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A deal by ASL Airlines Australia to buy collapsed New Zealand freight carrier Airwork looks to have fallen through.
In their latest report, Airwork receivers Calibre Group noted that the conditional agreement with ASL, announced in May, had not proceeded, with the business now expected to be sold in the first quarter of 2027.
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“During the reporting period the receivers have continued to trade the business as usual while concurrently undertaking a sale process for the Airwork Group’s freight business and assets in New Zealand and Australia,” the receivers wrote.
“At the date of this report the sale process for the freight business is ongoing. The sale process has continued longer than initially anticipated, as a conditional agreement entered into to sell the business did not complete. We now expect the sale process to conclude in the next reporting period.
“In this period, across the Airwork Group we have concluded the sale of 10 surplus engines generating NZD$5 million. Other assets are currently under contract. We anticipate realisation of assets surplus to the freight operations will extend beyond the end of the next reporting period.”
According to Calibre Partners, Airwork is “one of the largest Aircraft, Crew, Maintenance and Insurance freighter operators in Australia and New Zealand”, having been founded in 1936, with the company incorporated in 1984.
In their first report last September, the receivers said the company had entered receivership owing around NZ$145 million to creditors, after “defaults occurred under the relevant loan facilities”.
“The Airwork Group faced financial difficulties due to the loss of five leased aircraft in Russia following the Russian invasion of Ukraine, leading to loss of revenue and significant asset impairments. An insurance claim is being actively pursued in respect of the loss of these aircraft,” they wrote.
“[It also faced] challenging trading conditions due to the loss of customers, most recently as a result of concerns about the Group’s financial stability; and debt levels that were unsustainable.”
The receivers have continued business-as-usual trading since their appointment, while selling off surplus assets.
ASL Airlines Australia, formerly Pionair, is based at Bankstown Airport and offers passenger and cargo charter and wet-leasing services across Australia, New Zealand and the Pacific Islands. Ireland-based ASL Aviation Holdings bought and rebranded Pionair in 2023.
ASL Airlines Australia has been contacted for comment.
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