Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW), a leading
global provider of outsourced aircraft and aviation operating
services, today provided an update of its fleet strategy, including
an announcement that it has exercised its termination rights in
connection with three early build Boeing 747-8 freighter aircraft.
The three aircraft were part of an order of 12 747-8Fs announced in
September 2006.
Atlas Air now expects to receive three 747-8Fs in 2011, four in
2012, and two in 2013. The first five of these aircraft have been
placed under long-term ACMI (aircraft, crew, maintenance and
insurance) contracts, as previously announced.
William J. Flynn, President and Chief Executive Officer of Atlas
Air Worldwide, said: “As prudent asset managers, terminating the
first three aircraft was the right decision for our fleet, our
customers and our stockholders. We expect the remaining 747-8Fs in
our order to be better-performing aircraft than those we have
terminated.
“The 747-8Fs represent a substantial investment in the growth of
our business and are the cornerstone of our long-term fleet
strategy, reinforcing our position as the most-advanced,
most-efficient and most-reliable provider of outsourced aircraft
and aviation operating services.”
747-8F Order and ACMI Service Contracts
Atlas Air notified Boeing that it has exercised its contractual
termination rights with respect to three early production 747-8
freighters after lengthy delays and performance considerations.
These three early production freighters were previously scheduled
to be Atlas Air’s first deliveries in 2011. Subsequently, Boeing
rescheduled these aircraft to early 2012 and three more recently
built, better-performing 747-8 freighters were moved to the 2011
delivery positions.
Atlas Air expects to receive its first 747-8F from Boeing in
October, followed by two in November and two in the first half of
2012. The first three aircraft will enter ACMI service with British
Airways and the second two with Panalpina.
“We are delighted that our first five new aircraft allow us to
extend our long-standing relationships with two premier customers,”
Mr. Flynn noted. “And we look forward to placing additional 747-8
freighters with other customers.”
Fleet Plan Update
By year-end 2013, Atlas Air’s cargo operations are expected to
include nine 747-8Fs and 24 747-400 freighters. It also expects to
have two passenger 747-400s and three passenger 767-300s providing
charter service to the U.S. military and other customers.
In addition, Atlas Air expects to operate at least 11
customer-owned aircraft in its CMI (crew, maintenance and
insurance) operations. These operations include four 747 Large
Cargo Freighters for Boeing, five 767 freighters for DHL Express,
and two additional 747-400 passenger aircraft for SonAir.
As previously disclosed, the Company’s five remaining
older-generation 747-200 cargo aircraft are expected to be retired
by mid-2012, with modern, more-efficient 747-400F aircraft
providing continuing service. The Company also expects to return
two 747-400BCFs to their lessors at the end of their lease terms in
early 2014 and early 2015, respectively. These two aircraft were
leased as bridge capacity due to the delay in the delivery of the
first 747-8Fs.
Mr. Flynn concluded: “Aggressive management of our fleet, the
addition of new, better-performing and more-efficient aircraft, our
new military-passenger charter operations, the continuing growth of
our asset-light CMI operations, other growth initiatives, and the
scheduled retirement of older aircraft give us confidence in our
ability to meet the expectations of our customers and
investors.”
About Atlas Air Worldwide:
Atlas Air Worldwide (AAWW) is the parent company of Atlas Air,
Inc. (Atlas) and Titan Aviation Leasing (Titan), and is the
majority shareholder of Polar Air Cargo Worldwide, Inc. (Polar).
Through Atlas and Polar, AAWW operates the world’s largest fleet of
Boeing 747 freighter aircraft.
Atlas, Titan and Polar offer a range of outsourced aircraft and
aviation operating services that include ACMI service – in which
customers receive an aircraft, crew, maintenance and insurance on a
long-term basis; CMI service, for customers that provide their own
aircraft; express network and scheduled air cargo service; military
charters; commercial cargo charters; and dry leasing of aircraft
and engines.
AAWW’s press releases, SEC filings and other information may be
accessed through the Company’s home page, www.atlasair.com.
This release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995
that reflect AAWW’s current views with respect to certain current
and future events and financial performance. Such forward-looking
statements are and will be, as the case may be, subject to many
risks, uncertainties and factors relating to the operations and
business environments of AAWW and its subsidiaries (collectively,
the “companies”) that may cause the actual results of the companies
to be materially different from any future results, express or
implied, in such forward-looking statements.
Factors that could cause actual results to differ materially
from these forward-looking statements include, but are not limited
to, the following: the ability of the companies to operate pursuant
to the terms of their financing facilities; the ability of the
companies to obtain and maintain normal terms with vendors and
service providers; the companies’ ability to maintain contracts
that are critical to their operations; the ability of the companies
to fund and execute their business plan; the ability of the
companies to attract, motivate and/or retain key executives and
associates; the ability of the companies to attract and retain
customers; the continued availability of our wide-body aircraft;
demand for cargo services in the markets in which the companies
operate; economic conditions; the effects of any hostilities or act
of war (in the Middle East or elsewhere) or any terrorist attack;
labor costs and relations; financing costs; the cost and
availability of war risk insurance; our ability to maintain
adequate internal controls over financial reporting; aviation fuel
costs; security-related costs; competitive pressures on pricing
(especially from lower-cost competitors); volatility in the
international currency markets; weather conditions; government
legislation and regulation; consumer perceptions of the companies’
products and services; anticipated and future litigation; and other
risks and uncertainties set forth from time to time in AAWW’s
reports to the United States Securities and Exchange
Commission.
For additional information, we refer you to the risk factors set
forth under the heading “Risk Factors” in the Annual Report on Form
10-K filed by AAWW with the Securities and Exchange Commission on
February 14, 2011. Other factors and assumptions not identified
above may also affect the forward-looking statements, and these
other factors and assumptions may also cause actual results to
differ materially from those discussed.
AAWW assumes no obligation to update such statements contained
in this release to reflect actual results, changes in assumptions
or changes in other factors affecting such estimates other than as
required by law.
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