- Priority 1 Leasing owns 15 Airbus A340 cargo aircraft.
- The portfolio includes 82 Trent 500 engines and 9,000 spare parts.
- European Cargo operates the A340-600 freighters as the main user within the group.
- The fleet bases primarily at Bournemouth International Airport.
- Liquidators are seeking a sale of the business and airworthy aircraft to maximise value.
Shannon-based aircraft lessor Priority 1 has gone into liquidation. Damien Murran and Julian Moroney of Teneo Restructuring Ireland received appointment as joint provisional liquidators to Priority 1 Leasing Ltd, Priority 1 Leasing Holding Ireland Ltd and Priority 1 Logistics Holding LLC on 24 June 2026.
The group established just over a year ago held a portfolio of 15 Airbus A340 cargo aircraft, 82 Trent 500 engines and 9,000 spare parts.
The company headed by chief executive Dermot Manifold faced sustained financial pressure in recent years. Reduced flying activity, working capital constraints and increased fuel costs contributed to the situation. The administration of its Bournemouth based cargo airline European Cargo exacerbated the position. Priority 1 Logistics acquired full control of European Cargo in November 2024. European Cargo posted revenue of $136m (€119m) and a $26m net loss in 2024.
The liquidators will pursue a sale of the business and its assets to maximise value for stakeholders. They work closely with the administrators of European Cargo. They welcome expressions of interest from potential buyers for the aircraft portfolio. The Priority 1 Group experienced a period of sustained financial pressure in recent years resulting in a material deterioration of its financial position.
This has been driven by a number of factors including reduced flying activity, significant working capital constraints, increased fuel costs and ultimately European Cargo Ltd its UK based cargo airline going into administration. The immediate priority for the liquidators is to pursue a sale of the business and its assets with a view to maximising value for its stakeholders.
A written statement “The Priority 1 Group has experienced a period of sustained financial pressure in recent years resulting in a material deterioration of its financial position. This has been driven by a number of factors including reduced flying activity significant working capital constraints increased fuel costs and ultimately European Cargo Ltd its English based cargo airline going into administration.”
“We will be working closely with the administrators of European Cargo Ltd as we explore the sale of the business and assets of the group. We welcome expressions of interest from potential buyers for the business as well as its portfolio of aircraft many of which are airworthy and of distinguished quality.”
The Fleet
Priority 1 Leasing, part of the Priority 1 Group, owns a portfolio of 15 Airbus A340 cargo aircraft along with 82 Rolls-Royce Trent 500 engines and approximately 9,000 spare parts. The company, based in Shannon, Ireland, specialises in Airbus A340 aircraft leasing and asset management. It established operations just over a year ago and positioned itself as a major owner of the A340 type.
The aircraft consist primarily of converted Airbus A340-600 passenger-to-freighter (P2F) models. European Cargo, a Bournemouth-based freight operator wholly owned by Priority 1 Logistics, operates a significant portion of the fleet (around 9-10 active or available A340-600 freighters as of early 2026). These aircraft base mainly at Bournemouth International Airport, with some activity at Teesside and other locations. The conversions took place during the pandemic period for cargo use, including transport of essential goods.
The aircraft primarily serve European Cargo’s operations as the main lessee and operator within the group. European Cargo provides scheduled cargo services, ad hoc charters, and wet/dry leasing.
The airline focuses on long-haul freight with the large-capacity A340-600 freighters. As the group enters liquidation, the liquidators (Damien Murran and Julian Moroney of Teneo Restructuring Ireland) pursue a sale of the business and assets, including the airworthy aircraft.
No external third-party airlines appear as primary lessees in available details, since the fleet integrates closely with European Cargo, which itself entered administration in early June 2026. Potential buyers may include other cargo operators interested in the converted widebody freighters.
