By Rob Stapleton
Alaska Journal of Commerce

Rural air cargo carrier Arctic Transportation Services has acquired the aircraft and physical assets of Arctic Circle Air Service in Bethel and Dillingham.

ATS and Arctic Circle have for years vied for the same business from similar sources in the Southwest region. The move should make ATS a stronger company, according to its owners.

“We think picking up the assets of Arctic Circle will be beneficial to both companies,” said Wilfred “Boyuck” Ryan, president of ATS. “We've been banging against each other for the same clients and business for years in these markets.”

Arctic Circle Air Service will continue to provide service out of its established hubs in Anchorage and Fairbanks while focusing on future expansion and equipment choices.

“We will hold on to our equipment and personnel in Anchorage and Fairbanks and concentrate on expanding business there,” said Jeff Pereira, director of stations for Arctic Circle Air.

According to Ryan, ATS purchased a terminal facility and hangars, four Cessna 207s, a Skyvan and ground handling equipment.

A management team will interview Arctic Circle employees, but Ryan indicated the ATS will probably downsize from the existing 16 employees.

“We will have to reduce the workforce where there is duplication of services, but we are looking to hire more pilots, mechanics and cargo service agents. Those willing to make the transition to ATS will be given an opportunity before we look at new hires.”

Combining assets should provide customers in the Yukon Kuskokwim and Dillingham areas more reliability and flexibility for their shipping needs, the company said.

The Skyvan will be added to the ATS fleet of CASA-type aircraft to provide ATS with the ability to transport a range of products throughout Western Alaska.

Ryan said that while Arctic Circle Air Service has provided a valuable cargo and passenger service to the residents in the Yukon Kuskokwim and Dillingham areas for more than 25 years, he is confident ATS will be able to provide customers with an equivalent level of service.

Ryan would not reveal the cost of the transaction, or the yearly gross revenue of ATS.

ATS services the rural communities of Western Alaska. It has 11 aircraft flying out of seven hubs, serving 75 villages and employs 65 people.

The company focuses on providing bush cargo and mail delivery in scheduled flight operations. These operations are conducted around the major hub communities of Aniak, Bethel, Emmonak, Kotzebue, Nome, St. Mary's and Unalakleet.