Atlas Air Worldwide has signed a share purchase agreement to acquire a 49% minority equity stake in Air Atlanta, a global provider of ACMI (Aircraft, Crew, Maintenance, and Insurance) leasing services.
Headquartered in Iceland with operating platforms in both Iceland and Malta, Air Atlanta provides CMI (Crew, Maintenance, and Insurance) services, passenger and cargo charter services, and management services, in addition to its core ACMI leasing business.
The stake in Air Atlanta establishes a strategic partnership that expands Atlas Air’s global operating platform and enhances access to widebody capacity in key international markets.
Through its Titan Aviation Holdings subsidiary, Atlas is separately acquiring the aircraft owned by the Air Atlanta group of companies and will lease the aircraft back to the Air Atlanta airline companies for continued operation.
Air Atlanta operates a fleet of 14 widebody freighters, including Boeing 747Fs and 777Fs, and also operates four passenger 777 aircraft.
According to Planespotters, Atlas Air’s fleet includes 43 747-400Fs, 17 747-8Fs, 5 767-300Fs and 11 777Fs.
In March, Atlas placed an order for a total of 20 Airbus A350Fs, with options for 20 more of the model.
“This transaction reflects Atlas’ disciplined approach to strategic growth in a structurally constrained widebody freighter aircraft market, and it further advances our One Atlas strategy” said Michael Steen, chief executive Officer, Atlas Air Worldwide.
“By combining Atlas’ global commercial platform with Air Atlanta’s complementary operating model and European-based footprint, we are expanding access to capacity and further strengthening our ability to serve customers worldwide and deliver value to our stakeholders.
“Air Atlanta has built a strong reputation over decades of operations, and we are excited to partner with their excellent team. Together, we believe this partnership will strengthen both organizations and position us for continued success in the evolving global aviation market.”
Air Atlanta will continue to operate under its existing leadership team and operating structure, while both companies collaborate commercially to pursue incremental global growth opportunities, said Atlas.
Following completion of the transaction, the “continuing Air Atlanta management team will retain a 51% controlling interest in the airline operating companies,” stated Atlas.
“We are pleased to partner with Atlas in a transaction that strengthens our long-term growth trajectory while accelerating our position as a leading European widebody ACMI operator,” commented Baldvin Hermannsson, chief executive, Air Atlanta.
“We strongly believe in the future growth potential of Air Atlanta, especially with the strategic partnership we are entering into with Atlas today. We will have wider market reach and be better positioned to deliver flexible, high-performing capacity solutions for our existing and future customers.”
“After many years dedicated to building Air Atlanta, I am proud to see the company enter its next chapter,” added Hannes Hilmarsson, executive chairman of the Air Atlanta Group, who will step down after 20 years in leadership roles with the business.
“I leave the business in excellent hands with the existing management team and with Atlas as the perfect partner for the future. Together, they provide a strong platform for continued growth and expansion.”
The transaction is expected to close in the third quarter of this year, subject to regulatory approvals and closing conditions.
