AJW Group has expanded its Power-by-the-Hour (PBH) contract with Brazilian cargo operator, Modern Logistics, highlighting both companies’ commitment to operational efficiency and safety in the growing cargo market, specifically in the dynamic Brazilian logistics sector.

The PBH agreement, originally signed in 2017, marked AJW Group’s first venture into the Brazilian market. Initially covering the support for Modern Logistics’ Boeing 737 Classic (B737CL) freighters, the agreement now extends to include Modern Logistics’ new fleet of Boeing 737-800 aircraft. The extension is a testament to the trust and collaboration built between the two companies over the years, as Modern Logistics seeks to further streamline its logistics solutions with the robust support of AJW Group’s technical expertise and supply chain capabilities.

Strategic partnership

The extended contract signifies a deepening of the relationship between the two organizations, aimed at enhancing operational efficiency for Modern Logistics.

Scott Symington, Chief Commercial Officer at AJW Group, expressed enthusiasm about the strengthened partnership: “We are pleased to deepen our relationship with Modern Logistics through this expanded PBH contract. AJW Technique, our flagship maintenance facility in Montreal, along with our supply chain partners, ensures an exceptional end-to-end customer experience for Modern Logistics.”

AJW Technique, located in Montreal, is recognised for its cutting-edge maintenance, repair, and overhaul (MRO) capabilities. The facility plays a crucial role in servicing Modern Logistics’ fleet, ensuring that aircraft maintenance and parts repair are carried out efficiently and to the highest standards. The extended contract also indicates AJW’s commitment to supporting Modern Logistics in handling the Boeing 737-800s, which offer improved fuel efficiency and increased cargo capacity, both vital to Modern’s expanding operations.

Driving efficiency

PBH contracts are becoming increasingly important in the cargo aviation sector. Under a PBH agreement, the operator pays a fixed fee based on aircraft flight hours, providing predictable maintenance costs while ensuring that critical components are available and serviced efficiently. This model is particularly attractive for cargo operators like Modern Logistics, who operate in a highly time-sensitive and competitive environment.

AJW Group, with its global supply chain network and industry-leading component repair capabilities, offers Modern Logistics a flexible and reliable solution to maintain high levels of aircraft availability. This, in turn, enables Modern Logistics to focus on delivering its core logistics services with minimal downtime for aircraft, allowing them to meet client demands and optimize fleet performance.

Modern Logistics’ growth 

Mario Fernandes da Costa, Chief Financial Officer at Modern Logistics, underscored the importance of AJW Group’s support in the airline’s growth trajectory: “For the past years, AJW has been a crucial strategic partner in our mission to bridge distances, connecting people and businesses. AJW’s agile and efficient support ensures our safety and efficiency levels, allowing us to focus on creating unique logistics solutions for our clients.”

Modern Logistics has been at the forefront of creating innovative logistics solutions within Brazil, leveraging its fleet of cargo aircraft to meet the growing demands of e-commerce, industrial sectors, and healthcare, among others. The company has rapidly expanded its fleet and operations to cater to the burgeoning cargo market in Brazil, one of the fastest-growing economies in Latin America.

AJW’s partnership allows Modern Logistics to maintain its operational edge, benefiting from predictable costs and seamless access to high-quality parts and repairs. The expanded PBH agreement ensures that Modern can continue its fleet modernisation with minimal risk, positioning it to handle larger volumes of cargo across a broader geographical area.

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