Challenge Group

Cargo Airlines in London Heathrow

Challenge Airlines IL

The history of the Group starts with Cargo Air Lines (CAL, known today as Challenge Airlines IL), an all-cargo airline established in June 1976. It started flying operations in November of that year, originally leasing aircraft from El Al, Israel’s flag carrier.[6]

Initially conceived to transport the country’s agricultural exports to Europe, CAL has along the years diversified its operations and became the leading provider of air cargo services in the region, albeit using (wet-leased) leased aircraft flown by other carriers.

On 1 December 1999, following receipt of Israeli government licences issued earlier that year, CAL began operating scheduled services using its own aircraft, two Boeing 747-200F.

By the early 2000s the airline began to focus on the transportation of specialty cargo, including live animals, dangerous goods, and oversized freight and developed a reputation for providing innovative solutions to complex cargo transportation challenges.

Challenge Group Boeing 747 aircraft with registration OO-ACF at Liege Airport. Photo: Challenge Group.

New Ownership

In 2010, after a turbulent decade, the airline changed ownership and was acquired by Offer Gilboa, an entrepreneur and the controlling shareholder, together with Eshel Heffetz, then CAL’s VP Flight Operations. The first mission was to strengthen the airline and its Belgian handling subsidiary while examining the Group’s strategy. In 2013, after a strategic analysis was conducted, it was agreed that a global expansion was required.

Challenge Airlines IL started investing in upgrading its fleet of aircraft and in 2014 it took delivery of its second Boeing 747-400 freighter. With these new extended range freighters, Challenge Airlines IL was now able to fly non-stop to locations such as Latin America and Asia Pacific from its Liege hub.

In 2016 the owners started laying the foundations for the establishment of the Challenge Group and spearheading its strategic expansion, from an Israeli focused company to a global air cargo conglomerate.

As part of the rebranding strategy process of the Challenge Group, in June 2022, CAL was renamed to Challenge Airlines IL.[7]

The current fleet of Challenge Airlines IL consists of one B747-400 ERF and two of the recently acquired Boeing 767-300 ER.[7]

Challenge Handling trucks at Liege, Belgium. Photo: Challenge Group.

Challenge Handling

Back in 1997, CAL established a joint venture with AGREXO, (then Israel's leading exporter of fresh produce), and setup the Liege Air Cargo Handling Services (LACHS) at Liege Airport, a major cargo hub located in Belgium, at the heart of ’the golden triangle’ (Frankfurt -Paris -Amsterdam), in Europe.

In 2006, CAL bought out AGREXCO’s partial ownership of LACHS and became the sole owner.[8]

LACHS changed its name to Challenge Handling in December 2020.[9]

Since its founding, Challenge Handling developed a reputation for providing high-quality cargo handling services to a wide range of airlines and cargo operators focusing on complicated air cargo. The company's facilities at Liege, considered one of the largest and most sophisticated handling facilities in Europe, include over 30,000 square meters of warehouse space, 10,000 square meters offline warehouse and 400 square meters of temperature-controlled storage, as well as 5,000 square meters of office space.

Alongside automated roller-bed systems for ULD (SACO & ETV systems) to ensure quick and efficient cargo handling, the company has a high security clearance methodology and operates Europe’s unique largest 52-tonne high-loader that can handle all aircraft types.

Challenge Airlines BE

Challenge Airlines BE was established in April 2017 and has received its Air Operator Certificate (AOC) by Belgian authorities on 18 April 2019.[10] This allowed it to start commercial operations on 2 May 2019 using the acquired Boeing 747-400BCF. The initial focus of the operation was to operate from Liège to Tel Aviv’s Ben Gurion airport.

In July 2019, ACE obtained the USA OPS SPEC from the Federal Aviation Administration (FAA) enabling operations to the United States and in September 2020 it obtained the China OPS SPEC allowing it to operate to China as well.[11]

The second aircraft that joined the fleet was a Boeing 747-400ERF in early 2020 and the third was a Boeing 747-400F in August 2022.

Challenge Airlines MT first flight. Photo: Challenge Group

Challenge Airlines MT

Challenge Airlines MT is based in Malta and holds a Maltese AOC. It is the most recent airline established by the Group. The airline received its Air Operator's Certificate (AOC) in November 2022 and has registered its first Boeing767-ER 300 in its fleet. Its first flight carried to Malta 17th Century Baroque silk tapestries commissioned at the time by the Grand Master of the Order of St John.[12]

The company operates two out of four Boeing 767-300ER recently purchased by the Group.

The airline is likely to fly a mix of perishable, pharma, and sea/air connections at first and eventually expand to fly the group's specialties of horses, cars, engines, and more in the long-term.[13][14] The airline is especially focusing on expanding its presence in the sea-to-air business model with a focus on the United Arab Emirates' market. It also serves as a contractor for the Israeli Ministries of Foreign Affairs, Health, and Defense.[1][2]

Challenge Logistics

Challenge Logistics, the Ground transportation division of the Group, was established to support Challenge Handling with the collection and distribution of cargo to the various ground destinations. The company offers a European road feeder network out of Liège in Belgium, as well as a comprehensive trucking network in the USA. It has access to high security trailers, dual temperature, and high insulation value trailers (FRC certified), and can handle oversized/odd cargo, dangerous goods (ADR), as well as live animals.

It operates a network of more than 40 trucking partners, the logistics provider reaches most main European markets within 12 hours, out of Challenge Group’s Liege hub. A logistics ‘control tower’ team, based in Liege, provides global service coverage 24/7.[15]

Challenge Air Cargo

Founded in 2018, Challenge Air Cargo, is the commercial entity that manages the sale of Cargo capacity of the Group’s three airlines, as well as third party customers. From the Group’s Head Office in Malta and with its own offices in the Netherlands, Germany, and Hong Kong, coupled with a network of GSA offices, Challenge Air Cargo’s expertise lies in establishing unique door-to-door solutions for time sensitive and complex shipments.[16]

Challenge Air Cargo is also a leading player in the charter market and is capable to operate cargo charters worldwide on short notice.

Challenge Aviation Services

Challenge Aviation Services (formerly ACE aviation services,) was registered in Malta in early 2016 and soon after, acquired the second Boeing 747-400 Freighter owned by the Group, followed by two more in 2018, and four Boeing767-ER-300 in 2022.

The company and its subsidiaries are the Group’s leasing arm, focusing on providing it with the needed wide body aircraft and respective spare engines.[17] It currently owns seven wide body aircraft and spare engines. Challenge Aviation is specialised in the acquisition and maintenance of aircraft and parts, predominantly engines. It holds several maintenance agreements, as well as an agreement to convert four wide body aircraft.

Challenge Technic

Challenge Technic, formerly JETMX, is an independent EASA 145 / BCAA third-party line maintenance service provider. It was founded in 2018 and was acquired by Challenge Group on 1 September 2021.[18] The Group took on all JETMX staff at the company’s five-line stations; one station in Liege and Belgium, three in Germany; Hannover, Cologne, Leipzig, and one in Sal in Cape Verde, off the coast of West Africa.[19]

Challenge Technic’s headquarters and operational management are in Iceland. Its skilled technical staff, in its various locations, not only serve the Group’s fleet but also other airlines around the world. Together with a closely-knit MRO network, they ensure that airline customers are never parted from their assets due to maintenance, for longer than necessary. The division offers a wide range of services, including transit checks/ETOPS pre-flight checks, daily and weekly checks, A-checks, work packages, troubleshooting, engine wash, engine change services, cabin defect rectification, 24/7 AOG support, parts storage and associated logistics support, aircraft field representative support services, flying spanner services, and borescope inspections.

Future

Over the last five years, the Group has trebled its capacity and now handles 300,000 tonnes of cargo per year, with an ambition to reach half a million tonnes annually. Today, it owns a fleet of four Boeing 747-400F and four Boeing 767-300s.[20]

The Challenge Group is in continuous evolvement with a strong growth strategy that aims to open new destinations and further expand its current fleet to 12 aircraft with the acquisition of four Boeing 777s within the next five years.

65% of the Challenge Group’s cargo is special cargo (mainly helicopters, cars, horses, oil and gas equipment, pharma and aircraft engines) and the strategy aims to offer the complete supply chain process including transportation, handling, sorting, trucking and airfreight capacity and aircraft maintenance.

The Group’s strategic management, headed by Group CEO, Yossi Shoukroun, is located in its headquarters at Skyparks Business Centre at Malta International Airport.

Its logistic hub is located in Liege, Belgium.

The founder, Offer Gilboa, serves as the chairman of the Israeli company Challenge Airlines IL, while Mr Eshel Heffetz serves as the CEO of the Belgian company, Challenge Airlines BE.

The Group’s vision is to be the preferred choice for customers in selected markets globally, providing dependable, integrated and tailormade air cargo solutions, focusing on the most complicated Air cargo missions.

The Group's motto is ‘Challenge Accepted!’.

As of December 2022, the Group owns four Boeing 747s and four Boeing 767s. It also has plans to add a Boeing 777 to its fleet.[1]

1 – Boeing 747-400BCF (OO-ACE) - Challenge Airlines BE

1 – Boeing 747-400ERF (OO-ACF) - Challenge Airlines BE

1 – Boeing 747-400F (OE-LRG) - Challenge Airlines BE

1 - Boeing 747-400ERF (4X-ICA) - Challenge Airlines IL

1 - Boeing 767-300ER (4H-IAH) - Challenge Airlines IL

1 - Boeing 767-300ER (4X-IAJ) - Challenge Airlines IL

1 – Boeing 767-300ER (9H-CAC) - Challenge Airlines MT

1 - Boeing 767-300ER (9H-CAD) - Challenge Airlines MT

From its bases in Liege Airport and Tel Aviv, the Challenge Group flies cargo operations to the following destinations: New York, Houston, Atlanta, Hong Kong, Zhengzhou, Ningbo, Oslo, Larnaca and Astana. The group also operates Charter flights to other destinations.