Alliance Ground International, the largest American-owned cargo handling agent for airlines, says it has won a competitive selection process to operate its first directly controlled warehouse at Los Angeles International Airport (LAX). The five-year lease is expected to be approved by the board of airport commissioners within the next several weeks, allowing AGI to move into the facility on Nov. 1.
The cargo terminal is currently leased to United Airlines, which has not used the property for a long time and subleased it to airport service provider Menzies Aviation and Mexico-based AeroCharter, according to the airport authority and United. The current lease expires Oct. 31.
Los Angeles World Airports declined to provide details on the new lease arrangement, because it has yet to be placed on the board’s agenda for a vote.
Miami-based Alliance Ground International beat out Menzies, AeroCharter, Cargo HS LLC, and global ground handling giants Swissport and Worldwide Flight Services, according to the list of bidders. AeroCharter provides cargo and aircraft services for sister airline AeroUnion and Chile-based partner Avianca.
AGI currently operates at six other cargo facilities at LAX with more than 500 employees, but those warehouses are subleased from other airport tenants. The new addition on West Imperial Highway will be AGI’s first direct lease with the airport authority, said Sarah Andrews, vice president of marketing, communications and government relations.
Having direct control of the warehouse property will allow AGI to invest in more infrastructure and systems, enabling enhanced service for airline customers, she explained in a brief interview. Among the features to be introduced are charging stations for electric ground support equipment, AI-enhanced camera systems and digital technology from CargoSprint that enables truck drivers to manage pickup schedules from a phone without having to check in at the front counter, reducing wait times and emissions from idling trucks. Truck drivers have decreased processing time by 18 minutes at LAX since in-person transactions at LAX stations were eliminated earlier this year, according to the company.
AGI provides cargo, passenger and aircraft support services in 62 cities across the United States and Canada. It is owned by Audax Group and Greenbriar Equity Group.
Click here for more FreightWaves/American Shipper articles by Eric Kulisch.
Write to Eric Kulisch at ekulisch@freightwaves.com.
RECOMMENDED READING:
Atlas Air to invest in Anchorage base expansion as e-commerce surges