Atlas Air Worldwide to Acquire Southern Air
Atlas Air Worldwide Holdings said it has agreed to buy Southern Air Holdings for $110 million in cash in a move that bolsters the company’s air cargo operations in North America.
Both companies operate or lease aircraft for airlines, express carriers and airfreight forwarders, with Atlas Air having the world’s largest fleet of Boeing 747 freighter aircraft and Southern Air operating mostly Boeing 777 and 737 aircraft from a hub at the Cincinnati/Northern Kentucky International Airport in Florence, Kentucky, and Boeing 767-300 aircraft at the airport in Miami, Florida. Both companies provide aircraft to DHL Express, a company that has recently expanded its international shipping operations in North America and is a unit of Germany’s Deutche Post DHL Group, which ranks No. 9 on the Transport Topics’ Top 50 Global Freight Carriers list.
The addition of Southern Air is expected to add $100 million to Atlas Air’s annual revenue of about $1.8 billion and provide a foundation for for additional growth, company officials said.
“The result will be a more diversified and profitable company offering access to the widest range of modern, efficient aircraft, together with a broader mix of services and a greater scale and global footprint,” William Flynn, CEO of New York-based Atlas Air, said in a Jan. 19 statement.
Daniel McHugh, CEO of Southern Air, said the deal gives the company “a strong and viable parent” and helps the company “to continue to grow.”
When completed, Southern Air’s two operating subsidiaries, Southern Air and Florida West International Airways, will operate as subsidiaries of Atlas Air, company officials said.
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