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CargoLogicAir goes into administration

[ November 17, 2022   //   ]

UK-based cargo airline CargoLogicAir has gone into administration. It follows the imposition of sanctions on Russian airlines imposed in the wake of the invasion Ukrain, despite the fact that its owner, Alexey Isaikin, is a Cypriot citizen.

He was however earlier involved with Russian all-cargo carrier Volga-Dnepr Group, operator of the AirBridgeCargo fleet, which is now banned from Europe and the US. CargoLogicAir operates two 747-400F freighters.

David Buchler and Jo Milner of Buchler Phillips Limited have been appointed joint administrators.

In a statement, they said that CLA, founded in 2015, is the only British all-cargo main deck freight airline. It employed more than 100 people before sanctions, made a profit of £41m on turnover of £149m in 2020.

However, they said that the company has been unable to trade effectively since its majority shareholder and former director was made the subject of UK government sanctions against businesses deemed Russian controlled. Although CLA was granted licences for minimal continuance of operations by HM Treasury, the company faced increasing difficulties with its bankers despite having considerable funds in its account.

David Buchler said: “The appointment of administrators at CargoLogicAir is a very unfortunate, unintended consequence of sanctions generally applied against British businesses perceived as Russian controlled. This is a unique British business performing a valuable commercial service to British customers trading overseas, employing British people and paying British tax.”

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