Western Global Airlines set to change business structure

Western Global Airlines (KD, Fort Myers Southwest Florida) is planning to convert its business structure from a Florida-based Limited Liability Company (LLC) to a Delaware-based corporation. The cargo specialist said the request to the US Department of Transportation (DOT) is pursuant to the formation of an employee stock ownership plan (ESOP) wherein staff will be partially remunerated with airline stock. “The essential purpose of the ESOP is that employees, over time, will gain equity in their employer and a valuable retirement benefit share of Western Global stock, while the current owners will receive fair market value for a portion of their interest in the company,” it said. The airline, therefore, asked the DOT to either reissue its certificate of public convenience and necessity or transfer the existing certificates to the newly incorporated Western Global Airlines, Inc. It underlined that the organisational change would not take place unless the DOT consents to the change or reissuance of its licences. “Western Global Airlines, Inc. will succeed to all of the assets, liabilities and business of Western Global Airlines, LLC. The airline will continue to be headquartered at the same Estero, Florida, location it has occupied for several years, and to engage in the same cargo air transportation business it has operated since beginning operations,” the airline added. Western Global Airlines hopes to complete the transfer of a minority stake to the ESOP by October 15, 2020. It did not reveal the exact stake the ESOP will take but underlined it would be “substantial but minority”. It added that it was unlikely for any single employee to ever own more than 1% of the airline’s stock through the ESOP. The carrier operates two B747-400(BCF)s, one B747-400(FSCD), and fourteen MD-11(F)s.