Atlas Air Worldwide Holdings will acquire Southern Air Holdings, Inc. for approximately US$110 million in cash, subject to regulatory approval from the US Department of Transportation.

“We are very pleased to announce a strategically compelling, highly complementary and immediately accretive acquisition of Southern Air,” said William J. Flynn, president and CEO of Atlas Air Worldwide. “And we are eager to capitalize on the substantial opportunities that the transaction will provide, especially 777 and 737 aircraft operations. The result will be a more diversified and profitable company offering access to the widest range of modern, efficient aircraft, together with a broader mix of services and a greater scale and global footprint that will drive significant value for our customers and shareholders.”

Atlas will purchase both of Southern Air Holdings’ subsidiaries, Southern Air and Worldwide Air Logistics Group. Southern Air has a fleet of five Boeing 737-400Fs and five 777Fs which it flies for DHL Express on an ACMI basis.

“We very much look forward to joining the Atlas Air family of companies,” said Daniel J. McHugh, CEO of Southern Air Holdings. “We share the same commitment to providing superior service via our exceptional team of aviation professionals. And Southern Air will now have a strong and viable parent to enable us to continue to grow.”

According to Atlas, the deal will result in about US$100 million of additional revenue for the group because the two companies have complementary business operations.

Atlas Air Worldwide provides services such as ACMI, CMI, charters and dry leases through its subsidiaries Atlas Air, Polar Air Cargo and Titan Aviation.