What/who is Atlas going to buy?

Classicdriver

Well-known member
Joined
Jan 25, 2006
Posts
271
Total Time
5000+
Purchase, NY - November 3,2009 -- Atlas Air Worldwide Holdings, Inc. (AAWW or the Company) (Nasdaq: AAWW), a leading provider of global air cargo assets and outsourced aircraft operating services, today announced the completion of its offering of AAWW common shares to the public. The offering, which was priced at $25.75 per share on October 28, 2009, covered an aggregate of 4,600,000 common shares, including 600,000 shares purchased by the underwriters to cover over-allotments. The aggregate net proceeds from the offering, after underwriting discounts and estimated expenses, were approximately $112.5 million. The Company expects to use the proceeds for general corporate purposes, including the financing of capital expenditures or funding of potential acquisitions or other business transactions.


So, Atlas does a secondary offering where they get $112.5 mil in cash. They already had $481.7 mil in cash. SO what are they gonna do with it.

First guess would be, buy some more/new planes. The 747-8's are in pretty good shape, finance wise with Boeing extending out the payments as a result of the delays. Atlas has expressed an interest in a light twin, 767/777. Rumor has it, the VP of Ops has said he could have the crews up and running in 90 days for a light twin. Atlas just needs a customer. Rumors of a South American interest has been around and then DHL of course. With Polar in bed with DHL, Atlas has a close relationship there. ANA is another possible customer. Atlas already has a deal in waiting with ANA for a pair of 747's.

Next to consider would be an outright purchase of a 767 operator. First in line, ABX. They are ACMI and have 767's. They have a relationship with DHL, ANA and have work to S. America. Only downer is they don't have a relationship with the military, nor any Pax experience. Also, I heard they have seen movement in their much delayed negotiations for a new contract. Labor peace may be a prerequisite.

Next on the HIT parade, get it, "hit" parade. Yuck, yuck. Next, World. There have been some posts on other forums/threads where World guys were asking the question because of some actions by management. They have a pair of 747-400's cargo and are in the pax service with the military with MD-11’s and DC-10’s. Also, if Atlas bought them, all opposition to Atlas picking up the "Houston Express" would be dropped.

Would they buy the Holding Global Aviation Holdings outright, that also has North American? Six 767's and three 757's. Maybe just North American, as a small operation to manage any future pax service. They are real cozy with the military pax side and some nice charter work.

Last but not least, was this a move to make them buyable? Drove the stock price down over 25% and improved their cash position, which might have been a precondition to purchase. The buyer?

What say you, experts of the aviation world?
 

CCDiscoB

Well-known member
Joined
Mar 15, 2002
Posts
779
Total Time
7500
Yup, the writing on the wall is getting easier to read. I predict Global (World and North American). Atlas wants to get into the AMC PAX business ASAP. PAX = F/As and an entirely new training program etc, etc. With World you get instant AMC access. With North American you get ETOPS and certificate you can add a 777 to.
Also, if Atlas bought them, all opposition to Atlas picking up the "Houston Express" would be dropped.
Exactly, that is another big issue. World is awaiting word on DOT approval to operate IAH-LAD.
 

av8trinabarrel

Well-known member
Joined
Oct 22, 2006
Posts
258
Total Time
uhhhh!
Wrong..... I heard you bought NetJets and now you can haul all of our planes to china. Uncle Warren needs help to pay for that new railroad!
 

CCDiscoB

Well-known member
Joined
Mar 15, 2002
Posts
779
Total Time
7500
No, what you saw was the SONAIR charter, World lost that contract as of next spring. Atlas got it. World applied for scheduled service which would prohibit Atlas from operating with Angolan F/As, which is one of the things SONAIR wants.
 

B747FR8DAWG

GIANT 747
Joined
Jan 23, 2005
Posts
465
Total Time
> 1
We're gonna buy UPS or maybe FedEx (just kidding) not to offend any of the Brown or Purple boys out there. Not sure what's going on behind the scenes here, heard that this money could be for further deposits on the 747-8's we have on order, supposed to get the first one a year from now.
 

dojetdriver

Well-known member
Joined
Oct 29, 2004
Posts
1,998
Total Time
7000
No, what you saw was the SONAIR charter, World lost that contract as of next spring. Atlas got it. World applied for scheduled service which would prohibit Atlas from operating with Angolan F/As, which is one of the things SONAIR wants.
Gotcha, thanks. I was thinking that even though it's charter/contract, World would already have the approval since they're providing the service. Even though it's for somebody else.
 

Classicdriver

Well-known member
Joined
Jan 25, 2006
Posts
271
Total Time
5000+
No, what you saw was the SONAIR charter, World lost that contract as of next spring. Atlas got it. World applied for scheduled service which would prohibit Atlas from operating with Angolan F/As, which is one of the things SONAIR wants.
There you go believing the World marketing guy. All F/A's are being hired from the IAH area. Not sure how many Angolans live there. No Angolans in the cockpit either.
 

WabiSabi

Well-known member
Joined
May 30, 2006
Posts
437
Total Time
n/a
Next on the HIT parade, get it, "hit" parade. Yuck, yuck. Next, World. There have been some posts on other forums/threads where World guys were asking the question because of some actions by management. They have a pair of 747-400's cargo and are in the pax service with the military with MD-11’s and DC-10’s. Also, if Atlas bought them, all opposition to Atlas picking up the "Houston Express" would be dropped.

\
I thought that Atlas had secured the contract and that it was already a done deal.
 

jmreii

Well-known member
Joined
Jul 15, 2006
Posts
584
Total Time
11,600
We're gonna buy UPS or maybe FedEx (just kidding) not to offend any of the Brown or Purple boys out there. Not sure what's going on behind the scenes here, heard that this money could be for further deposits on the 747-8's we have on order, supposed to get the first one a year from now.

If you don't have a fleet of trucks to go with it, don't bother.
 

Classicdriver

Well-known member
Joined
Jan 25, 2006
Posts
271
Total Time
5000+
I thought that Atlas had secured the contract and that it was already a done deal.
Atlas/Sonair require a permit to operate this flight. World has opposed this permit process and submited for rights to operate a flight as a scheduled service. If they can't get it with Sonair, they'll do it on their own. No telling where DOT will come down on this. So Atlas/Sonair are moving forward on the assumtion that things will go their way.
 

WabiSabi

Well-known member
Joined
May 30, 2006
Posts
437
Total Time
n/a
Atlas/Sonair require a permit to operate this flight. World has opposed this permit process and submited for rights to operate a flight as a scheduled service. If they can't get it with Sonair, they'll do it on their own. No telling where DOT will come down on this. So Atlas/Sonair are moving forward on the assumtion that things will go their way.
Thanks. Do you have any idea when the DOT will make their final decision on World's application for scheduled service?
 

BlueCanoe

Smurfy Good
Joined
Sep 6, 2003
Posts
248
Total Time
>.5

Last but not least, was this a move to make them buyable? Drove the stock price down over 25% and improved their cash position, which might have been a precondition to purchase. The buyer?

What say you, experts of the aviation world?


Doubt they'd be bought...big price to pay since the got the "Poison Pill" in May.

Source: http://www.atlasair.com/holdings/archive.asp?Pressid=480

News Releases

Print this Release
Atlas Air Worldwide Holdings, Inc. Adopts Stockholder Rights Plan

Tuesday, May 26, 2009 -- Atlas Air Worldwide Holdings, Inc. (AAWW) (Nasdaq: AAWW) announced that its Board of Directors has approved the adoption of a stockholder rights plan. The rights plan is designed to encourage the fair treatment of AAWW stockholders in connection with attempts to acquire AAWW on terms or through tactics that could deny all stockholders the opportunity to realize the full value of their investment. AAWW said that the plan is also designed to enhance the ability of the Board of Directors to protect the interests of AAWW stockholders.

AAWW stated that the rights are not being issued in response to any outside effort to gain control of AAWW, and that it is not aware of any takeover attempt. The rights will not affect AAWW's reported earnings per share.

Under the plan, one right will be issued for each share of AAWW common stock outstanding on June 5, 2009. Shares of common stock that are issued after that date will be issued with an attached right. Each right would initially represent the right, under certain circumstances, to purchase a share of AAWW common stock at an exercise price of $55.00 per share.

If a person or group acquires beneficial ownership of 15% or more of the then outstanding shares of AAWW's common stock or announces a tender or exchange offer that would result in such person or group owning 15% or more of the then outstanding AAWW common stock, each right would entitle its holder to purchase shares of AAWW common stock having a market value of two times the exercise price of the right. The rights, however, would not be triggered by any person or group that is presently the beneficial owner of 15% or more of AAWW's outstanding common stock on the date of the adoption of the Rights Agreement, unless such person or group acquires beneficial ownership of additional shares of AAWW common stock in the future (other than pursuant to a stock dividend or stock split).

The Board of Directors may redeem the rights at the redemption price of $0.01 per right, subject to adjustment, at any time prior to the earlier of May 25, 2012, the expiration date of the rights, or the date of distribution of the rights, as determined under the plan.

Details of the stockholder rights plan will be outlined in a letter which will be mailed as soon as practicable after June 5, 2009, to all stockholders of record on such date.
 

EuroWheenie

Well-known member
Joined
Jan 15, 2005
Posts
2,457
Total Time
Cool
500 mill doesn't go a very long way when you've got a bunch of 250 mill aeroplanes inbound.

Boeing usually require 25% of purchase price at contract signing, another 25% a year prior to delivery and the balance the day the new toy is handed over. Could very well be that's what the money will be used for, knowing that obtaining finance through the usual suspects has become rather difficult as of late.

I therefore expect that Atlas will be going for a purchase of the -8s, then go for a sell and lease back deal, as it doesn't really make financial sense tying up that much capital in flying aluminium.
 

Arkady

Active member
Joined
Mar 6, 2004
Posts
29
Total Time
10000
A few more recalls of pilots & some delayed/revised/recalls of PFE's due to a bit more increased bid'ness. I think we will still have approx 36 pilots on furlough after the latest recalls get back in their seats (still depressing but quite an improvement over the original 130 or so originally on the pilot furlough list). The Classics are still slated to (eventually) go to the bone yard but that schedule is forever bending with the (mostly military) customer demands.
 

ASA_Aviator

Well-known member
Joined
Nov 7, 2005
Posts
1,136
Total Time
Enough
A few more recalls of pilots & some delayed/revised/recalls of PFE's due to a bit more increased bid'ness. I think we will still have approx 36 pilots on furlough after the latest recalls get back in their seats (still depressing but quite an improvement over the original 130 or so originally on the pilot furlough list). The Classics are still slated to (eventually) go to the bone yard but that schedule is forever bending with the (mostly military) customer demands.
Well, that's a start. I'm hoping Atlas hires in 2010. :)
 
Top