World Adds Total of Eight 767 and 757 Aircraft
World Air Holdings Wednesday announced the acquisition of North
American Airlines, Inc., a privately held airline based in Jamaica,
NY, for $35 million in cash.
North American generated more than $200 million in revenues in
2004 and has been consistently profitable since its inception. The
company has no long-term debt and its fleet of eight leased
aircraft have an average age of less than seven years.
"The inclusion of North American under the umbrella of World Air
Holdings diversifies our revenue mix, strengthens our customer base
and builds our reputation and leadership as a premier provider of
charter airline services," said Randy Martinez, chief executive
officer of World Air Holdings. "North American greatly expands our
product mix in the military and commercial charter market, with its
three Boeing 767 and five Boeing 757 passenger aircraft, and
complements the service provided by World Airways with larger
wide-body aircraft. North American provides immediate access to a
fleet of mid-size aircraft, enhancing our flexibility and
increasing our ability to profitably expand service in commercial
markets.
"As we reviewed potential strategic options, it was clear there
was no better option for World Air Holdings than the acquisition of
North American Airlines," Martinez said. "We've known and teamed
with North American for a number of years in our Air Mobility
Command (AMC) business, and the company has built an outstanding
reputation."
In addition to being the first to provide 767 service to the
AMC, North American is the charter operator for Club Med travel out
of New York and operated the Bush-Cheney campaign aircraft in
2000.
"The North American aircraft are popular with a variety of
customers, including tour operators, which supports our corporate
goal of diversifying our revenue sources," Martinez said. "North
American's twin-engine jets are approved for extended over-water
operations (ETOPS), which World Air Holdings now can include in its
international service options."
World Airways and North American will be managed independently
under their respective operating certificates. North American will
maintain its operational headquarters at John F. Kennedy
International Airport in New York, with World Airways and World Air
Holdings continuing to be based in Peachtree City.
World's fleet consists of 16 wide-body MD-11 and DC-10 passenger
and cargo aircraft, and North American operates three Boeing
767-300ER passenger aircraft and five Boeing 757-200ER passenger
aircraft. World Airways will add another MD-11F cargo aircraft to
its fleet in May.
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