Challenge Airlines
Israeli cargo airline specializing in scheduled and charter transportation of general and nonstandard freight.
Last updated August 31, 2026
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Overview
Challenge Airlines IL is an Israeli all-cargo airline headquartered in Shoham and based at Ben Gurion Airport near Tel Aviv. The carrier operates scheduled freight and charter services for general cargo and specialized shipments, including pharmaceuticals and other temperature-sensitive healthcare products, live animals, dangerous goods, oversized and overweight consignments, fresh perishables, valuable goods, and works of art. Its operating model combines air transportation with dedicated cargo-handling capability, particularly through its long-standing ownership and operation of the Liège Airport Cargo Handling Services terminal in Belgium. The airline was established in June 1976 and began charter operations in November of the same year. During its early period, it did not operate a fully independent scheduled network; aircraft were leased from El Al when required. A significant transition occurred on 1 December 1999, when the company began operating scheduled services with its own aircraft after receiving the necessary Israeli government licences. This change established CAL as an independent cargo operator rather than primarily a charter enterprise. The company expanded its European infrastructure in 1997 by acquiring the Liège Airport Cargo Handling Services cargo terminal. The Belgian facility remains associated with the carrier's focus on freight that requires specialized handling, including cargo with unusual dimensions, special security requirements, or particular temperature and care specifications. Liège subsequently became an important European hub for the airline and for related Challenge Group activities. In 2010, the privately held airline was acquired by Offer Gilboa. Under the new ownership, the carrier expanded its flight activity and developed daily services linking Tel Aviv's Ben Gurion Airport with New York's John F. Kennedy International Airport, alongside other scheduled and charter operations. The CAL brand was renamed Challenge Airlines in 2016 as part of a broader identity associated with the developing Challenge Group. The group's European operations later included Challenge Airlines BE, formerly ACE Aviation and ACE Belgium Freighters, and Malta-based Challenge Airlines MT. These affiliated operations are distinct from the Israeli airline but share the Challenge identity and support a wider network of cargo services. Challenge Airlines IL is notable for its emphasis on nonstandard freight rather than only conventional palletized cargo. Its capabilities cover cargo categories that require specialized equipment, loading procedures, documentation, security, or regulatory controls. The airline has reported annual cargo volumes of approximately 100,000 tonnes, although this figure is not tied here to a specified reporting year. Its slogan is “Challenge accepted.” The airline attracted international attention in 2017 after purchasing a Boeing 747 through the Chinese e-commerce platform Taobao for approximately US$23.3 million. The transaction illustrated the carrier's use of large freighter aircraft and became one of the more unusual public episodes in its corporate history. As of the available fleet information, the Israeli operation is associated with Boeing 747-400 freighters, while sister operations have separately used Boeing 767-300 freighters. Challenge Airlines IL remains an active Israeli cargo operator with an international network, a Ben Gurion base, and a European hub and handling presence in Liège.
History
Challenge Airlines IL originated as CAL Cargo Airlines in Israel. The company was established in June 1976 and began charter operations in November of that year. In its initial phase, CAL used aircraft leased from El Al when operational demand required them. This arrangement allowed the company to develop a cargo business without immediately maintaining a fully independent freighter fleet. A key institutional change came on 1 December 1999. Following the receipt of Israeli government licences, CAL began operating scheduled cargo services with its own aircraft. The move expanded its autonomy and established the airline as a dedicated scheduled freighter operator as well as a provider of charter services. The airline also developed a European cargo-handling footprint. In 1997, it acquired Liège Airport Cargo Handling Services, a cargo terminal at Liège Airport in Belgium. The terminal was retained under CAL ownership and operation and supported the airline's specialization in nonstandard cargo. Liège became the company's European hub, complementing its primary base at Tel Aviv's Ben Gurion Airport. The Belgian operation was particularly relevant to freight requiring special loading, storage, security, or handling procedures. In 2010, Offer Gilboa privately acquired CAL. The airline then expanded its flight activity, including daily scheduled cargo flights linking Ben Gurion Airport and New York's John F. Kennedy International Airport. This period represented a move toward a broader international operating network and greater use of the carrier's own freighter capacity. The company adopted the Challenge Airlines name in 2016. The rebranding formed part of a wider Challenge identity that later encompassed related European operations. ACE Aviation, also known as ACE Air Cargo Europe, was established in 2016. Its ground operations were transferred to ACE Belgium Freighters in 2017, and the Belgian operation received its air operator certificate in 2019. Flight operations subsequently began with Boeing 747-400 freighters transferred from the Israeli airline. The Belgian company changed its corporate name to Challenge Airlines (BE) in June 2020. A Malta-based affiliate, Challenge Airlines MT, obtained its air operator certificate in 2022 and received its first Boeing 767-300 freighter in 2023. These entities are related to the broader Challenge Group but should not be treated as the same operating company as Challenge Airlines IL. Challenge Airlines IL's business is centered on international air freight, with scheduled and charter services carrying both ordinary and specialized cargo. Its cargo portfolio includes temperature-controlled pharmaceutical and healthcare shipments, live animals, dangerous goods, oversized and overweight freight, fresh perishables, valuables, and fine art. The airline has been associated with annual throughput of roughly 100,000 tonnes, though the available reference does not specify the year or accounting basis for that figure. A widely reported corporate episode occurred in 2017, when the airline bought a Boeing 747 through Taobao, a Chinese online marketplace. The reported purchase price was approximately US$23.3 million. The transaction attracted attention because aircraft are not commonly purchased through a consumer-oriented e-commerce platform, but it also reflected the importance of large freighter aircraft to the airline's operating strategy. The airline's public identity is summarized by the slogan “Challenge accepted.” It continues to operate as an Israeli cargo carrier based at Ben Gurion Airport, with international services and a European hub and cargo-handling presence at Liège.
- 2017
Boeing 747 purchased through Taobao
[1]The airline purchased a Boeing 747 through China's Taobao platform for a reported price of approximately US$23.3 million.
- 2016
Adoption of the Challenge Airlines name
[1]The carrier replaced the CAL Cargo Airlines identity with the Challenge Airlines brand.
- 2010
Acquisition by Offer Gilboa
[1]Offer Gilboa acquired the privately held airline, after which the company expanded its flight operations.
- 1999
Launch of independent scheduled services
[1]On 1 December, CAL began scheduled operations with its own aircraft after receiving Israeli government licences.
- 1997
Acquisition of the Liège cargo terminal
[1]CAL acquired Liège Airport Cargo Handling Services in Belgium, creating a company-owned European cargo-handling base.
- 1976
CAL Cargo Airlines is established
[1]The Israeli cargo airline was established in June and began charter operations in November.
Products and positioning
A specialist international freighter focused on nonstandard, high-value, sensitive, oversized, and otherwise complex cargo, supported by an Israeli operating base and a European hub at Liège.
Air freight transportation · 1999
Scheduled cargo flights
Regular international freighter services operated from the airline's principal base at Tel Aviv Ben Gurion Airport and through its European network. Scheduled operations form the core of the carrier's international cargo offering and are complemented by charter capacity.
Air freight transportation · 1976
Charter cargo services
Ad hoc and contract freight flights for customers requiring dedicated aircraft capacity, special routing, or shipment profiles that may not fit a regular scheduled service.
Special cargo logistics
Specialized and nonstandard cargo
Handling and transportation for pharmaceuticals, healthcare products, live animals, dangerous goods, oversized and overweight freight, perishables, valuables, and fine art. These shipments require additional controls, specialized loading, temperature management, or security procedures.
Cargo terminal operations · 1997
Liège cargo-handling services
Cargo-terminal capability at Liège Airport in Belgium, owned and operated by the company since its 1997 acquisition of Liège Airport Cargo Handling Services. The facility supports the carrier's European hub function and its nonstandard-cargo specialization.
Brand decisions
2017
Acquisition of a Boeing 747 through TaobaoOtherBackground
Large freighter aircraft are central to the airline's ability to carry general and nonstandard cargo on long-haul routes.
Action taken
Challenge Airlines purchased a Boeing 747 on the Chinese e-commerce website Taobao.
Aftermath
The transaction received substantial media attention and highlighted the company's use of large-capacity freighters.
Reported purchase price. Approximately US$23.3 million (2017)
2016
Rebranding as Challenge AirlinesStrategyBackground
The former CAL Cargo Airlines identity was replaced as the company and related operations developed a broader Challenge brand.
Action taken
The airline adopted the Challenge Airlines name.
Aftermath
The Israeli carrier became part of a wider Challenge-branded cargo platform that also included European affiliates.
2010
Private acquisition by Offer GilboaM&ABackground
CAL was privately acquired as the airline sought to develop its international operating footprint.
Action taken
Offer Gilboa purchased the airline and subsequently supported an expansion of flight operations, including daily Tel Aviv–New York cargo services.
Aftermath
The carrier increased its scheduled activity and continued developing its position as an international specialist freighter.
1999
Transition to independent scheduled operationsStrategyBackground
Before 1999, CAL generally leased aircraft from El Al when required for its charter activity. The company received Israeli government licences that enabled a more autonomous scheduled operation.
Action taken
CAL began operating scheduled cargo services with its own aircraft on 1 December 1999.
Aftermath
The decision established the airline as an independent scheduled freighter operator and supported the development of its international network.
Recent events
- 2017
CAL Cargo Airlines buys Boeing 747 through Taobao[1]
Product generation · Other
The airline drew attention after acquiring a Boeing 747 on the Chinese e-commerce platform Taobao for approximately US$23.3 million.
- 2010
Offer Gilboa acquires CAL Cargo Airlines[1]
M&A
The privately held airline was purchased by Offer Gilboa and subsequently expanded its flight operations, including daily cargo service between Tel Aviv and New York.
- 1999
CAL begins scheduled operations with its own aircraft[1]
Other
After receiving Israeli government licences, CAL Cargo Airlines began operating scheduled cargo services with its own aircraft on 1 December 1999, marking a major shift from its earlier reliance on aircraft leased from El Al.
Sources1 sources
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