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Bain-Titan US$1b JV reflects major shift to lift volumes through e-commerce

THE joint venture between Bain Capital and Titan Aviation is likely to take aim at the e-commerce market given that Bain invested US$360 million in the project and Titan $40 million to build a portfolio of aircraft worth $1 billion, reported London's Air Cargo News

12 January 2020 - 19:00

THE joint venture between Bain Capital and Titan Aviation is likely to take aim at the e-commerce market given that Bain invested US$360 million in the project and Titan $40 million to build a portfolio of aircraft worth $1 billion, reported London's Air Cargo News.

Atlas Air Worldwide-owned Titan will also provide aircraft- and lease-management services to the venture.



Transport Intelligence practice leader Thomas Cullen said that the deal demonstrated the air cargo market's faith in e-commerce as the traditional market remains 'uninspiring'.



'The joint venture appears to be very much a funding platform for Titan Aviation which is already an established leaser of freighter aircraft,' said Mr Cullen.



'Finance companies are awash with capital because they are able to borrow at very low rates, so there is a lot of money looking for a home. However, it is still worth noting that Bain is willing to invest so heavily in the market for freighter aircraft.'



'What this joint venture aims to exploit is not the conventional cargo aircraft market but the air express services supporting e-retailing, of which Titan's parent company Atlas is a significant provider, notably to Amazon,' added Mr Cullen.



'The air freight sector is reflecting the sorts of changes seen elsewhere in the logistics economy, such as in warehousing or express. There is a bifurcation between the internet-driven economy and the conventional economy, especially in consumer facing activities.



'This is complimented by a number of dynamic specialist sectors that demand high-performance services on a global level. Therefore, it is probably reasonable to say that the old air freight market is dying and a quite distinct, new structure is in the process of being born.'


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