Air Transport Services Group, Inc. (Nasdaq: ATSG), today announced that
it has agreed to acquire a 25 percent equity interest in West Atlantic
AB of Gothenburg, Sweden.
West Atlantic AB, through its two airlines, Atlantic Airlines Ltd. and
West Air Sweden AB, operates a portfolio of 40 aircraft, and is Europe’s
largest regional cargo aircraft operator. As an experienced provider of
unique, integrated ground-to-air logistics for the mail industry in the
five to 20 tonne segment, it offers highly customized services to the
global market utilizing its fleet of BAe ATPs, CRJ-200-PFs, and B737
aircraft. In addition, Atlantic Airlines Ltd. is currently adding the
B767 to its operating capability. Through its aircraft leasing company,
European Turboprop Management AB, West Atlantic also offers its
customers a dry lease option. Base maintenance and line maintenance
control services are provided through European Aircraft Maintenance
Ltd., another West Atlantic AB subsidiary.
Joe Hete, President and Chief Executive Officer of ATSG, said, “This
investment and our expanded working relationship with West Atlantic’s
management team represents a commitment from ATSG toward an increasing
role in the growth of the air-cargo market in the EMEA Region and
throughout West Atlantic’s range of operations. Our leading position in
the medium widebody freighter market and global reputation for
delivering complete medium-size freighter solutions to major logistics
services providers, together with West Atlantic’s complementary
strengths in providing time-definite air cargo services in Europe, make
us ideally suited to work together on emerging opportunities.”
The agreement is expected to close on Jan 2, 2014. The cash
consideration to be paid in January 2014 for the equity interest is
significantly less than ATSG’s historical cost to purchase and modify a
single 767 aircraft and is anticipated to generate strong returns. ATSG
will disclose additional information about the investment in its
year-end 10K filing.
Gustaf Thureborn, Managing Director and Chief Executive Officer of West
Atlantic, welcomed ATSG’s investment. He noted that both companies
foster a strong culture of commitment to their employees and
communities, as well as service excellence for their customers.
“We look forward to working with ATSG to augment West Atlantic’s own
fleet and air cargo service capabilities,” Thureborn said. “ATSG has
nearly 50 Boeing 767 freighter aircraft, more than 30 years of
experience providing highly reliable air network performance, integrated
maintenance programs specifically tailored to express networks, and an
array of additional resources including engines, parts, and technical
support that will extend our own strong capabilities in these areas.”
About ATSG
ATSG is a leading provider of aircraft leasing and air cargo
transportation and related services to domestic and foreign air carriers
and other companies that outsource their air cargo lift requirements.
ATSG, through its leasing and airline subsidiaries, is the world's
largest owner and operator of converted Boeing 767 freighter aircraft,
with 47 as of September 30, 2013. Through its principal subsidiaries,
including two airlines with separate and distinct U.S. FAA Part 121 Air
Carrier certificates, ATSG provides aircraft leasing, air cargo lift,
aircraft maintenance services and airport ground services. ATSG's
subsidiaries include ABX Air, Inc.; Airborne Global Solutions, Inc.; Air
Transport International, Inc.; Cargo Aircraft Management, Inc.; and
Airborne Maintenance and Engineering Services, Inc. For more
information, please see www.atsginc.com.
Copyright Business Wire 2013