Atlas Air Worldwide Holdings closes loan with Industrial and Commercial Bank of China
16-Aug-2010 Atlas Air Worldwide Holdings, Inc. (AAWW) (Nasdaq: AAWW), a leading global provider of air cargo assets and outsourced aircraft operating solutions, today announced the closing of a loan with Industrial and Commercial Bank of China Limited (ICBC) that establishes a relationship with one of the world's largest commercial banks.
Reflecting the global scale and scope of AAWW's operations and its industry leadership, the ICBC relationship underscores the Company's commitment to delivering innovative, outsourced aviation solutions to customers serving China and the neighboring Asia-Pacific region, which comprise the world's largest and fastest-growing air cargo market.
Proceeds from the loan will be used to back leverage the March 2010 acquisition of a Boeing 757-200SF aircraft by AAWW's subsidiary, Titan Aviation Leasing. Funds from the loan were provided pursuant to a commitment to advance up to approximately 70% of the purchase price of the aircraft. As previously announced, Titan Aviation Leasing has dry leased the aircraft to Shanghai Airlines (now part of China Eastern Airlines) for a five-year term. The ICBC loan is coterminous with the dry lease.
"We are very pleased to initiate a relationship with ICBC," said William J. Flynn, President and Chief Executive Officer of AAWW. "ICBC is a leading bank in China, one of the world's biggest commercial banks, and is expected to play an increasingly larger role in aviation finance in the future.
"Our loan with ICBC confirms our view that the Asia-Pacific region - led by China - will drive global air cargo industry growth over the next decade. Based on our research, we expect that air cargo traffic on intra-Asia routes will grow at over 8% per year, while routes from Asia to Europe and North America will grow at more than 7%. Total world growth, meanwhile, is expected to average about 4.5% annually.
"In addition, we expect strong growth in Asian business and consumer demand over the next 10 years to lead to an improving balance in airfreight trade flows between Asia and other regions. It should also enhance the demand for highly efficient air cargo assets, such as our state-of-the-art Boeing 747-400 freighters and soon-to-be-delivered 747-8Fs, by airlines, express delivery operators, freight forwarders, charter brokers and others serving China, the Asia-Pacific region, and related global markets."
SkyWorks Capital, LLC acted as advisor to AAWW in connection with arranging the loan from ICBC.