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Apollo led investor group to acquire Atlas Air Worldwide

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Apollo led investor group to acquire Atlas Air Worldwide. Image: Atlas Air Worldwide
Apollo led investor group to acquire Atlas Air Worldwide. Image: Atlas Air Worldwide
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Atlas Air Worldwide, a leading global provider of outsourced aircraft and aviation operating services, announced that it has entered into a definitive agreement to be acquired by an investor group led by funds managed by affiliates of Apollo together with investment affiliates of J.F. Lehman & Company and Hill City Capital in an all-cash transaction with an enterprise valuation of approximately $5.2 billion.

Under the terms of the agreement, Atlas Air Worldwide shareholders will receive $102.50 per share in cash, representing a 57% premium to the 30-day volume-weighted average trading price per share of Atlas Air Worldwide common stock. Upon completion of the transaction, Atlas Air Worldwide will become a privately held company and shares of Atlas Air Worldwide common stock will no longer be listed on the Nasdaq stock exchange. Atlas Air Worldwide will continue operating under the Atlas Air Worldwide name, be led by John Dietrich and the current executive team and maintain its global presence.

“We believe this transaction will deliver immediate and certain value to Atlas Air Worldwide shareholders at a substantial premium, and we are pleased to reach this agreement with the Consortium,” said Duncan McNabb, Chairman of the Atlas Air Worldwide Board of Directors. “The Board’s decision to unanimously approve this transaction follows a careful evaluation and thoughtful review of value creation opportunities for shareholders. We believe this transaction is the right next step to maximize value for our shareholders and the best path forward to accelerate the Company’s ability to execute its strategic plan and achieve its long-term growth objectives.”

“Over our 30-year history, Atlas Air Worldwide has grown to become a global leader in airfreight, delivering high-quality services to our diverse roster of customers around the world,” said John Dietrich, President and Chief Executive Officer of Atlas Air Worldwide. “Following the closing of the sale to the Consortium, we will seek to leverage their resources, relationships and industry expertise to build on our strong financial and operational performance. Their investment in our company demonstrates their confidence in our people and our culture as we serve the growing needs of the global supply chain.”

“Atlas Air Worldwide is a market leader that continues to set higher standards for excellence within the airfreight industry,” said Apollo Partners Antoine Munfakh and Jason Scheir and J.F. Lehman & Company Partner Alex Harman on behalf of the Consortium. “With the strong market demand and long-term secular tailwinds for global air cargo services, Atlas is poised to capitalize on many opportunities for continued growth as a fund portfolio company of Apollo, J.F. Lehman and Hill City. We look forward to leveraging our resources, capital and experience in the sector to support the talented Atlas team, alongside our partners in this exciting next phase.”

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Air Freight

Siemens Healthineers and Wingcopter’s integrated drone delivery solution

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Siemens Healthineers and Wingcopter's integrated drone delivery solution. Image: Wingcopter
Siemens Healthineers and Wingcopter's integrated drone delivery solution. Image: Wingcopter
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Siemens Healthineers Middle East, Southern & Eastern Africa and Wingcopter GmbH have signed a Memorandum of Understanding to develop and roll out an integrated drone delivery solution to transport various laboratory diagnostics materials as well as other medical supplies in Africa. The combination of Siemens Healthineers’ Laboratory Diagnostics testing capabilities and Wingcopter’s drone delivery services will provide improved diagnostics and faster treatment. The solution will adopt the latest in digital technology provided by Siemens Healthineers and Wingcopter from highly automated drone delivery to Laboratory Information Systems which will accurately track and report results directly to the patients.

Ole Maloy, Managing Director of Siemens Healthineers Middle East, Southern & Eastern Africa, said, “At Siemens Healthineers, we are committed to providing access to care for everyone. Our partnership with Wingcopter will look to bridge the existing gaps in healthcare infrastructure, providing equitable and affordable access to diagnostic testing and medical supplies.”

The utilization of Wingcopter’s delivery drones interconnected with Siemens Healthineers’ laboratory diagnostics facilities will allow for quick and automated 2-way delivery of samples, medicine and other medical products. The battery-powered drones will be operated by Wingcopter, covering a range of 75 kilometers while maintaining the cold chain at all times. These sustainable and efficient drone delivery networks will allow for the centralization of sample testing and medical consumables distribution, resulting in improved access to diagnosis, faster turnaround time, increased efficiency and reduction in costs.

Tom Plümmer, CEO and Co-founder of Wingcopter GmbH, comments, “We are convinced that we have found the perfect partner for our bold ambitions to improve and save the lives of millions of people on the African continent and beyond. Partnering with Siemens Healthineers will bring us a big step closer to the goal we are working tirelessly towards: to make a real social impact worldwide for those who need it most through fast, reliable and sustainable drone delivery networks in the sky.”

Roughly half of the world’s population still lack access to essential health services such as timely diagnostic services, according to a report from the World Bank and WHO. While accessibility for diagnostic testing will increase, the drone delivery solution will also have a positive impact on the UN Sustainable Development Goals, from access to health, to potential reductions in carbon footprint and the risk of road accidents, to capacity building on drone operations. Wingcopter intends to train and upskill local young people, creating jobs and perspectives in the fast-growing drone industry. In doing so, Wingcopter is following the company’s approach in Malawi, where operations are run by an all-local, majority-female crew.

The exact time and place of the first deployment of drone-based lab sample deliveries will be announced in due time.

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Air Freight

IAG Cargo’s new cargo handling facility, New Premia at London Heathrow

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IAG Cargo's new cargo handling facility, New Premia at London Heathrow. Image: IAG Cargo
IAG Cargo's new cargo handling facility, New Premia at London Heathrow. Image: IAG Cargo
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IAG Cargo, the cargo division of International Airlines Group celebrates the official opening of its new cargo handling facility, New Premia at key international hub, London Heathrow.

New Premia will serve as IAG Cargo’s new home for handling premium loose shipments, enabling double the amount of cargo to be managed daily. To accommodate this increase in cargo handling capacity, significant focus has been given to designing bespoke IT systems and systems integration to regulate freight movements and allocations inside the facility.

The facility has been designed to handle more cargo for customers as efficiently as possible, with 11 new landside doors, meaning even faster engagement for drivers to collect or drop off cargo. The temperature-controlled building includes a state-of-the-art Constant Climate Quality Centre (CCQC) for pharmaceuticals, with 29 dedicated cool cells and temperature facilities available from +2°C to +8°C (COL), +15°C to +25°C (CRT) and -20°C (FRO) ensuring sensitive shipments are held in a temperature-controlled environment at all times. Additionally, the +15°C to +25°C (CRT) chamber includes two dedicated break and build workstations. The new facility is certified under IAG Cargo’s Good Distribution Practice (GDP) WDA licence issued by the UK Medicines & Healthcare Regulatory Agency.

Operationally, four large ‘transfer vehicles’ have been introduced which service the 20 new workstations. These vehicles pass through rapid-rise doors allowing cargo to be moved autonomously through the facility and into storage in advance of collection and delivery to the aircraft for exports and similarly the process works in reverse for imports. This process uses ground-breaking technology as the system is fully integrated with IAG Cargo’s existing Warehouse Management System – which is the first time globally that this integration has been delivered.

David Shepherd, Chief Executive Officer at IAG Cargo said: “The opening of New Premia is a pivotal milestone for IAG Cargo – the benefits it will bring both to our customers and our operational teams is huge. We strive to provide the best service for our customers and the investment into our IT systems will improve our operational performance, optimising the movement of cargo to support global trade.

“I’m proud of the entire team that have made it possible to officially launch today – it represents a truly exciting time for us as a business. I look forward to seeing New Premia now run at its full potential.”

Investment into learning and development remains key at IAG Cargo and to prepare for New Premia opening and the transition to the new model, IAG Cargo staff have received targeted training over the last 18 months and this training continues as normal operations takes place at the facility. New roles have also been created such as six new Planning Managers, who work closely with the Operations Duty Manager and are fundamental in delivering the day-to-day operations.

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SkyNRG publishes its 2023 Sustainable Aviation Fuel Market Outlook

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SkyNRG publishes its 2023 Sustainable Aviation Fuel Market Outlook. Image: SkyNRG
SkyNRG publishes its 2023 Sustainable Aviation Fuel Market Outlook. Image: SkyNRG
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SkyNRG, a leading supplier of sustainable aviation fuel, published its 2023 Sustainable Aviation Fuel Market Outlook. The report covers the current state and trends of the SAF market in the EU, the UK and the U.S. by assessing announcements of SAF projects and modelling out SAF capacity until 2050. The report continues to establish itself as a reference publication and a leading source of market information in the industry.

The report presents the latest policy developments, including a provisional deal reached on ReFuelEU between the European Parliament and Council just recently, the advancements of the UK mandate discussions and the implementation of tax credits in the United States.

Key takeaways from the report include recognising that blending mandates and production goals worldwide have the potential to trigger at least 12.8 Mt of supply by 2030. By 2050, Europe and the US could have around 120 Mt of SAF capacity installed.

For European markets specifically, SkyNRG’s report concludes that announced mandates for 2030 are likely to be met, albeit with some caveats. Reaching 2050 mandates in Europe would require the deployment of over 150 SAF refineries representing an ESG investment opportunity of 250 billion EUR.

To meet aspirational goals in the US, more announcements would be needed. Those are likely to come from facilities using corn ethanol and waste materials like agricultural waste, waste biogas or household waste.

Fats, oils and grease markets are under huge pressure and for announcements in this segment to materialize, feedstock needs to be freed up elsewhere (e.g. renewable diesel, biodiesel) or by producing more vegetable oils domestically.

To reach a domestic SAF production capacity of 27 Bgal (77 Mt) – equal to 2019 jet fuel demand – the US would have to deploy around 250 SAF refineries by 2050, representing a cumulative investment opportunity of 400 billion USD. If jet fuel demand increases more in line with IATA forecasts, pressure on feedstock is likely to increase which could drive up SAF prices.

Philippe Lacamp, Chief Executive Officer of SkyNRG said: “With hundreds of additional SAF factories needed, Europe and the United States alone offer ESG investment opportunities of USD 650 billion by 2050 and even more if we include upstream supply chains and related businesses. This is a very significant market that sustainability-oriented investors will want to play a part in.”

“SAF is increasingly accepted as the most effective measure to significantly reduce aviation emissions.” says Maarten van Dijk, Chief Development Officer of SkyNRG. “With key policies in place or underway, the industry now needs solid partnerships to deliver on the momentum we see today and realise the dramatic increase in production capacity needed to reach net zero.”

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