Monday
December 4, 2017


 

 

 

US Global deal to buy Songbird Airways terminated

Rendering of what a US Global plane might look like

STEWART AIRPORT – Start-up airline US Global Airways’ plans to provide international service from Stewart International Airport may be delayed as the airline’s plans to buy Songbird Airways for $6.5 million have been terminated.

That airline, operated by AerLine Holdings, Inc. has an FAA operating certificate and one jet aircraft. Had US Global consummated the deal, it would have sped up the process for it to launch its own service from Newburgh.

Under terms of the agreement between US Global’s parent company, Baltia Air Lines, and AerLine, the deadline to close on the deal was to be no later than October 31, 2017.

Baltia/US Global received a letter dated November 22 from AerLine terminating the agreement as a result of the company’s failure to proceed with the closing as scheduled, a November 29 filing with the Securities and Exchange Commission stated.

US Global Chairman Anthony Koulouris told shareholders in a November 30 letter that the board of directors has voted unanimously “to move forward with our revised approach.” He cited confidentiality as the reason he could not provide details at this time.

Koulouris said over the last year, the team has “aggressively tackled several issues that the company inherited from the previous management teams.”

He told shareholder the executive team “has embraced a culture of discipline and fortitude, which has enabled the ability to identify when more attractive opportunities may exit.” He said if the executive team is not fully confident it is the best deal for the shareholders, it will not take any action.

US Global had planned on commencing flights to the Caribbean from Stewart during this winter season and in the future launch flights to Europe, Russia and the Middle East.

 


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