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Global Aero Logitistics, who owns ATA, has bought out World Air Holdings, who owns World Airways and North American Airlines.
http://biz.yahoo.com/pz/070405/116918.html
This won't officially go through until Fall, but I wonder what that will mean for all of these airlines.
It's really anyone's guess. Plan is to operate 3 separate airlines at first.....who knows thereafter.
-Rich
All three's operations are military charters, so they can build on that. However, that's now an interesting fleet.
World has a bunch of DC-10s, ATa had jsut bought 9 from NW, that also compliments the MD-11s.
ATA and NAA both have 757-200s (ATa having the -300s), which are complimented by NAA's 767-300s.
The 737-300/-800 is the only odd type that doesn't fit with this whole deal. Those aircraft mainly run ATA's passenger flights, which were rumored to go out the door anyway.
Dont forget World is adding 744F's next year too. Im being positive about this move, remember ATA is not buying World directly, but its the holding company that owns ATA. There are a number of examples of holding companies that own a few airlines under one roof. I think you will see each of the three carriers have their own niche with World being Cargo, ATA being scheduled service and NAA handling charter. Of course, each will cross into the other's niche from time to time (namely in military and certain scheduled services--remember ATA has a close relationship with SWA and North American is starting a close relationship with Virgin Nigeria). Of course in this industry you never say never, so who knows what will happen in the long term, but for the short term after the sale is completed this fall I dont see any drastic changes.
I doubt it would ever be as cut and dry like that. AMC has specific needs that cannot be filled by the 767/DC-10 that the MD-11 is used for. Similarily, the MD-11/DC-10 are pretty much out of the fixed buy market (channel missions, etc) where the 767 is mainly used. As well, I doubt we'll see ATA doing sked service for that much longer. Because of this, I think we'll see alot of the same for a while with the parent company reacting to changes in the market as it sees fit down the line. However, World's pax MD-11's are probably on their way out sooner than later.Quote:
Originally Posted by Nycfly75
-Rich
basically, it's going to be another republic holdings. they own and operate 3 airlines indapendant of each other. this might be good news for all, could lead to financing for furure airplane purchases or expansions.
As much as I might not like it, consolidation between the 3 would make most sense. I doubt it will happen any time soon, but doing so enables the parent company to really benefit from having 3 airlines and take advantage of those economies of scale/scope. This was something World never did when it purchased North American......and we see how that worked out.Quote:
Originally Posted by cancidas
-Rich
ATA will certainly be staying in the scheduled arena for the long term. The latest is Hobby will add customs to handle ATA international flights for WN. Yes its coming. Like Vin said anything can really happen here, each carrier can keep to their niche market or the parent company can integrate all three under one brand and operation, which is the ideal thing to do. In the long term the cost savings are huge. I'm sure each of these airlines have redundant operations, i.e HR, Accounting, Regulatory...etc.
I'm thinking most front line/air side stuff would remain as is, while there would be "efficiencies" gained on the business side/back office jobs, as Tommy said.
As implied here, I do think that ATA will ease away from military charter and become Southwest's feed to international service. ATA will also probably pursue vacation charters a little more as well.
I don't think that the pax MD-11s will be affected for several years until military needs drop some. AMC needs it too much right now and all three airlines need all the aircraft they can have to accomplish the requested missions.
I agree wit Tommy and Matt that if anyplace is going to be integrated in the short term after the deal closes, it will be back end and corporate (HR, Marketing, Sales, etc) Phill I think some MD11's are being given back to UPS, I dont know if they are cargo or pax (which UPS would convert to cargo) versions maybe Rich can chime in on that one.
Not to stir the pot, but before all of this, the original rumor I had heard was that FedEx was buying World in order to get their MD-11s.
I think this is such an interesting acquisition, as these three companies which operate three different markets each can combine to make something really nice.
ATA has been wanting 767s for some time now, and now they finally havehtem with NAA!
World will be short 3 of its pax MD-11's by this time next year. They're going to UPS in a staggered time frame to become freighters.....the first of which is leaving at the end of this year. The other pax MD-11's have decent length contracts that were negotiated not too long ago, but have the likelihood to be converted to freighters at some point.
AMC's needs have changed alot in the past couple of years. They have really moved from the large wide-body a/c to smaller (767/757) size a/c in regards to troop movement. Every fixed buy award is now for 767 and smaller....just 2 years ago we ran a few MD-11's across the Pacific and DC-10's from Norfolk as fixed missions. However, the military has been known to change things right back....but this is not guaranteed business which is why World was really moving towards diversifying to longer term ACMI Cargo contracts.
The most likely combination has to be ATA and North American with those 767/757's. We'll see what happens.....
-Rich
Well, ATA bought those DC-10s with the hopes of military charters. Would they actually try to use them for scheduled ops?
Since they can't operate them for another year for AMC flights, that would be the only choice. However, I have a feeling those 10's are coming to World. :wink:Quote:
Originally Posted by Phil D.
-Rich
Phil more then 50% of ATA's revenue is from AMC charters, why would they "ease" away from making a profit?Quote:
Originally Posted by Phil D.
It's actually closer to 40%. If they're not operating widebody a/c for the military, the "easing" will happen very naturally.Quote:
Originally Posted by T-Bird76
-Rich
I think we'll see a merging of brand down the line aways - Maybe not this year or next year - but eventually.
Tom
Oh just to clear something up. Global Aero doesn't own ATA, Global Aero is ATA. ATA Holdings changed its name, so its really ATA who is buying World and NA. After doing some research its clear ATA is going for the military charter market. The filings on the buyout report them to be the biggest lift provider to the military and after this they will secure that position entirely. Smart move on ATA's part, one of the most common ways for companies to grow in today's market is via buying outs, organic growth costs too much money.