, confirms that it is in final sale negotiations, but will not disclose the buyer.
Gemini will place the first two MD-11Fs into service in early 1999 following conversion, with the second pair arriving by the middle of the year. It is in discussion with Aeronavali and Boeing about conversion of the aircraft.
The two year-old carrier operates seven Aeronavali-converted DC-10-30 freighters and has recently acquired an eighth, ex-Finnair, aircraft from GE Capital Aviation Services. Gemini holds a further four options for conversions by Aeronavali which could be applied to the MD-11s. The company operates one DC-10 each for Qantas (on a transpacific operation from Los Angeles), Challenge Air Cargo (from Miami to Latin America) and FedEx (from Newark to Miami, Santiago and Sao Paulo). In addition, two DC-10s are operated for Swisscargo, the cargo arm of Swissair and another pair on Gemini's own scheduled services to Seoul, South Korea, from the USA.
Before the acquisition, Gemini is known to have consulted clients about the MD-11F, including Swisscargo and Korean Air Cargo. Gemini is also gearing up to compete against Boeing 747-200 freighter wet lessors such as Atlas Air with its MD-11Fs, a type which is claimed to offer significant economies in crewing and fuel-efficiency terms, as well as superior payload-range capabilities, at ACMI (aircraft, crew, maintenance and insurance) wet lease rates similar to that of the 747-200F.
Source: Flight International
