(Bloomberg) -- MNG Cargo Airlines Inc., a Turkish logistics and transport company, is looking to use funds raised from a planned listing in New York to expand in the U.S. and Europe and add to its fleet of nine Airbus SE planes.

The freight specialist will seek to attract new customers with a range of end-to-end services beyond air transportation, including warehousing and handling, Chief Executive Officer Ali Sedat Ozkazanc said in a phone interview. The Istanbul-based group is looking to add one Airbus A321 jet, he added, and will consider widebody planes.

The executive declined to comment on the expected proceeds from the listing, which is being conducted via a merger with Golden Falcon Acquisition Corp., a special purpose acquisition company, or SPAC, led by European dealmakers Makram Azar and Scott Freidheim. More than 51% of the outstanding equity will remain with MNG’s Turkish founder, construction tycoon Mehmet Nazif Gunal’s Mapa Group conglomerate.

While Ozkazanc talked up the rise in global e-commerce as a reason for the listing, MNG’s move to go public comes at an uncertain time for the industry. Airborne cargo deliveries are falling after an unprecedented surge at the height of the Covid-19 crisis, spurred by shipments of masks and vaccines, dislocated maritime flows and a jump in online shopping.

Freight volumes will probably decline 4% in 2023 following an estimated 8% slump this year, the International Air Transport Association said last week, predicting a slide across all regions. Yields, or prices, that gained in 2022 are set to suffer a 22% reversal in the coming 12 months, it said.

SPAC Decline

Another move at odds with current trends is the decision to merge with a SPAC as a route to market — a type of deal that is on the wane. Blank-check companies have announced about $94 billion of business combinations this year, compared with more than $500 billion this time last year, according to data provider SPAC Research. 

“Our aim was to save time and money by means of a merger with the SPAC,” Ozkazanc said. “We have always seen the support and help from Golden Falcon since we were introduced to them.”

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