World Adds Total of Eight 767 and 757 Aircraft

World Air Holdings Wednesday announced the acquisition of North American Airlines, Inc., a privately held airline based in Jamaica, NY, for $35 million in cash.

North American generated more than $200 million in revenues in 2004 and has been consistently profitable since its inception. The company has no long-term debt and its fleet of eight leased aircraft have an average age of less than seven years.

"The inclusion of North American under the umbrella of World Air Holdings diversifies our revenue mix, strengthens our customer base and builds our reputation and leadership as a premier provider of charter airline services," said Randy Martinez, chief executive officer of World Air Holdings. "North American greatly expands our product mix in the military and commercial charter market, with its three Boeing 767 and five Boeing 757 passenger aircraft, and complements the service provided by World Airways with larger wide-body aircraft. North American provides immediate access to a fleet of mid-size aircraft, enhancing our flexibility and increasing our ability to profitably expand service in commercial markets.

"As we reviewed potential strategic options, it was clear there was no better option for World Air Holdings than the acquisition of North American Airlines," Martinez said. "We've known and teamed with North American for a number of years in our Air Mobility Command (AMC) business, and the company has built an outstanding reputation."

In addition to being the first to provide 767 service to the AMC, North American is the charter operator for Club Med travel out of New York and operated the Bush-Cheney campaign aircraft in 2000.

"The North American aircraft are popular with a variety of customers, including tour operators, which supports our corporate goal of diversifying our revenue sources," Martinez said. "North American's twin-engine jets are approved for extended over-water operations (ETOPS), which World Air Holdings now can include in its international service options."

World Airways and North American will be managed independently under their respective operating certificates. North American will maintain its operational headquarters at John F. Kennedy International Airport in New York, with World Airways and World Air Holdings continuing to be based in Peachtree City.

World's fleet consists of 16 wide-body MD-11 and DC-10 passenger and cargo aircraft, and North American operates three Boeing 767-300ER passenger aircraft and five Boeing 757-200ER passenger aircraft. World Airways will add another MD-11F cargo aircraft to its fleet in May.

FMI: www.worldairways.com, www.northamericanair.com