Underside of a white cargo airplane

Hey there, dreamers and future investors! We’re diving into the world of air cargo, where opportunities are knocking louder than ever. Andy Popovich, the brains behind Ventus, an investment powerhouse, is feeling the vibes. He says, “We love the market right now.” And who wouldn’t, right?

Picture this: a market with great potential and low rates, where deals are waiting to be made. Andy believes air cargo is our golden ticket to creating value and driving the industry forward. As he puts it, “When there is ‘blood on the street,’ you can do deals.”
Jos Jacobsen, the cool MD of ACL Airshop, agrees with the excitement. He points out, “You want to buy at the lowest to get the highest return.” But, hold your horses, fellow adventurers! Air cargo isn’t a quick-return rollercoaster; it’s more like a scenic route with high peaks and low lows. Big risks, big rewards.

Now, let’s talk about the big players making moves. MSC and CMA are stepping into the air cargo game, aiming for the long haul. Jos reminds us, “It’s not a quick return. You have to be ready for high peaks and low lows. There are big risks involved.”
Andy adds a dash of wisdom, “You have to allocate capital and be ready for the long-term. The shipping lines knew what they were getting into and should have factored that into their investment.”

The air cargo industry is like a hidden gem, waiting to be discovered by more investors. Andy highlights, “Air cargo has been under-invested in for more than 40 years, but it’s reaching an age where it needs to be changed.” Adding to this perspective, Edip Pektas, the founder of Maestro and Airblox, and a partner at Inoa Capital, adds his two cents. He sees a lot of strategic interest in ground handlers, but the players are either too big or too small. Despite these challenges, the industry is evolving, and capital is the key to growth.

Andy drops a truth bomb, “There’s not enough private equity in the industry.” However, fear not, because private equity is like the superhero swooping in to save the day. It helps the industry access capital that wouldn’t otherwise be available.

Venture capital has been making headlines, but Edip believes it’s not going away. He compares it to a building, saying, “The first wave goes into the foundations, and then you build up from there.” Private equity brings in more investment and, according to him, “I am very optimistic; bullish about the air cargo industry.”
Despite this optimism, there’s a challenge in the air – Europe needs to catch up with the US. Andy spills the beans, “Europe has some catching up to do; it’s 20 years behind the US.” Nevertheless, the US seems to have the magic touch, making it easier to attract investment.

Edip breaks it down further, “The major differences in the US and Europe are scalability and the regulatory environment.” Data is the golden ticket that attracts investors. Andy agrees, saying, “Air cargo is not about moving freight; it’s about data.”
Therefore, dear dreamers, if you’re thinking about jumping into the air cargo investment game, buckle up for the long ride. As Andy wisely concludes, “This is not an overnight game. It’s 10 years – you have to play the long game.”