World Air Holdings — parent company to World Airways and North American Airlines — announced this week that it has entered into an agreement to be acquired by Global Aero Logistics (GAL) for US$315m in an all-cash transaction. MatlinPatterson Global Opportunities Partners II is the majority shareholder of Global Aero Logistics, which owns ATA Airlines. As a result of the transaction, Global Aero Logistics will operate all three independent airlines under one umbrella.

Under the terms of the agreement, World Air Holdings shareholders will receive $12.50 in cash for each share of World Air Holdings common stock they own. The board of directors of World Air Holdings approved the agreement and recommends that World Air Holdings shareholders vote in favour of the transaction. The transaction is subject to the approval of World Air Holdings shareholders and is expected to be fi nalised during the third quarter of 2007.

World Airways provides customised transportation services for major international passenger and cargo carriers, international freight forwarders, the US military and international leisure tour operators. Founded in 1948, World Airways operates a fl eet of 17 DC-10s and MD-11s.