Afcom Holdings Limited, operating as Afcom (Chennai), has secured two Boeing 737-800(BCF) aircraft on dry leases for eight years, according to a draft prospectus filed with the Securities and Exchange Board of India. This move is part of the cargo operator’s plans for capital raising through a share issuance.
The two aircraft, VT-AFO (msn 28617) and VT-AFC (msn 30160), were sourced from Spectre Air Capital. VT-AFO, a 24.34-year-old aircraft, previously operated by Yakutia Airlines (R3, Yakutsk) until 2022, underwent conversion in Guangzhou last year and has been in storage at Hyderabad International since September. VT-AFC, aged 24.03 years, formerly flew for Azur Air (ZF, Krasnoyarsk Yemelyanovo) and was converted in Jinan before being ferried to Hyderabad in October, where it also remains in storage.
Before acquiring its own aircraft, Afcom relied on other operators, such as Asia Cargo Airlines (GM, Jakarta Halim) and Airmark Indonesia Aviation (Jakarta Halim), which provided B737-400 aircraft on a “quasi charter basis.” The prospectus highlights that the Airport Authority of India has allocated nine overnight parking spots at Chennai Airport for Afcom.
Afcom plans to issue 6,840,000 shares with a face value of INR10 (USD0.12) each. The final issue price is yet to be determined. The raised capital will be used for fleet and network expansion, upgrading safety standards and quality, and improving operational efficiencies.
However, there are reports of Afcom experiencing financial difficulties, including delays in paying pilots and vendors. As of February 29, 2024, the company employed ten captains, six first officers, three transition captains, and two trainee first officers, who reportedly have not been paid since the start of the year. ch-aviation has contacted Afcom for comment.
