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Centurion Air Cargo faces legal battle over fuel payments as market dims


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By Alex Lennane

09.04.2014 · Posted in Air, LOADSTAR

 

The future of Centurion Air Cargo, the Miami-based Latin American specialist, appears to be in doubt following a series of lawsuits filed against it by fuel supplier Chemoil Corp.

 

While flights are continuing to operate, according to flight tracking websites (albeit not necessarily according to the published schedules), Chemoil claims that it is owed $12.9m, and has issued 11 lawsuits – one each for nine MD-11Fs and two for 747-400Fs, operated by Centurion and its partner SkyLease.

 

According to the South Florida Business Journal, Chemoil filed mechanic liens in April, which would prevent Centurion from selling the aircraft until the debt was paid. Centurion told Cargo Facts in April that it was planning to retire its entire MD-11F fleet over the next two to three years and replace it with 747-400Fs. Centurion’s fleet has an average age of 18 years, while SkyLease’s is 21 years.

But Chemoil escalated the legal problems by filing a new challenge, which forces the airlines to auction the aircraft unless the bill is paid. The bills vary on each aircraft from $345,477 to $2.2m, according to the report.

 

However, according to airline fleet databases, the majority of Centurion’s operational fleet is on operating lease – not owned, which questions the value of Chemoil’s claim. Some MD-11Fs in SkyLease’s fleet appear to be owned – but one source indicated that there was not much of a market for the aircraft at the moment, suggesting that the aircraft’s value lay in the engines, “plus maybe $500,000 per aircraft”.

 

Centurion has faced increased competition in the last year, with players such as Atlas Air eating into the Latin American market. According to the Bureau of Transportation Statistics, in the year-to-date, Centurion has seen cargo revenue ton miles fall by 30% over 2013.

 

Centurion’s Schiphol office, where it has its European hub, told The Loadstar that it had no comment. But one source familiar with the carrier said he wouldn’t underestimate Alfonso Rey, Centurion’s owner, who earlier this year sold his Miami Beach island house for $29m.

 

“He is a very shrewd player, he will get out of [any problems]…and he has a lot of personal wealth.”

 

In March, Centurion’s president Ian Morgan quit, to take up a position at Qatar Airways Cargo. In a letter to staff at the time, seen by The Loadstar, Mr Rey intimated that he expected to see close ties between Mr Morgan’s new employer and Centurion, although there is no public record of this happening.

 

Navegador.

 

 

 

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Nobres,

 

Muito provavelmente, mais uma ‘Maindeck’ vai prá glória, segundo as informações a seguir:

 

More law suits filed against Centurion Air Cargo and carrier’s future doubtful

By Alex Lennane

09.12.2014 · Posted in Air, Loadstar posts Add to favorites

 

 

Speculation over the future of Centurion is mounting after five more lawsuits have been filed against the airline by its lessor, AWAS.

 

At the end of August, five statutory trusts based in Ireland, one for each of five aircraft, filed a claim that Centurion owes $10.2m in lease payments.

 

AWAS, through its subsidiary Pegasus Aircraft Finance Co (PAFCO), has issued claims in the Florida Southern District Court in Miami against Centurion for debts on one B747-400F and four MD-11Fs.

 

Three of the four MD-11Fs, according to flight tracking websites, have not flown since September 6, while the fourth has not flown in the past four months. But the 747-400 was in Amsterdam yesterday and flew to Brazil today.

 

The action doesn’t appear to affect Centurion affiliate Sky Lease (formerly TradeWinds), according to legal records, despite media reports suggesting both airlines were named. Sky Lease has three MD-11Fs currently operating, while two have not been flown since June and August.

 

AWAS claims that Centurion has refused to return its aircraft.

 

Centurion is tied up in several legal cases at the moment. On August 26, Starr Indemnity and Liability, an insurance and investment company, also filed a lawsuit, against Centurion and an airline called AirMax Cargo, which operates 767s between Lima and Miami.

 

While on August 4, AGC, which appears to be an MRO outfit, also filed a case against Centurion.

 

These new cases follow Chemoil’s legal action against Centurion and Sky Lease for unpaid fuel bills valued at $12.9m. It filed 11 lawsuits against nine MD-11Fs and two 747-400Fs, requiring the airlines to auction the aircraft to pay the bills.

 

One source indicated that the millionaire owner of Centurion and Sky Lease, Alphonso Rey, may be preparing to close Centurion and focus on Sky Lease instead. No one answered the phone at Centurion yesterday and there was no response to an email to the sales team in Miami.

 

Centurion’s other lessor, AerCap, said it couldn’t comment on individual customers.

 

Navegador.

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A Centurion já patina nas finanças há muitos anos.

 

As fornecedoras de combustível sempre foram meio céticas com a Centurion justamente pela análise de crédito não muito favorável da empresa.

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