ICE deportation push spurs aviation firm to buy up used jets

Core Insights - Daedalus Aviation Corp. has secured a $140 million contract with the Department of Homeland Security (DHS) to provide aircraft for deportation activities, marking a significant opportunity for the company in the aviation industry [14][17]. - The company has registered four Boeing 737-700 aircraft previously used by Avelo Airlines, which has exited the deportation business due to financial pressures [6][17]. - Daedalus operates without scheduled services or direct consumer marketing, which insulates it from the public backlash faced by consumer-facing airlines like Avelo [8][17]. Company Overview - Daedalus is based in Arlington, Virginia, and was formed in 2024, with William Allen Walters III as its president [10][17]. - The company's mission focuses on providing "precision aviation for critical missions," including government-directed evacuations, and it has access to both narrow- and widebody aircraft [10][17]. - The aircraft acquired by Daedalus are between 17 and 22 years old and were previously owned by Genesis Aircraft Services and Aero Capital Solutions [9][17]. Industry Context - The aviation industry is facing logistical challenges due to Trump's immigration policies, which have led to consumer-facing airlines like Avelo distancing themselves from deportation flights [2][17]. - The DHS has confirmed that the aircraft acquired through Daedalus will support multi-use missions, including the removal of criminal illegal aliens, indicating a shift in operational strategy for deportation flights [12][14][17]. - In the previous year, ICE deported over 300,000 individuals, falling short of its internal goal of approximately 1 million deportations, highlighting the ongoing demand for efficient transportation solutions in this sector [15][17].