Category Archives: MNG Airlines

MNG Airlines signs agreement to go public on the New York Stock Exchange

MNG Airlines made this announcement:

MNG Airlines is a global logistics provider and e-commerce enabler, servicing over 15,000 corporate customers across 41 countries through over 3,500 flights per year
Recently announced financials for the third quarter ended September 30, 2022 reflected last twelve months (LTM) revenue grew by 39% year over year to $353 million, net income of $61 million and Adjusted EBITDA¹ of $116 million (33% margin)
The transaction is expected to have a pro-forma enterprise value of $676 million, assuming minimum gross transaction proceeds of $30 million, implying a 5.8x multiple on LTM Adjusted EBITDA as of 30 September 2022

MNG Havayollari ve Tasimacilik A.S. (MNG Airlines), a global logistics provider and e-commerce enabler, has entered into a definitive agreement to become publicly traded via a business combination with Golden Falcon Acquisition Corp. (“Golden Falcon”) (NYSE: GFX), a special purpose acquisition company. The transaction is expected to close in the first half of 2023, after which MNGA will be listed on the New York Stock Exchange (the “NYSE”) under the new ticker symbol “MNGA”. As a public company, MNGA is expected to gain increased financial flexibility, and to be well positioned to unlock new growth avenues and maximize value creation.

“We see significant value creation potential from becoming a publicly listed company in the U.S., with the expectation that it will enable transformative commercial agreements, create an acquisition currency, and align management incentives with shareholders.”

Investment Highlights

A Global Logistics Provider and E-Commerce Enabler
- 25 years of operating experience with flights to 41 countries on 4 continents
Sector Tailwinds Due to Increasing Demand Combined with Supply-Side Constraints
- E-commerce tailwinds, an increasing focus on supply chain security, and a need for larger and more efficient dedicated freighter capacity
- Global air freight has historically grown at more than 3x global GDP growth (1973-2019)²
- Express air cargo market is forecasted to grow at 5% per year, 1.8x the rate of general cargo (2019-2041)³
Established Track Record, with Close Partnerships and Longstanding Ongoing Contracts
- 20+ year commercial relationships with some of the largest global logistics providers, airlines, freight forwarders and e-commerce operators, across Europe, the U.S. and Asia
Strategically Based in One of the Largest and Fastest-Growing Air Cargo Markets Globally
- Air transport freight has increased in the region at ~10x the global rate, growing at a CAGR of 23% from 2009 to 2019 (vs. 2% worldwide)⁴
Multiple Potential Growth Levers including E-Commerce Integration, Expanded Network and Increasing Penetration in Key Markets Through Vertical Integration
- MNGA e-Commerce revenue grew to $82 million in the last twelve months ended 30 September 2022, from zero in 2020
- Ability to expand warehouse operations in key destinations such as the EU and the U.S.
Barriers to Entry Driven by Slots Guaranteed at Some of the Most Desirable Airports Globally
- Including in the U.S., China, Germany, United Kingdom, France, the Netherlands, Spain, and Israel
Operational Excellence Evidenced by Multiple Awards from Airbus and Governmental Agencies
- Consistent outperformance of global benchmarks for dispatch reliability every year over the past decade for both A300s and A330s
Approved supplier to leading authorities such as the U.N., NATO, and U.S. military and non-military organizations, accredited by IATA (International Air Transport Association) and ISO (International Organization for Standards), and multiple awards from Airbus over the past two decades
Executive Team with 185+ Years’ Experience, Including 70+ Years with MNGA and 35+ Years with MAPA Group, the Long-Term Single Shareholder

Financial Highlights

For the three months ended 30 September 2022, the Company’s revenue grew by 47% year-on-year to $90 million, net income of $26 million and Adjusted EBITDA⁵ of $27 million (30% margin). Last twelve months⁶ revenue grew by 39% year-on-year to $353 million, net income of $61 million and Adjusted EBITDA of $116 million (33% margin). Adjusted EBITDA margin for the last twelve months has improved by 400 basis points as compared with 2019, and revenue has grown at a 37% compound annual growth rate during this period.

The Company’s business model has four complementary segments: Scheduled & Block Space, Charter, ACMI⁷, and Warehouse & Handling. The Company’s cost base is mostly variable, with COGS (cost of goods sold) representing 95% of its overall cost base in 2021. Company contracts have limited exposure to fuel costs, which are either 100% pass-through to the end customer (for charter flights and ACMI) or updated every two weeks (for scheduled flights). Revenues are generated in USD, EUR and GBP, collectively accounting for 98% of the total. The Company has been net income-positive for the last 10 years. The Company has net debt⁸ of $25 million as of 30 September 2022.

Transaction Overview

The transaction is expected to have a pro-forma enterprise value of $676 million, assuming minimum gross transaction proceeds of $30 million, implying a 5.8x multiple on LTM Adjusted EBITDA as of 30 September 2022.

All references to available cash from the trust account and retained transaction proceeds are subject to any redemptions by the public stockholders of Golden Falcon. The Company benefits from significant positive cash flow generation and a capex-light business model, being able to organically fund its growth plans. Its current business plan is fully funded regardless of transaction proceeds. Net proceeds from the transaction will therefore be distributed to the Company’s existing shareholders, who are expected to continue to retain a significant stake in the Company.

The Golden Falcon management team screened over 500 potential targets since its IPO in December 2020. Prior to executing the Business Combination Agreement with MNGA, the Golden Falcon team conducted extensive due diligence throughout the course of the past ten months, supported by its advisor UBS Investment Bank. In order to closely align incentives with the Company and existing shareholders, the Golden Falcon team has agreed to subject over 90% of sponsor shares received as merger consideration to a vesting schedule.

The proposed business combination, which has been unanimously approved by both the Board of Directors of Golden Falcon and the Board of Directors of MNGA, is expected to close in the first half of 2023, subject to approval by Golden Falcon’s stockholders and other customary closing conditions.

Go deeper: Here is the investor presentation:

CLICK HERE

Top Copyright Photo: MNG Airlines-DHL (Solinair) Airbus A300B4-622R (F) S5-ABO (msn 756) (DHL colors) BSL (Ton Jochems). Image: 951247.

MNG Airlines aircraft photo gallery:

MNG Airlines celebrates its 25th anniversary with a special livery

MNG Airlines, which was established 25 years ago, aims to make Turkey stand out in the air cargo industry with its successful operations to all continents of the world.

With the mini-documentary released on November 30 (below), the anniversary of its first flight, tells the success story of a quarter-century with its employees.

MNG Airlines, which was established 25 years ago, first started to serve with scheduled cargo flights to Germany and England. Its business model is focused on providing flexible and solution-oriented services to its customer by offering scheduled and charter flights, cargo & ground handling, warehouse services as well as national/international road transportation services. MNG Airlines left behind 25 successful years as Turkey’s first private air cargo company. With vision of continuous improvement, MNG Airlines determines sustainability as a priority and says GoGreen.

For the 25^th anniversary of its first flight on November 30, MNG Airlines produced the mini-documentary about mysterious anniversary special livery.

MNG AIrlines aircraft photo gallery:

Video:

MNG Airlines gets its second A330-300 P2F

MNG Airlines has made this announcement:

MNG Airlines, which holds a significant share of the air cargo industry in Turkey, is looking to use its experience to expand its services and flight network. After having converted Turkey’s first passenger-to-freighter (P2F) aircraft last year, MNG Airlines has completed the conversion of its second aircraft and TC-MCN is ready to take the skies again with a much higher structural and volumetric payload capacity.

MNG Airlines, which was established 25 years ago, holds a significant share of the air cargo industry in Turkey. In addition to its scheduled flight network, MNG Airlines makes a valuable contribution to the air cargo industry by offering customized services that include flight, cargo, ground handling and warehousing services. Now, MNG Airlines aims to make Turkey stand out in the air cargo market with its fleet of 9 wide body aircraft.

With vision of continuous improvement, MNG Airlines was the first Turkish company to invest in the acquisition and convertion of the A330 aircraft into freighters in December 2020. Turkey’s first converted A330-300P2F left Elbe Flugzeugwerke GmbH (EFW) facility in November, 2021 and joined the MNG Airlines’ fleet as TC-MCM. Since then, it has completed nearly 3000 flight hours and carried over 12000 tons of cargo in the last 9 months to maintain a sustainable network between China-Türkiye and Europe. The second A330-300, TC-MCN was sent to EFW for the same P2F conversion process. The passenger-to-freighter conversion took 7 months from February to September 2022. TC-MCN is already scheduled to begin commercial operations in mid September.

MNG Airlines aircraft photo gallery:

MNG Airlines continues its fleet modernization

MNG Airlines, which holds a significant share of the air cargo sector in Turkey, accelerated its fleet modernization efforts last year. The company invested in acquiring and converting two Airbus A330-300 aircraft in order to increase loading capacity and reduce the company’s carbon footprint. Last year, MNG Airlines added Turkey’s first passenger to freighter (P2F) aircraft, Airbus A330-300P2F, to its fleet. In February, the second A330-300 aircraft was positioned to Germany for conversion.

MNG Airlines, which was established 25 years ago, holds a significant share of the air cargo industry in Turkey with its fleet of 9 wide body aircraft. In addition to its scheduled flight network, MNG Airlines makes a valuable difference in air cargo industry by offering tailor made services which include flight, cargo & ground handling and also warehouse services. To meet the demands of different customers they believes in continuous improvement. Now, MNG Airlines aims to highlight Turkey in the air cargo market and expand its service and flight network with its experience.

MNG Airlines was the first Turkish company to invest in acquisition and conversion of the A330 aircraft into freighter in 2020 December. With its 61 tons of payload capacity, A330-300P2F aircraft has higher structural and volumetric capacity than their older generation aircraft and A330s are known to have reduced carbon footprint. Turkey’s first converted A330-300P2F departed from Elbe Flugzeugwerke GmbH (EFW) Dresden facility on November 17th, 2021 after seven month of conversion and joined the MNG Airlines’ fleet as TC-MCM. Since then, it has made numerous flights and carried tons of cargo efficiently. The second A330-300, TC-MCN, aircraft was sent off to Dresden, Germany for another conversion starting in February 2022.

The conversion process consists of five main phases. Passenger cabin is stripped off completely, fuselage and floor structure are reinforced, passenger doors and windows are plugged, a new wide cargo door is installed and all remaining systems are adapted to this new configuration. At the end, comprehensive tests of all systems are carried out. Sedat Özkazanç, General Manager of MNG Airlines, said, “I am delighted to send our second A330-300 aircraft to Dresden, Germany for conversion. As MNG Airlines, we increase our loading capacity on a “kg” basis every year with a focus on customer satisfaction and flight safety. I am proud on behalf of our country to be the first company in Turkey to invest in conversion project which will reduce our carbon footprint. I believe this number will increase every year with the expansion of our flight network and new aircraft joining our fleet. We are working on transformation plans for 2024 and beyond with our expanding flight network and growing cargo capacity.

Top Copyright Photo: MNG Airlines Cargo Airbus A330-243F TC-MCZ (msn 1332) AMS (Ton Jochems). Image: 928897.

MNG Airlines aircraft slide show:

MNG Airlines aircraft photo gallery:

MNG Airlines signs contract for Passenger-to-Freighter (P2F) conversion of two Airbus A330-300 aircraft

MNG Airlines has entered into a contract with Elbe Flugzeugwerke GmbH (EFW), joint venture of ST Engineering and Airbus, for the Passenger-to-Freighter (P2F) conversion of two Airbus A330-300 aircraft. The first A330 aircraft was inducted for conversion on 1 April, while conversion for the second aircraft will commence in 2022. Conversions will be carried out at EFW’s facility in Dresden, Germany.

Photo: A330 of MNG Airlines at EFW, Dresden Germany, in preparation for slot in for P2F freighter conversion (source: EFW)

With these two A330-300P2F conversion freighters, MNG Airlines will add further capacity to its network, complementing its current Airbus aircraft fleet of four converted A300-600RF and one factory-produced A330-200F. The A330-300P2F provides best-in-class versatility and about 23% more volume than its closest competitor Boeing 767-300ER. Depending on the weight variants, the conversion freighter can offer a gross payload of up to 63 tonnes per flight and a range capability of up to 3600nm.

MNG Airlines started its operations in 1997. It is the only private Turkish company offering international cargo flight services to/from Germany, UK, Netherlands, Italy, France, Iraq, Lebanon, Egypt and Algeria.

MNG Airlines customers:

MNG Airlines aircraft slide show:

MNG Airlines orders two Airbus A330-300 freighter conversions from EFW

A330 of MNG Airlines at EFW, Dresden Germany,
in preparation for slot in for P2F freighter conversion (source: EFW)

MNG Airlines started its activities in 1996, serving customers in Europe, Middle East and Africa. Depending on customers’ needs, MNG Airlines is able to carry both express and general cargo.

MNG Airlines aircraft photo gallery:

MNG Airlines aircraft slide show:

MNG Airlines takes delivery of its first Airbus A330-200F freighter

MNG Airlines (Istanbul) yesterday (August 30) took delivery of its first (of four) Airbus A330-200F freighter. The airline already operates a fleet of seven Airbus A300 cargo aircraft, and will expand its services by moving up to the A330 freighter.

MNG Airlines: