ATSG Acquires Equity Interest in West Atlantic AB
December 09 2013 - 4:13PM
Business Wire
Strategic Alliance Expands Air Cargo
Opportunities in Europe
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.
ATSGQuint O. Turner, Chief Financial Officer, 937-382-5591orWest
AtlanticRussell Ladkin, Director Sales &
OperationsRussell.Ladkin@WestAtlantic.eu
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