A new player is soon to join the Georgian aviation market - Gryphon AIR CARGO to start operating in Georgia

Georgia has the opportunity to become a logistics hub on the world market thanks to the development of cargo aviation. Much of the country's potential comes from its geographical location – Georgia connects Central Asia, the Middle East, Africa and Europe. The possibility of its becoming an air transportation hub was finally secured by the signing of the Association Agreement with the European Union and the fulfillment of the terms stipulated by the Agreement on the part of the Government. The document also contains a section on aviation, and as a result of the signing, airlines registered in Georgia can operate freely on the European market.

The founders of Gryphon AIR CARGO took advantage of this opportunity and registered the company in 2022 with a Georgian investment of $10 million. BasisBank also made a significant financial contribution to the promotion of the project. Almost all the shareholders of the company are citizens of Georgia.

"With the signing of the Association Agreement, the legislation of Georgia in the field of aviation security has moved closer to EU standards. This is a huge opportunity for airlines, especially considering that only a few countries in the region have such an opportunity," - says Giorgi Marr, managing partner of Gryphon AIR CARGO.

"Georgia's location is superior to those others, geographically uniting as it does the countries of the Central East, Middle East, South Asia, i.e. India and Pakistan, as well as North Africa and Europe. When we were negotiating with companies to buy aircraft, they naturally showed interest, as Georgia has the opportunity to connect many regions, and a large airline should operate here."

At the first stage, Gryphon AIR CARGO purchased one aircraft - a Boeing 737. Their partner in this transaction was the British company World Star Aviation. The payload capacity and flight range of this type of aircraft is ideal for regional transportation.

"It took several months to find the right aircraft. We decided to buy our first aircraft instead of signing a lease agreement, so as to speed up the certification and licensing process. We hope that we will be able to offer flights in the very near future," - Marr explains.

Gryphon AIR CARGO plans to expand quickly and lease two additional aircraft. Further plans also include the development of warehouse infrastructure and logistics, which will allow the company to form a logistics ecosystem.

"In order for Georgia to truly become a hub of air transportation, the development of two directions is necessary: warehouse infrastructure at the airport and the technical direction related to it," – Marr says. "We want Georgia to have a full aircraft service, and work in this direction is already underway, for example, by Enterprise Georgia. We believe that we should also contribute, and are considering making a warehouse base available. The development of these two directions will be a really important step forward."

The development of cargo aviation in Georgia will also contribute to the progress of other sectors of the economy - for example, many of the existing obstacles for companies and entrepreneurs exporting agricultural products from Georgia will be removed. To date, local entrepreneurs and farmers have had to use passenger airlines to export their products. The service of Gryphon AIR CARGO will primarily be beneficial for such entrepreneurs. The company is already negotiating with export associations and agricultural producers. Gryphon AIR CARGO aims to provide end-to-end transportation, with guaranteed flights, timely delivery and a well-organized logistics system.

"As for the creation of new jobs - according to current data, even though we've yet to land a plane or start flights, Gryphon AIR CARGO already has some 30 employees. Along with the addition of aircrafts, the demand for qualified personnel will also increase" – Marr notes. "Taking into account the future goals of the company, a three-year personnel development plan has been drawn up, which involves the training and employment of pilots and technical personnel."