World Airways, on Wednesday announced it had acquired North American Airlines, a small privately held New York-based carrier, for $35 million in cash.The airlines will be managed and operated independently of one another, said World Holdings CEO Randy Martinez. World operates 16 MD-11s and DC-10s in civil and military passenger and cargo charter services, while NAA operates three leased 767-300ERs and five leased 757-200ERs in civil and military charter services. It also has limited scheduled flights to the Caribbean and Hawaii. It employs 600.
According to Martinez, the purchase of North American "diversifies our revenue mix, strengthens our customer base and builds our reputation and leadership as a premier provider of charter airline services." NAA was founded in 1989 by former Civil Aeronautics Board Chairman Dan McKinnon, who in addition to owning the carrier served as its CEO prior to the sale to World.
Martinez said NAA has "no long-term debt" and has been profitable on an operating and net level since its launch. Revenues for 2004 were in excess of $200 million and net margins over the past five years have been in the range of "2% or better," he added. Last year World Holdings earned $25.6 million on sales of $503.9 million.
In conjunction with the purchase, World also announced changes to its management structure. Martinez, formerly president and CEO of World Air Holdings and World Airways, remains CEO of World Air Holdings. Jeff MacKinney, previously COO of Holdings and Airways, was promoted to president of Holdings. The company announced other promotions as well.
by Perry Flint
According to Martinez, the purchase of North American "diversifies our revenue mix, strengthens our customer base and builds our reputation and leadership as a premier provider of charter airline services." NAA was founded in 1989 by former Civil Aeronautics Board Chairman Dan McKinnon, who in addition to owning the carrier served as its CEO prior to the sale to World.
Martinez said NAA has "no long-term debt" and has been profitable on an operating and net level since its launch. Revenues for 2004 were in excess of $200 million and net margins over the past five years have been in the range of "2% or better," he added. Last year World Holdings earned $25.6 million on sales of $503.9 million.
In conjunction with the purchase, World also announced changes to its management structure. Martinez, formerly president and CEO of World Air Holdings and World Airways, remains CEO of World Air Holdings. Jeff MacKinney, previously COO of Holdings and Airways, was promoted to president of Holdings. The company announced other promotions as well.
by Perry Flint
