Deal expands Atlas’s global reach and gives it access to international widebody capacity.
US-based cargo carrier Atlas Air Worldwide is to take a 49% stake in Icelandic wet-lease and aircraft management specialist Air Atlanta.
Under the planned transaction, carried out through its Titan Aviation subsidiary, Atlas will also acquire Air Atlanta’s owned widebodies and lease them back to the operator.
Air Atlanta, which has operating platforms in Iceland and Malta, uses a fleet of 14 widebody freighters, including Boeing 747s and 777s, as well as four passenger 777s.
Atlas says the deal enhances its access to widebody capacity in key international markets.
“This transaction reflects Atlas’s disciplined approach to strategic growth in a structurally constrained widebody freighter aircraft market, and it further advances our One Atlas strategy,” says Atlas chief executive Michael Steen.
“By combining Atlas’s 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.”
At the same time a group comprising the chief executive and vice-presidents of Air Atlanta has acquired a 51% stake in Air Atlanta Icelandic and Air Atlanta Europe.
“It is a significant milestone for us to acquire the majority stake in Air Atlanta, and it reflects the strong confidence we have in the company‘s business model, our people and Air Atlanta’s future growth potential,” says Air Atlanta chief executive Baldvin Hermannsson.
“Teaming up with a strong, experienced international operator such as Atlas only strengthens Air Atlanta and opens new opportunities for continued growth in an ever-evolving global market.
“The partnership can expand access to aircraft, enhance our ability to renew the fleet and support value creation for our employees and customers around the world.”
Air Atlanta’s management team will remain in place and continue to lead the company’s development. Executive chair Hannes Hilmarsson, though, will step down after 20 years in leadership roles with the company.
The partners aim to close the deal in the third quarter, subject to regulatory approvals and closing conditions.
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