Apollo weighs potential US$12 billion sale of Atlas Air

[NEW YORK] Apollo Global Management is exploring a potential sale of its aviation company Atlas Air Worldwide Holdings, according to sources familiar with the matter.

The US investment firm is in the early stages of considering a potential divestment of Atlas Air and may seek to value the business at more than US$12 billion, including debt, some of the sources said, asking not to be identified because the deliberations are private. Other industry players and private equity firms have shown preliminary interest in acquiring closely held Atlas Air, the sources said.

Considerations are ongoing and Apollo could decide to retain the asset for longer, the sources said. A representative for Apollo declined to comment. A spokesperson for Atlas Air did not immediately respond to requests for comment.

The aircraft leasing sector has seen rising consolidation over the years, including a US$7.4 billion sale in September of Air Lease, the aviation finance firm built by industry pioneer Steven Udvar-Hazy, to a group led by Sumitomo. The buyer consortium included SMBC Aviation Capital, Apollo and Brookfield Asset Management.

Atlas Air offers aircraft leasing and charter flights with its fleet of Boeing jets, including 747s, 777s, 767s and 737s, according to its website. It provides its planes to airlines under “dry leasing” arrangements, as well as so-called “wet leasing” where it provides crew, maintenance and insurance along with the aircraft. Atlas Air also runs charter cargo and passenger flights.

An investor group led by Apollo agreed to acquire Atlas Air for about US$5.2 billion, including debt, in 2022. BLOOMBERG