World Air Holdings, parent company to World Airways and North American Airlines has entered into an agreement to be acquired by Global Aero Logistics for US$315m in an allcash 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.

The transaction is subject to the approval of World Air Holdings shareholders at a special meeting to vote on the transaction, and to obtaining required regulatory approvals and satisfying customary closing conditions. The transaction is expected to be finalised 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. It operates a fleet of 17 DC-10s and MD-11s.