New money for Arrow Cargo
 

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MatlinPatterson Global Opportunities Partners III Acquires Controlling Interest in Arrow Air Holdings Corporation
|Distributed by Press Release

MIAMI and NEW YORK, June 30 /PRNewswire/ -- Arrow Air Holdings Corporation, the parent company of Arrow Air, Inc., and MatlinPatterson Global Advisers today announced that MatlinPatterson Global Opportunities Partners III, through MP Arrow III, LLC, has acquired an 85% interest in Arrow Air Holdings. Financial terms of the transaction were not disclosed.
Arrow, which provides comprehensive cargo logistics services under the name Arrow Cargo, is the largest U.S. registered air cargo carrier based at Miami International Airport. The Company provides scheduled air cargo logistics services to and from, and between the United States, Central and South America, and the Caribbean. Arrow operates nine cargo aircraft and serves more than 3,500 customers worldwide.
James J. Pinto, a continuing Director on the Arrow Air Holdings Board, said, "We are delighted to have the support of MatlinPatterson, a strong financial and operational partner. Our continued interest in the company as minority investors underscores our confidence that Arrow Cargo is well-positioned for further growth and success."
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"Arrow is a strong competitor in the air cargo industry and a highly complementary addition to our portfolio," said Lap Chan, Managing Partner of MatlinPatterson. "We intend to modernize and expand Arrow's existing fleet by introducing B757's in late 2008 and A330's in early 2010 to facilitate the company's continued growth and improve the company's profitability."
About Arrow Cargo
Arrow Cargo is the largest U.S. certificated (Part 121) all cargo air carrier operating out of Miami International Airport. Arrow Cargo currently operates a fleet of seven DC-10 series aircraft and two DC-8 series aircraft. Arrow Cargo expects to grow its fleet of DC-10 aircraft to nine by the end of the year and replace its DC-8 fleet with four B757 freighters. The first B757 is expected to join Arrow Cargo's fleet in the late summer.
About MatlinPatterson
MatlinPatterson is a $9 billion global private equity franchise. Over a 14-year period, the firm and its investment professionals have successfully invested across a broad range of industries in over 25 countries and have led the restructuring of and made substantial investments in more than 65 companies. MatlinPatterson has a strong record of working with management teams to further their strategic plans.
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Awesome. Atleast someone is on the upside at this business and it's good to hear positive news for our beat up profession once in awhile. CONGRATS

The only downside is....they are going to want their return. At WOA we were completely fine, but they came in and under ATA, made a new holding company and made an investment to the tune of 350 Mil US $. Keep in mind that we were fine on our own prior to this, well now....we, WOA, get to start making payments on this new 350 mil investment to the tune of $50,000,000 per year, that's right. 50 million dollars. We essentially bought ourselves with our own money with the interest due to MP.
Good luck to the Arrow folks.
WG

The cool thing about Arrow is they have their own freight forwarding. We (WOA) might see some side action from this during the flower season.

I wonder what will happen to the regime at Arrow once MP see's how "smooth" :rolleyes:that operation is.

Where are the two addittonal DC-10s coming from?

MatlinPatterson SUCK!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Varig Log most likely whom also is owned by MP.

Varig Log History:
In March 2008, there are reports of asset transfers between (LC) Varig Logistica and (JW) Arrow Air as Arrow Air Cargo was also being merged into the MatlinPatterson holding company.

Fleet:
6 Boeing 757F
3 Boeing 727-200F
3 McDonnell Douglas DC-10-30F
2 McDonnell Douglas MD-11F


Sounds like World is getting the MD's and Arrow will get the 757's and the DC's.
VarigLog Ceases Europe Operations

Brazilian cargo airline VarigLog's announced plan to shutdown all European operations for "economic and operational" reasons indicates plainly the difficulty of operating in an area known for high costs and stringent noise and environmental regulations.

In a terse statement to customers this week, the airline said it would soon close its offices in Spain, Italy, and Germany. No other details were provided and the company could not be reached for comment.

At one time, the cargo airline was a wholly-owned subsidiary of the constant money-losing passenger airline Varig. VargiLog was sold for $48.2 million in 2006 to Volo do Brazil, a consortium that included Matlin Patterson and Brazilian investors Marco Antonio Audi, Marco Hapfel and Luiz Gallo.

VarigLog is rated No. 48 in Air Cargo World's Top 50 airlines. The carrier posted 864,000 freight tonne kilometers in 2007, a 29.6 percent drop over the earlier year due to the folding of the passenger carrier Varig.

São Paulo-based VarigLog, which has a fleet of 18 aircraft, operates domestic freight services to several destinations within Brazil, including capital city Brasilia and Campinas.

Robert W. Moorman

Are you Moorman or just quoting him.

The Moorman I know is a very accurate journalist and all round fine fellow.