Atlas Air, the fifth largest cargo airline by visitors and the world’s largest operator of Boeing 747 freighter plane, is getting larger.
The New York-based provider on Thursday stated it should purchase a 49% stake in Iceland-based Air Atlanta, a supplier of contracted constitution service, in addition to its fleet of 14 owned widebody plane to develop capability amid tight provide for giant freighter plane.
As a part of the brand new possession construction, Air Atlanta’s CEO and vice presidents will purchase a 51% controlling curiosity within the working firms (Air Atlanta Icelandic and Air Atlanta Europe). Air Atlanta will proceed to function beneath its present management crew and working construction, whereas each firms collaborate commercially to pursue incremental world progress alternatives.
Atlas Air will purchase the Air Atlanta plane by its Titan Aviation Leasing subsidiary and lease the plane again to Air Atlanta airways to proceed working. Sale-leasebacks are monetary transactions that enable plane house owners to extract capital from property whereas retaining their use by fastened lease funds to the brand new proprietor.
Atlas Air stated that partnering with Air Atlanta strengthens its potential to offer freight service to enterprise at a time when many giant freighters are nearing retirement age and producers have been unable to extend manufacturing.
Between its Iceland and Malta licensed airways, Air Atlanta operates 18 widebody plane and owns 14 of them: 12 Boeing 747-400 cargo jets, two Boeing 777-300 passenger-to-freighter conversions, and 4 777 passenger jets. It additionally owns 4 Boeing 747-400 cargo jets which are leased to Saudia Cargo, in keeping with aviation databases.
Air Atlanta Government Chairman Hannes Hilmarsson will step down after 20 years in management roles with the corporate.
The transaction is anticipated to shut within the third quarter following customary regulatory opinions.
“Teaming up with a robust, skilled worldwide operator akin to Atlas solely strengthens Air Atlanta and opens new alternatives for continued progress in an ever-evolving world market. The partnership can develop entry to plane, improve our potential to resume the fleet and assist worth creation for our staff and prospects world wide,” stated Air Atlanta CEO Baldvin Hermannsson on LinkedIn.
Atlas Air controls about 50% of the long-term constitution cargo enterprise for giant plane and crews. Collectively, the businesses will management 60% of outsourced widebody lease-and-fly agreements and about 13% of the big widebody freighter fleet, stated Commerce and Transport Group on LinkedIn. It and different analysts venture the widebody freighter market could have constrained provide by the tip of the last decade.
Air Atlanta operates two 777-300 transformed freighters for Hong Kong-based Fly Meta, which leased the plane and positioned them with Air Atlanta to function on its behalf. Different Air Atlanta prospects embody Magma Aviation and Community Airline Administration. All three firms are cargo administration firms that lack plane working certificates and depend on third-party carriers as their working platform.
Atlas Air made a splash in March when it ordered 20 A350 freighters from Airbus after many years as an all-Boeing airline.
In associated information, Titan Aviation Leasing introduced on Friday the sale of a Boeing 767-300 transformed freighter, beforehand leased by Ethiopian Airways, to Cargo Plane Administration, the leasing arm of Air Transport Companies Group.
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