Atlas Air Plans Purchase of DHL Carrier Southern Air Holdings

Cargo carrier Atlas Air Worldwide plans to acquire air cargo charter company Southern Air Holdings in a transaction valued at $110 million that will combine two significant U.S. air cargo operators. With the purchase, which is subject to approval by the U.S. Department of Transportation, Atlas Air gains Kentucky-based Southern Air’s agreements with shipping company DHL Express and two additional aircraft types—the Boeing 777 and 737.

New York-based Atlas Air Worldwide is the parent company of cargo carrier Atlas Air and freighter leasing company Titan Aviation Holdings. Atlas is also the majority shareholder of Polar Air Cargo Worldwide, with DHL Express holding a 49-percent interest in the latter company. Atlas Air operates a fleet of Boeing 747-8 and 747-400 freighters; Polar Air operates 747-400s.

Atlas Air Worldwide expects the combination with Southern Air will add $100 million to its annual revenues. We are very pleased to announce a strategically compelling, highly complementary and immediately accretive acquisition of Southern Air,” William Flynn, Atlas Air Worldwide president and CEO, said on January 19. “We are eager to capitalize on the substantial opportunities that the transaction will provide, especially 777 and 737 aircraft operations.”

Based at Cincinnati/Northern Kentucky International Airport, a DHL Express hub, Southern Air Holdings is the parent company of Worldwide Air Logistics Group and its two operating subsidiaries: Southern Air and Florida West International Airways. Southern Air operates five Boeing 777-200Fs and five 737-400Fs under agreements with DHL. Miami-based Florida West operates three Boeing 767-300Fs for LAN Cargo.

Southern Air Holdings emerged from Chapter 11 bankruptcy reorganization in 2013. By joining the Atlas Air family of companies, Southern Air Holdings will now have a strong and viable parent to enable us to continue to grow,” said CEO Daniel McHugh. “We share the same commitment to providing superior customer service via our exceptional team of aviation professionals.”