Turkish carrier MNG looks to expand with SPAC listing proceeds

MNG Cargo Airlines, a Turkish logistics and transport company, is looking to use funds raised from a planned listing in New York to expand in the US and Europe and add to its fleet of nine Airbus planes. The freight specialist will seek to attract new customers with a range of end-to-end services beyond air transportation, including warehousing and handling, CEO Ali Sedat Ozkazanc said. The Istanbul-based group is looking to add one Airbus A321 jet, he added and will consider widebody planes. The executive declined to comment on the expected proceeds from the listing, which is being conducted via a merger with Golden Falcon Acquisition Corp., a special purpose acquisition company, or SPAC, led by European dealmakers Makram Azar and Scott Freidheim. More than 51% of the outstanding equity will remain with MNG’s Turkish founder and construction tycoon Mehmet Nazif Gunal’s Mapa Group conglomerate. While Ozkazanc talked up the rise in global e-commerce as a reason for the listing, MNG’s move to go public comes at an uncertain time for the industry. Airborne cargo deliveries are falling after an unprecedented surge at the height of the Covid-19 crisis, spurred by shipments of masks and vaccines, dislocated maritime flows, and a jump in online shopping. Freight volumes will probably decline 4% in 2023 following an estimated 8% slump this year, the IATA said last week, predicting a slide across all regions. Yields, or prices, that gained in 2022 are set to suffer a 22% reversal in the coming 12 months, it said.<br/>