Western Global Airlines (KD, Fort Myers Southwest Florida) has reportedly cancelled an order for two B777-200Fs, according to a Cargo Facts report based on notes accompanying a Moody's March 23, 2023, credit downgrade report for the cargo airline.
Citing reasons for the airline's corporate family rating downgrade from B2 to Caa1, and its senior unsecured rating to Caa2 from B3, Moody's noted that all of Western Global's assets are encumbered, limiting the airline's ability to raise additional capital, and that the current USD47.5 million revolving credit facility would remain fully utilised "even after the company receives a return of certain deposits associated with its now aborted agreement to purchase two B777-F aircraft from the Boeing company."
In February 2022, ch-aviation reported the order for the pair of twin-jet freighters, for which it made a downpayment of approximately USD13 million. Boeing's latest order and delivery information, valid as of March 31, shows the Western Global B777Fs as still pending. Boeing declined to confirm the cancellation, deferring to Western Global Airlines, who did not respond to ch-aviation's request for comment.
While Moody's highlights the declining block hours in some quarters and an overall weakness in Western Global's revenues and cash flow as current challenges for the carrier, the cargo airline maintains a substantial business providing services to other airlines, logistics companies, and the US military. According to the ratings agency, Western Global had USD400 million in aircraft assets as of September 2022. The ch-aviation fleets module reveals that the airline operates a 20-strong fleet comprising sixteen MD-11Fs, one B747-400FSCD, one B747-400(BDSF), and two B747-400(BCF)s
