Challenge Group smoothly navigates current ME challenges

The war in the Middle East has a significant impact on regional and international air traffic, including freighter services. One of the main companies affected is Malta-based Challenge Group, which has close ties to Israel due to its own history combined with longtime business relations. CargoForwarder Global (CFG) spoke with Sales Chief, Or Zak (OZ), about the consequences of the conflict for his airline and future fleet plans.

“As long as Ben Gurion Airport remains open, we will continue serving Israel,” states Or Zak of the Challenge Group  –  courtesy Challenge Group

CFG: Challenge Group has its roots in Israel, a country and market it still serves today. How does the current military situation in Israel and the entire Levante region affect your company’s freighter operations?

OZ: Challenge Group has been serving the Israeli market for over four decades, starting with facilitating the perishable trade with Europe and evolving into a key player in managing complex verticals.

Regarding the current situation, I can confirm that as long as the airspace and airport [Ben Gurion, Tel Aviv] remain open, we will continue to operate. By doing so, our services rendered to standard market conditions strictly follow regulatory guidelines to ensure the safety of our staff and assets.

CFG: Is your airline a sort of lifeline ensuring constant supplies of goods urgently needed locally?

OZ: Our expertise allows us to offer end-to-end logistics solutions for a variety of commodities, ensuring efficient operations for the local freight forwarding and shipper community. As part of our growth and development plan, we remain committed to connecting this market to the world. During any disruption or challenging situation, as a pure freighter operator, we play a crucial role in ensuring the supply chain remains operational, especially when the capacity offered by passenger aircraft suddenly disappears. We provide essential support to local trade and meet the region’s logistics needs, all while maintaining our commitment to the safety and security of our staff and aircraft. As already stated, we strictly adhere to the guidelines and regulations set by the relevant regulatory bodies to ensure smooth and secure operations without compromise.

CFG: You just added two Boeing converted B767-300BDSF to your fleet, bringing the total number of this freighter variant in your fleet to four units. Thanks to the additional capacity, you launched new services to Delhi in addition to three weekly services to Mumbai. Is the Indian market Challenge’s new El Dorado?

OZ: As a pure freighter operator and logistics provider, Challenge Group views itself as an enabler of global trade. We strategically deploy capacity based on where our customers need us most. With the shift of some manufacturing from China to India, there has been a growing demand for increased capacity to serve specific industries such as pharmaceuticals, electronics, high tech, and aircraft engines. During our 767 conversion program, we repeatedly emphasized that this added capacity would allow us to explore new markets and offer enhanced logistics solutions to our customers. By opening new destinations and increasing frequencies to India, we have fulfilled that promise, and the local freight forwarding and shipper communities have embraced our innovative approach to the supply chain.

CFG: Including these latest additions to the fleet, the Challenge Group now operates ten all-cargo aircraft. Are more to come? And if so, which models are you eyeing?

OZ: Currently, Challenge Group operates a fleet of ten fully-owned freighters, consisting of six Boeing 747-400s and four Boeing 767-300BDSFs, supported by three AOCs. However, there is more to come soon, so stay tuned.

We are progressing rapidly in line with our fleet growth plan, having just completed the B767 conversion program. To offer our customers even more efficient, flexible, and competitive solutions, we’ve already announced plans to add Boeing 777-300ERSF converted freighters to our fleet next year, which will be a valuable asset addition.

CFG: Or Zak, thank you for this interview.

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