Baltia's proposed purchase of Songbird Airways collapses

Baltia Air Lines, Inc. has announced that its proposed acquisition of Songbird Airways from its owner, AerLine Holdings LLC, has been called off.
In an SEC filing, the start-up carrier, also known as USGlobal Airways, said AerLine had sent a letter on November 22 informing Baltia that it had terminated the agreement as a result of Baltia’s failure to proceed with the closing as scheduled.
Under the original plan, Baltia was to have acquired Songbird Airways, along with its entire share capital, operating licences and certificates, from AerLine for USD6.5 million. The deal was to have closed by October 31.As such, with the purchase's collapse, Baltia has also lost a USD1 million good-faith deposit paid to AerLine on September 1, 2017. A B737-400, N417XA (msn 25417), that was to have been leased to Baltia post-transaction, is now being offered for sale or lease by AerSale.
Baltia is now left with no known shortcut to market and is in peril of having its existing foreign scheduled passenger authority revoked by the US Department of Transportation (DOT) for reason of dormancy.

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Baltia Air Lines inks $6.5mn deal to buy Songbird Airways

Part 121-certified carrier Songbird Airways (SGB, Lakeland) following the signing of a Letter of Intent (LOI) in June.

USGlobal, formerly known as Baltia Air Lines, said in an SEC filing last week that it entered into a formal agreement with AerLine Holdings Inc. to acquire all Songbird stock. The transaction is valued at USD6.5 million and expected to close on October 15, 2017.
In addition to the purchase, USGlobal will lease B737-400 - N417XA (msn 25417) - from AerLine. The aircraft will undergo a C Check prior to induction into USGlobal service.
in addition to its air carrier certificate, USGlobal Airways is also eyeing Songbird's certificate of public convenience and necessity issued by the Department of Transportation to conduct interstate and foreign charter air transportation.

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Baltia Air Lines eyes Songbird Airways' AOC, licences

Baltia Air Lines (BTL, New York JFK) has announced plans to acquire dormant Floridian operator Songbird Airways (SGB, Lakeland). The move is part of a greater plan for the thirty-year-old start-up to gain its FAR Part 121 certification and launch commercial operations.
In an SEC filing on Wednesday, June 28, Baltia, now rebranded as USGlobal Airways (BTL, Newburgh), said it had signed a non-binding Letter Of Intent with AerLine Holdings LLC to acquire all of the Songbird Airways' issued and outstanding shares. The transaction is valued at USD6.2 million of which USD1 million has already been paid into the account of a third party escrow agent to be refunded if the transaction fails to go through.

As part of the tentative purchase, Baltia expects Songbird to be debt free and to hold both a valid Air Carrier Certificate as well as a valid certificate of public convenience and necessity issued by the Department of Transportation (DOT) to conduct interstate and foreign charter air transportation with up to ten large aircraft.
"The Company is currently in the process of conducting its due diligence review of Songbird and has already confirmed the current status of Songbird’s FAA and DOT certificates," Baltia said.
The LOI is to be firmed and consummated within ninety days i.e. by September 26, 2017.
Previously known as Sky King (5K, Lakeland), Songbird's last known commercial services entailed running casino charter flights to and from Atlantic City using a single B737-400.

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Baltia to resume AOC drive; plans rebrand, restructure

Baltia Air Lines (BQ, New York JFK) has taken a step toward acquiring its Air Operator's Certificate (AOC), announcing that the US Federal Aviation Administration (FAA) has allowed it to resume its application.

According to a Baltia press release, the potential airline and the FAA have reached a settlement agreement which will allow Baltia to re-start its certification process. The agreement comes after the appointment of new company President, Anthony Koulouris, in November 2016, who has committed to restructuring Baltia to bring it in line with industry standards.

Baltia Air Lines has been trying to launch a New York JFK – St. Petersburg route since 1991 but has failed to negotiate numerous regulatory, financial and equipment obstacles. The previous vice president of finance, Barry Clare, reached a settlement with the Securities Exchange Commission (SEC) for USD1 million in mid-2016 after being charged for acting as an unregistered broker for the airline.

Up until recently, Baltia had proposed to use an almost forty-year old B747-200, but scrapped those plans in early 2016. It most recently signed a Letter of Intent to lease a B767-300(ER) from Kalitta Air (K4, Detroit Willow Run) to complete its certification.

Baltia's board of directors and shareholders will meet in mid-April where the company intends to seek approval to change its name and reduce its outstanding shares under a reverse stock split.

Koulouris is hopeful about the airline's future as it closes in on 30 years of start-up attempts. "The concerns of employees and shareholders have been incorporated into the new corporate vision and strategy and the executive management team remains committed to launching the Company's next phase of operations".

Baltia Air Lines to lease a B767 from Kalitta

Twenty-seven year-old US start-up Baltia Air Lines (BQ, New York JFK) says it has signed a Letter of Intent (LOI) to lease a B767-300(ER) from Kalitta Air (K4, Detroit Willow Run).

The terms and conditions of the lease, including delivery dates, have not yet been revealed.

Baltia, which has yet to secure its AOC from the US Federal Aviation Administration (FAA), had originally planned to commence US-Russia services using a thirty-seven year-old B747-200, N706BL (msn 21705). However, those plans were abandoned earlier this year citing the aircraft's age and poor economy.

A subsequent plan was announced wherein the carrier would use an ARJ-100 for flights from Baltimore Thurgood Marshall to Albany, NY, Trenton, NJ, and Islip.

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Baltia applies for Russia frequency allocation

Baltia Air Lines (BQ, New York JFK) has applied to the US Department of Transportation (DOT) to be allocated traffic rights as per the terms of the United States' Bilateral Air Services Agreement (BASA) with Russia.

The twenty-six year-old start-up is requesting a weekly frequency for its planned New York JFK-St. Petersburg direct service. It has already applied for slots at the New York airport 'for winter 2016 as well as for summer 2016.'

According to the ch-aviation route database, the only direct flights between the United States and Russia are routed through Moscow. The market is currently dominated by Russian carriers Aeroflot (SU, Moscow Sheremetyevo) and Transaero Airlines (UN, Moscow Vnukovo) with Singapore Airlines (SQ, Singapore Changi) and Delta Air Lines (DL, Atlanta Hartsfield Jackson) playing a more minor role.

Baltia, which is currently on Phase 3 of its AOC certification drive with the US Federal Aviation Administration (FAA), plans to operate the route using a two-class 338-seater B747-200 - N706BL (msn 21705) - that is currently parked at Oscoda.

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Baltia Air Lines eyes New York - Russia flights in 2H 2014

Baltia Air Lines is on course to obtain its US Part 121 Air Carrier Certificate with transatlantic flights likely to launch in the second half of this year.
CNN reports that the airline will ferry its sole aircraft - a B747-200, N706BL (msn 21705), formerly with Kalitta Air - from Oscoda, Michigan to New York JFK in May ahead of its maiden New York to St. Petersburg flight.
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Photo:Baltia Air Lines