Freight ATSG to acquire Omni Air International
- Omni Air International
Air Transport Services Group (ATSG) has announced, that it has agreed to acquire Omni Air International. With the addition, the group aims to add US$430 million in revenues.
With the acquisition of Omni Air International, ATSG seeks to furthermore strengthen its presence in the air transport market. Well-known subsidiary airlines of ATSG are ABX Air and Air Transport International (ATI). Omni Air International is set to expand the group´s variety of services.
Omni Air International is a passenger ACMI and charter services provider, specialized in serving the U.S. and allied foreign governments and commercial customers. The carrier was founded back in 1993 and operates as IATA Operational Safety Audit registered airline.
ATSG will experience a further diversified customer base, with a significant presence in the growing government passenger charter services market at the same time. With the acquisition of Omni Air, the group´s fleet will expand by 13 aircraft, including three Boeing 777-200ER. Omni Air currently flies with seven Boeing 767-300ERs, three B767-200ERs and three B777-200ERs.
ATSG declared in a statement: "The transaction will further ATSG’s strategic goals by adding growth opportunities with long-time and blue-chip customers, and by positioning it to meet customers’ global cargo needs with the longer-range 777 platform. The strong recurring cash flows from Omni Air’s operations augment the sustainable cash flow generated by ATSG’s dry leasing business model."
ATSG aims to add over US$430 million in annualized revenues. The group´s investment hurdle will be exceeded and is expected to be immediately accretive to ATSG´s adjusted earnings per share in 2019.
Joe Hete, President and Chief Executive Officer of ATSG added: "Combining ATSG and Omni Air’s operating expertise and array of aircraft options fulfils several of our principal goals – to broaden ATSG’s ACMI capabilities; grow and diversify our revenue streams with government and commercial customers; and reach new global markets with our full range of leasing, operating, and aircraft maintenance capabilities. We look forward to working with Omni’s excellent management team to pursue new growth opportunities, including serving the expanding global e-commerce demand.”
According to ATSG, the all-cash acquisition of Omni Air is expected to close during the fourth quarter of 2018. This, however, is subject to regulatory approvals.
Source © atsginc.com