Swiss Farnair buys 45% of K-Mile Air

European express air cargo company Farnair acquired a 45 per cent stake in Thai cargo airline K-Mile Air, taking over the stake held by Malaysia’s Transmile Group Bhd. K-Mile chief executive Kledchai Benjaathonsirikul said the partnership would enhance the company’s growth and strengthen Bangkok as a regional cargo and logistics hub.


Swiss Farnair buys 45% of K-Mile Air


European express air cargo company Farnair acquired a 45 per cent stake in Thai cargo airline K-Mile Air, taking over the stake held by Malaysia’s Transmile Group Bhd. K-Mile chief executive Kledchai Benjaathonsirikul said the partnership would enhance the company’s growth and strengthen Bangkok as a regional cargo and logistics hub.

K-Mile, Thailand’s only scheduled and designated all-cargo airline, operates daily flights on two routes: Bangkok- Singapore-Jakarta and Ho Chi Minh City-Hong Kong, as well as providing charter freight services. The carrier plans to modernise its freighter fleet, current comprised of three ageing tri-engine B727-200Fs, to newly converted B737- 400 freighters. Company executives said two B737-400 freighters are expected to start operating for K-Mile in the third quarter this year, lowering costs because of the improved fuel efficiency of the jets.

K-Mile’s long-term service contract with German logistics company DHL, which dated back to K-Mile’s start-up in May 2006, ended last year. Farnair group chairman Vic Karjian described its investment in K-Mile as a significant step for the Switzerland-based firm in implementing its strategic vision in the region which includes creating a regional platform connecting emerging markets with established cargo hubs in the region.

Farnair’s primary freighter activities include operating network feeder services for integrator and third party logistics industries in Europe. Additionally the company offers adhoc charters for manufacturers and freight forwarders, as well as, passenger activities such as supplying aircraft to governmental and relief agencies, ACMI services for regional airlines and charter flights for the events industry. With a fleet of over 20 aircraft – including 12 ATR 72-200s, one passenger and two cargo ATR 42-320s and two Beech 1900 C/D freighters – Farnair operates in Europe, West Africa, the Middle East, India, Asia and Oceania. The portfolio of the FARNAIR Group also includes a full array of complementing, value-adding service options such as Crew Training, Ground Logistics and Cargo Handling as well as Aircraft Trading and Leasing. In late-February this year Farnair took delivery of the first of four B737- 400SF 11-pallet freighters Aeronautical Engineers, Inc. (AEI). The aircraft is a high gross weight B737-400SF built in 1996 and was converted at Commercial Jet’s Miami facility.