AIR Atlanta is to be split in two in a US$63 million sell-off that leaves Avion Aircraft Trading in control of its fleet of 13 widebody freighters.

The owner of Air Atlanta, Eimskip, had been looking to divest itself of the company since making its intentions to sell clear last May.

The split sees Air Atlanta’s chief executive officer, Hannes Hilmarsson, and finance vice-president Geir Valur Agustsson head a new company that owns the airline’s AOC and will oversee day-to-day fleet operations. Hilmarsson said: “Air Atlanta is a well-known international airline that has gone through substantial and expensive restructuring over the past few years.

“A considerable challenge awaits us in turning the operation around. It is our ambition to develop a robust and profitable airline on the well-established foundations on which the company is based.”

Air Atlanta’s major asset, its 13 widebody aircraft, have been acquired by Avion Aircraft Trading’s parent company, Arctic Partners, and will operate under the name Northern Lights Leasing (NLL). Arctic Partners has acquired a 51 per cent stake in NLL, with Eimskip retaining the other 49 per cent. However, Eimskip has made its intention clear to sell its remaining shareholding in the near future.

Principal owner of Arctic Partners Haftor Hafsteinsson said: “The aircraft trading and leasing market is at a historical peak, and as a result there are plenty of opportunities to profitably lease and sell the aircraft that will not be used in Atlanta projects following the down-sizing of the company.”