US’s GLOBALX tentatively granted charter authority

The US Department of Transportation (DOT) is set to grant GLOBALX (GXA, Miami Int’l) authority to conduct charter flights after it issued a show-cause order to that effect.

Following a lengthy application process in which Global Crossing Airlines, Inc., trading as GLOBALX, was asked to clarify its complex ownership structures, the DOT said it found the start-up fit, willing, and able to conduct interstate and foreign charter air transportation of persons, property, and mail as a US certificated air carrier. The DOT also granted a GLOBALX request to shorten the answer period to the filing of objections to its order from 14 calendar days to 7 business days as of July 23.

GLOBALX intends to operate charter flights from its hub in Miami, Florida, to points in Latin America, Cuba, and the Caribbean, and conduct sports and casino charters under an ACMI agreement, wherein it will provide the ACMI while the charterer will pay for, among other things, fuel, landing fees, and ground handling expenses. The company plans to operate two aircraft initially – one A320-200 and one A321-200 – both parked at Miami Int’l. It is currently completing its air carrier certification drive with the Federal Aviation Administration (FAA).

To help shoulder its initial start-up costs, parent firm Global Group has entered into a share subscription agreement with GEM Global Yield LLC SCS, a private investment group based in Luxembourg, in which GEM will provide up to USD78.25 million to Global Group over a three-year period in exchange for shares in Global Group. Global Group had drawn down approximately USD502,493 of the GEM funding as of May 19, 2021.