World buys North American
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World buys North American
World Air buys a carrier
North American Airlines, a profitable charter and cargo company, agrees to sale for $35 million
COMBINED NEWS SERVICES
April 28, 2005
North American Airlines, a charter operation best known for ferrying vacationers to Club Med and soldiers to war zones, has been sold. World Airways, another operator of charter and cargo flights, has agreed to pay $35 million for North American.
Headquartered in Jamaica, North American is profitable - a rarity in the troubled airline industry - and generated more than $200 million in revenue last year, World Airways said.
The airline's health stems from its niche in specialized flights. Instead of going head-to-head with scheduled carriers, it quietly makes regular charter runs from New York to Club Med resorts in the Caribbean, and also makes regular runs to Aguadilla, Puerto Rico; Georgetown, Guyana, and Santiago, Dominican Republic. North American also operated planes for the presidential campaign of George W. Bush.
The announcement did not say what would happen to North American's 600 employees. But World Airways said the two airlines will continue to be run separately and that North American will maintain its base at Kennedy Airport.
North American is run by its founder and president, Dan McKinnon, 70, a former Navy pilot whom the Reagan administration called on to be the last chairman of the Civil Aeronautics Board. McKinnon's job was to oversee the board's demise to make way for an industry that would be regulated by market forces, not the government.
World Airways Holdings, based in Peachtree City, Ga., with 2,000 workers, has been profitable for the past three years, posting $25.6 million in net income on $504 million in sales last year. The acquisition will give World Airways three Boeing 767 and five Boeing 757 passenger aircraft equipped for international service, said World Airways, which has a fleet of 16 MD- 11s and DC-10s.
North American Airlines, a profitable charter and cargo company, agrees to sale for $35 million
COMBINED NEWS SERVICES
April 28, 2005
North American Airlines, a charter operation best known for ferrying vacationers to Club Med and soldiers to war zones, has been sold. World Airways, another operator of charter and cargo flights, has agreed to pay $35 million for North American.
Headquartered in Jamaica, North American is profitable - a rarity in the troubled airline industry - and generated more than $200 million in revenue last year, World Airways said.
The airline's health stems from its niche in specialized flights. Instead of going head-to-head with scheduled carriers, it quietly makes regular charter runs from New York to Club Med resorts in the Caribbean, and also makes regular runs to Aguadilla, Puerto Rico; Georgetown, Guyana, and Santiago, Dominican Republic. North American also operated planes for the presidential campaign of George W. Bush.
The announcement did not say what would happen to North American's 600 employees. But World Airways said the two airlines will continue to be run separately and that North American will maintain its base at Kennedy Airport.
North American is run by its founder and president, Dan McKinnon, 70, a former Navy pilot whom the Reagan administration called on to be the last chairman of the Civil Aeronautics Board. McKinnon's job was to oversee the board's demise to make way for an industry that would be regulated by market forces, not the government.
World Airways Holdings, based in Peachtree City, Ga., with 2,000 workers, has been profitable for the past three years, posting $25.6 million in net income on $504 million in sales last year. The acquisition will give World Airways three Boeing 767 and five Boeing 757 passenger aircraft equipped for international service, said World Airways, which has a fleet of 16 MD- 11s and DC-10s.
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Looks like World holdings is in the process of transferring business from one subsidiary to the other. Ghana was always a World Airways run and now North American will be doing it.
North American Airlines, a wholly owned subsidiary of World Air Holdings, Inc. will improve access to the West African nation of Ghana beginning July 1, 2005, with the introduction of weekly non-stop Boeing 767-300ER scheduled service from John F. Kennedy International Airport to Accra, the capital of Ghana. Currently, air service to Ghana from the United States is available only via Europe.
"This non-stop service will drastically reduce the travel time between the United States and Ghana," said Rob Binns, senior vice president, Marketing and Planning for World Air Holdings. "This also will be the only non-stop scheduled service to any country in West Africa, providing an important link between the United States and other West African nations."
The flights schedule will be: Depart JFK 11:00pm Friday Arrive Accra 1:30pm Saturday Depart Accra 12:00 noon Sunday Arrive JFK 6:55pm Sunday
"We will start our non-stop service with one flight per week," said Binns, "but we are ready to provide additional flights in response to the demand we see in the market."
North American Airlines, a wholly owned subsidiary of World Air Holdings, Inc. will improve access to the West African nation of Ghana beginning July 1, 2005, with the introduction of weekly non-stop Boeing 767-300ER scheduled service from John F. Kennedy International Airport to Accra, the capital of Ghana. Currently, air service to Ghana from the United States is available only via Europe.
"This non-stop service will drastically reduce the travel time between the United States and Ghana," said Rob Binns, senior vice president, Marketing and Planning for World Air Holdings. "This also will be the only non-stop scheduled service to any country in West Africa, providing an important link between the United States and other West African nations."
The flights schedule will be: Depart JFK 11:00pm Friday Arrive Accra 1:30pm Saturday Depart Accra 12:00 noon Sunday Arrive JFK 6:55pm Sunday
"We will start our non-stop service with one flight per week," said Binns, "but we are ready to provide additional flights in response to the demand we see in the market."
