ATA buys World and NAA
04-09-2007, 09:01 AM
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ATA buys World and NAA
From ATW NEWS
US consolidation begins with ATA acquisition of World Air
Monday April 9, 2007
Airline consolidation in the US began last week on a smaller scale than the failed mega-merger between US Airways and Delta Air Lines and AirTran Airways' contentious pursuit of Midwest Air Group as ATA Airlines parent ATA Holdings bought out World Air Holdings, parent of World Airways and North American Airlines, for $315 million in cash or $12.50 per share.
The deal, expected to be completed in the third quarter, is subject to the approval of World stockholders and US authorities. It will bring together two companies that rely heavily on their charter businesses, operate similar fleets and maintain bases in Oakland.
Meanwhile, ATA Holdings is changing its name to Global Aero Logistics, which it said "better reflects our company's diverse, worldwide operations." The three airlines will remain independent.
GAL President and CEO Subodh Karnik said the acquisition "provides the strength and corporate flexibility for each of these airlines to shape a high-growth future." WAH Chairman Ronald Fogleman said the sale "is in the best interests of our shareholders," who will receive a 56% premium on the average closing price for the 30 trading days prior to WAH's September formation of a committee "to explore strategic alternatives."
ATA operates commercial and military charters in addition to a limited scheduled service network focused on Oakland, Chicago Midway and Hawaii that is buttressed heavily by a codeshare arrangement with Southwest Airlines. According to the Ascend CASE database, its fleet of 29 aircraft comprises 12 737-800s, three 737-300s, six 757-200s, four 757-300s used for scheduled service and charters and a charter fleet of four L-1011s. It has four DC-10-30s that currently are in storage. It purchased seven DC-10-30s from Northwest Airlines in December (ATWOnline, Dec. 7, 2006).
World Airways (MD-11s and DC-10-30s) and NAA (757-200ERs and 767-300ERs) operate a combined 17 aircraft. NAA flies limited long-haul scheduled flights from New York JFK and Baltimore/Washington International. World Airways' largest customer is the US military.
by Brian Straus
(Probably should have posted this under "Major")
US consolidation begins with ATA acquisition of World Air
Monday April 9, 2007
Airline consolidation in the US began last week on a smaller scale than the failed mega-merger between US Airways and Delta Air Lines and AirTran Airways' contentious pursuit of Midwest Air Group as ATA Airlines parent ATA Holdings bought out World Air Holdings, parent of World Airways and North American Airlines, for $315 million in cash or $12.50 per share.
The deal, expected to be completed in the third quarter, is subject to the approval of World stockholders and US authorities. It will bring together two companies that rely heavily on their charter businesses, operate similar fleets and maintain bases in Oakland.
Meanwhile, ATA Holdings is changing its name to Global Aero Logistics, which it said "better reflects our company's diverse, worldwide operations." The three airlines will remain independent.
GAL President and CEO Subodh Karnik said the acquisition "provides the strength and corporate flexibility for each of these airlines to shape a high-growth future." WAH Chairman Ronald Fogleman said the sale "is in the best interests of our shareholders," who will receive a 56% premium on the average closing price for the 30 trading days prior to WAH's September formation of a committee "to explore strategic alternatives."
ATA operates commercial and military charters in addition to a limited scheduled service network focused on Oakland, Chicago Midway and Hawaii that is buttressed heavily by a codeshare arrangement with Southwest Airlines. According to the Ascend CASE database, its fleet of 29 aircraft comprises 12 737-800s, three 737-300s, six 757-200s, four 757-300s used for scheduled service and charters and a charter fleet of four L-1011s. It has four DC-10-30s that currently are in storage. It purchased seven DC-10-30s from Northwest Airlines in December (ATWOnline, Dec. 7, 2006).
World Airways (MD-11s and DC-10-30s) and NAA (757-200ERs and 767-300ERs) operate a combined 17 aircraft. NAA flies limited long-haul scheduled flights from New York JFK and Baltimore/Washington International. World Airways' largest customer is the US military.
by Brian Straus
(Probably should have posted this under "Major")
