Oak Hill Capital Partners to Acquire Southern Air

Southern Air to be Combined with Cargo 360 to Create a Leading Global Air
Cargo Company

NEW YORK, July 26 /PRNewswire/ -- Oak Hill Capital Partners, a leading
private equity firm, announced today that it has executed a definitive
agreement to acquire Southern Air Inc., a premier provider of air cargo
services to airlines worldwide. Subsequent to the closing of the
transaction, Southern Air will be combined with Cargo 360, Inc., an
existing Oak Hill Capital portfolio company. Southern Air's founder and
CEO, James K. Neff, and his family will retain a significant minority
interest in the combined company, and Mr. Neff will serve as its CEO. Terms
of the transaction were not disclosed.

The combined business, which will operate under the Southern Air
Holdings, Inc. name, will be one of the largest and fastest growing global
air cargo companies providing aircraft, crew, maintenance and insurance
("ACMI") services to airline customers worldwide. On a combined basis,
Southern Air Holdings will operate a fleet of 13 Boeing 747 "classic"
freighters. In addition, Southern Air Holdings has reached agreement to add
another Boeing 747 "classic" freighter and two Boeing 747-400BCF freighters
to its fleet in 2008, and anticipates operating six new Boeing 777
freighters in the future. Southern Air Holdings will be headquartered in
Norwalk, Connecticut, with flight and maintenance bases located around the
world.

Mr. Neff said, "We are very excited to partner with Oak Hill Capital to
create the leading low cost, global provider of ACMI cargo services. The
combination of Southern Air and Cargo 360 will result in significant cost
savings and synergies which will enhance our service offering to current
and future customers. In addition, Oak Hill Capital's experience in, and
commitment to, the broader aerospace industry will provide us additional
resources to grow our business."

Rowan Taylor, a Partner at Oak Hill Capital Partners, added, "Southern
Air and Cargo 360 each share a common vision for successfully serving their
global airline customers, and the combined business will have the resources
to continue this service and to grow. We look forward to working with Jim
and his outstanding management team."

The transaction is expected to close in September 2007.

Oak Hill Capital Partners was advised by CIBC World Markets Corp. and
Weil, Gotshal & Manges LLP. Southern Air was advised by Bear, Stearns &
Co., Inc. and Kramer Levin Naftalis & Frankel LLP.

About Oak Hill Capital Partners

Oak Hill Capital Partners is a private equity firm with more than $4.6
billion of committed capital from leading entrepreneurs, endowments,
foundations, corporations, pension funds and global financial institutions.
Robert M. Bass is a lead investor. During a period of over 20 years, the
professionals at Oak Hill Capital Partners have invested in more than 60
significant private equity transactions. Oak Hill Capital Partners is one
of several separate Oak Hill partnerships, each of which has a dedicated
and independent management team. These Oak Hill partnerships comprise
more than $25 billion of investment capital across multiple asset classes,
including private equity, special situations, high yield and bank debt,
venture capital, real assets, public equity and hedge funds. In addition to
Cargo 360, the Oak Hill partnerships' current aerospace investments include
(i) Primus International, Inc., a leading global Tier II supplier of
structural components, kits and assemblies, (ii) OH Aircraft Acquisition,
LLC, a newly- formed aircraft leasing company that has executed a
definitive agreement with The Boeing Company to acquire six Boeing 777
freighter aircraft, and (iii) a portfolio of aircraft on lease to airlines
around the world.


SOURCE Oak Hill Capital Partners

 

So, the obvious question is: What does this mean for the pilots?

If they will all be under the Southern banner, I'm thinking it's not too good for the Seattle based C360 bubbas...

 

I think it clearly states that we will be flying under SA colors. As far as the Seattle based crews, no effect since its home basing. But the management toads and local hires that work at the Seattle HQ.....

 

This depends on whose work rules are adopted. If Southerns scheduling policy is followed the 360 guys maybe in for a surprise. I left to go elsewhere after being on the line for only 6 months. Maybe I left prematurely but only time will tell.

 

I doubt you're wrong... I would expect Southern's work rules and mx policies to be followed, at least initially, as the release said the HQ will stay in Conn. That means the same schedulers and scheduling management, especially with Jim Neff staying in charge. But, who knows, I may be wrong, again. I expected them to run the companies separately and play the Atlas/Polar game with them...

Who knows, maybe we both bailed too soon... (I left after 2 years because scheduling got so bad...) Either way, with all my friends still there, I'm hoping for a good outcome.

 

Likewise, I wish them the best, a lot of good guys there that's for sure. It was nice working with you over there, maybe our paths will cross again someday!
Have fun with your new position. For now I'm enjoying my time off.

 

Is there any incentive to stay for the C360 people? Any news on bridging training and operations? It sounds as if there is to be a consolidation under the SA program. Crews may intermix sooner or later. That means common operations and manuals. Who goes to the school house?

What about the SOs vs the PFEs? Are there Korean flight crew? What about them?

There are a lot of questions and somebody is going to feel shorted, no matter what answer is given.

I wish all to have patience and develop a sense of humor. I doubt any of the crew members look upon this with great happiness.

 

when did Cargo 360 start ops? THX

 

Oak Hill investment which owns cargo 360 just bought Southern Air Inc . Combined companies will operate 14 747's classic, 2 747-400, and in the future may have 6 777F

 

Certified and flying in the beginning of May, 2006