US DoT Authorizes Equity Buy of Atlas Air

DALLAS – Publicly traded American cargo airline Atlas Air (5Y) announced yesterday that the Department of Transportation (DoT) had approved the deal for a private equity buyout of the freight carrier. The deal is set to take place Friday this week.

The 31-year-old cargo airline has its headquarters in Purchase, New York, U.S. It recently took delivery of the last Boeing 747 ever produced.

Mega Deal

Atlas Air Worldwide Holdings is traded in NASDAQ as AAWW. The private equity consortium led by Apollo Global Management acquiesced in early August to buy 5Y's parent AAWW.

They intend to close the deal at US$5.2bn, which also includes US$2.2bn in debt. Apollo Global Management led consortium has J.F. Lehman & Co. and Hill City Capital as partners. Some experts state that the sale will likely to commenced by the end of 2023.

The airline announced its fourth-quarter and full-year 2022 results last month and has received all shareholder and regulatory approvals. It reported a net income of US$355.9m or US$10.53 per diluted share.

https://airwaysmag.com/the-jumbo-era-ends

Atlas Air is currently the largest operator of Boeing 747 in the world. It also offers passenger charter services and has a diversified customer base. Some of their customers include Amazon, DHL Express, Alibaba’s logistics arm Cainiao, and the U.S. Department of Defense.

As cited by Frieghtwaves, Atlas stated in a Securities and Exchange Commission filing, "As of March 14, 2023, all regulatory conditions to closing set forth in the merger agreement were satisfied. Subject to the satisfaction or waiver of the remaining closing conditions, the company expects to consummate the merger on or about March 17.”

Following the deal, there is more speculation in a few weeks that the DOT was taking a long time to consent to the deal because of the Biden government's pro-consumer competition agenda and worries over corporate consolidation.

After the closure of the deal, the company will be removed from the Nasdaq exchange. Subsequently, it will not be required to post the financial results.

Feature Image: N861GT Atlas Air Boeing 747-8F KPAE PAE | Photo: Daniel Gorun/Airways

https://airwaysmag.com/atlas-air-takeover-approved