Atlas Air Takeover Approved by the Board

Originally published on Airways

Shareholders of Atlas Air Worldwide Holdings have decided to approve Apollo Global Management’s bid to acquire the company. Over 99% of Atlas shareholders voted in favor of the takeover, which is 80.9% of the outstanding stock shares of the company. Atlas Air (5Y) will keep current CEO John Dietrich and the current executive team.

The final voting results will be detailed in an 8-K form that 5Y will fill out with the United States Securities and Exchange Commission (SEC). The deal will make the cargo airline a privately owned company, and its stock will no longer be listed on the Nasdaq stock exchange. 

In August 2022, a consortium headed by Apollo Global Management and including Hill City Capital and J.F. Lehman & Co. acquired 5Y for US$5.2bn total, which includes a purchase price of US$3bn plus US$2.2bn in debt.

According to the cargo carrier, the deal should close in the first quarter of 2023.

A Sizable Cargo Fleet

Atlas Air has the most Boeing 747 freighters in its fleet, with 45 aircraft. The cargo carrier also operates 20 Boeing 767-300 and eight Boeing 737-800 aircraft on behalf of Amazon Air.

Additionally, its subsidiary cargo carrier, Polar Air Cargo (PO), operates six Boeing 747-8Fs, four Boeing 767-300s, and eight Boeing 777Fs. PO provides freight and charter service to companies including sports teams, charter customers, the U.S. military, airlines, and manufacturers among others. 

During the third quarter, 5Y had a net income of US$60m, down from US$120m in the previous quarter. This may be the last time the cargo carrier will publish quarterly figures. The company keeps buying Boeing 747s as their leases are up, with the most recent one being delivered to the airline in June of this year.

Atlas Air expects to complete the last two out of five purchases for 2022 during the fourth quarter.

N854GT Atlas Air “Qantas Freight” Boeing 747-8F. Photo: Brandon Farris/Airways

Comments from Atlas Air

Atlas Air CEO and President John Dietrich commented, “We are pleased to receive overwhelming support from Atlas Air Worldwide shareholders, who recognise this transaction provides compelling value to them while giving us the opportunity to execute our strategic plan.”

He further added, “This is another step forward to completing the transaction as we advance our leadership in airfreight and deliver high-quality services to our customers around the world.”