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ESTABLISHED AND STARTED OPERATIONS IN 1993. DOMESTIC, REGIONAL & INTERNATIONAL, SCHEDULED & CHARTER, CARGO, JET AIRPLANE SERVICES.
2000 WESTCHESTER AVENUE
PURCHASE, NEW YORK 10577-2543, USA
USA (United States of America) was established in 1776, it covers an area of 9,363,123 sq km, its population is 280 million, its capital city is Washington DC, and its official language is English.
OCTOBER 1995: POLAR AIR CARGO (PAO) OPERATES CARGO SERVICES TO ASIA, AUSTRALIA, EUROPE, NEW ZEALAND & SOUTH AMERICA. EXCLUSIVELY SERVES INTERNATIONAL FREIGHT FORWARDERS AND AGENTS THROUGHOUT THE WORLD, WITH TIME-DEFINITE, COST EFFECTIVE, AIRPORT-T0-AIRPORT, SCHEDULED & CHARTER, ALL-CARGO SERVICE, USING ONLY 747'S.
ADDED CHICAGO (ORD) - NEW YORK (JFK) - MIAMI (MIA) - BUENOS AIRES - SANTIAGO.
DECEMBER 1995: PLANS TO ADD 6 747-200'S TO ITS FLEET OF 12 747-100F'S, PROJECTING 22 - 24 AIRPLANES, WITHIN 2 YEARS.
APRIL 1996: DIRECT, SCHEDULED, ALL-CARGO SERVICE, UK, & EUROPE, USA, ASIA/PACIFIC, & SOUTH AMERICA.
EDWIN WALLACE, CEO.
475 EMPLOYEES (INCLUDING 173 FLIGHT CREW (FC) & 43 MAINTENANCE TECHNICIANS (MT)).
CURRENTLY, HAS 12 747F'S (+2 IN 1996).
JULY 1996: 1 747-100F (JT9D-7A) (1997), EX-AIR HONG KONG (AHK), (GUI) 5 YEAR LEASED.
AUGUST 1996: FLS AEROSPACE (ATD) HEAVY MAINTENANCE CONTRACT FOR 3 747-100F "C" MAINTENANCE CHECKS, AND PYLON STRUT MODIFICATIONS ON 2.
NOVEMBER 1996: PHILIPPINES MARKET = +17.6% PER YEAR. NEW ROUTE TO MANILA, FROM NEW YORK, CHICAGO (ORD), & ANCHORAGE, VIA KHABAROVSK AND TAIPEI. ALSO, SEATTLE, LOS ANGELES (LAX), & HONOLULU (HNL), TO MANILA, INCLUDING AUCKLAND NEW ZEALAND, SYDNEY, MELBOURNE & SINGAPORE.
747-200F (JT9D-7Q) (22237), EX-AIR HONG KONG (AHK), (GUI) LEASED (HAECO) (CAT) DID "C" MAINTENANCE CHECK & PAINTED AIRPLANE). 14TH 747 DELIVERY 747-200F (NEXT IN APRIL 1997, THEN +2/3 747'S EACH YEAR, FOR NEXT 5 YEARS).
MARCH 1997: 1 747-283F (JT9D-70A) (21575), EX-PHILIPPINE AIRLINES (PAL), (GUI) LEASED. 1 747-128F (JT9D-7A) (19751), EX-ATLAS AIR (TLS), ISRAELI AIRCRAFT INDUSTRIES (IAI) LEASED.
APRIL 1997: TO MANCHESTER, ENGLAND. SCHEDULED SERVICE TO OSAKA, KANZAI. SERVICE TO BANGKOK FROM CHICAGO (ORD), & LOS ANGELES (LAX), VIA NEW ZEALAND, & AUSTRALIA (WEST BOUND), AND VIA HONG KONG, TO COLUMBUS OHIO, CHICAGO (ORD), & NEW YORK. NOW 19 COUNTRIES SERVED.
1996 = 1.372 BILLION (FTM) (FREIGHT TRAFFIC) (.977 BILLION).
JULY 1997: 1996 = +$3.38 MILLION (+$8.29 MILLION).
AUGUST 1997: NOW TO 100 CITIES WITH 747F FLEET.
SEPTEMBER 1997: NEW YORK KENNEDY (JFK) TO PRESTWICK, SCOTLAND (747F).
RELOCATES TO EXPANDED FACILITIES AT MIAMI, TO USE AS PRIMARY GATEWAY TO SOUTH AMERICA, & A HUB FOR SHIPMENTS, BETWEEN EUROPE, ASIA, SOUTH PACIFIC, & MIDDLE EAST.
DEPARTMENT OF TRANSPORTATION (DOT) RANKED POLAR AIR CARGO (PAO) 1ST OF ALL NATIONAL CARGO CARRIERS (REPLACING EMERY (EAF), WHO WAS PREVIOUSLY 1ST) AFTER 1ST 6 MONTHS, AFTER MOVING 946 MILLION (FTK)'S FREIGHT TRAFFIC.
747-122F (19757) NAMED "ELISA ABRUZZO."
OCTOBER 1997: 747-132F (19897, "PAUL ZINICA"). 747-249F (22237, "KATHY STYER"). 747-123F (20109 - "PETER BIRD", /70 68 16), EX-AMERICAN AIRLINES (AAL), ARKIA (ARK) LEASED.
NOV 1997: 1 747-123 (133-20326, /71 68 16), EX-AMERICAN AIRLINES (AAL), ARKIA (ARK) LEASED.
DECEMBER 1997: 1 747-249F (21827), EX-SOUTHERN AIR TRANSPORT (STT), 63 MONTH LEASED FROM KINTER HOLDINGS (NOSE & SIDE CARGO DOOR).
JANUARY 1998: TO BEGIN SCHEDULED 747F SERVICE TO SOUTH AFRICA, VIA THE NETHERLANDS, EGYPT, KENYA, & ZIMBABWE.
747-283F (21575 - "GRANT LEDFORD"). 747-122F (19756 - "LOUIS CORONA"), 747-132F (19897 - "ERNEST W BELL JR"), 747-249F (22237 - "SCOTT B WELTY").
MARCH 1998: 1ST USA ALL-CARGO OPERATOR, TO EQUIP ITS FLEET WITH TRAFFIC ALERT & COLLISION AVOIDANCE SYSTEM (TCAS).
APRIL 1998: 475 EMPLOYEES (INCLUDING 173 FLIGHT CREW (FC) & 43 MAINTENANCE TECHNICIANS (MT)).
1 747-200F (JT9D-7Q), EX-SOUTHERN AIR TRANSPORT (STT).
JUNE 1998: NOW RANKED #1 USA ALL-CARGO AIRLINE, AND 3RD LARGEST ALL-CARGO CARRIER IN THE WORLD.
747-122 (19757 RENAMED "MARTIN MOORE"). 747-249F (22237 - RENAMED "BRENT C. OGDEN"). 747-122F (19754 - "MIKE REDMOND").
1997 TOP WORLD OPERATOR COMPARISONS:
FTK (FREIGHT TRAFFIC) (BILLION): 11 NWA 3.3; 12 UAL 3.2; 13 CHI 2.8; 14 EVA 2.7; 15 DAL 2.5; 16 CLX 2.4; 17 AAL 2.4; 18 PAO 1.9; 19 SWS 1.8; 20 NCA 1.8; 21 MTH 1.8; 22 TII 1.6.
JULY 1998: DEPARTMENT OF TRANSPORTATION (DOT) ALLOCATES 16 SLOTS AT NARITA, JAPAN.
AUGUST 1998: ADDS LIMA AS 7TH, SOUTH AMERICAN CITY.
SEPTEMBER 1998: 747-123F (20109 "R DAVID HILL JR") DELIVERY.
OCTOBER 1998: 1997 = -$2.48 MILLION (+$3.38 MILLION).
BEGINS NEW AMSTERDAM - JEDDAH - NAIROBI - HARARE - JOHANNESBURG ROUTE.
530 EMPLOYEES (FULL +1/2 PART TIME).
747-100F (19751) RETURNED TO ISRAELI AIRCRAFT INDUSTRIES (IAI), LEASED TO EVERGREEN INTERNATIONAL (EVR).
DECEMBER 1998: 747-283BF (21575) WET-LEASED TO FEDEX (FED).
JANUARY 1999: LOU VALERIO, CEO (INTERIM) (JANUARY 1999), FOLLOWING RETIREMENTS OF NED WALLACE, CEO, & MARK WEST, PRESIDENT.
MARCH 1999: MAINTENANCE CONTRACT FOR 8 747-100F/-200F'S, TO ISRAELI AIRCRAFT INDUSTRIES (IAI) BEDEK.
DEPARTMENT OF TRANSPORTATION (DOT) RENEWS EXEMPTIONS FOR 2 YEARS, FOR SCHEDULED CARGO SERVICE, FROM ANCHORAGE TO OSLO, MIAMI TO CARACAS & BEYOND TO RIO DE JANEIRO & SAO PAULO.
1998 = 1.01 BILLION (FREIGHT TRAFFIC) (FTM) (1.32B).
APRIL 1999: 747'S BEING USED FOR HUMANITARIAN AIRLIFT FOR REFUGEES IN ALBANIA, AS PART OF CIVIL RESERVE AIR FLEET (CRAF).
475 EMPLOYEES (INCLUDING 173 FLIGHT CREW (FC) & 43 MAINTENANCE TECHNICIANS (MT)).
SITA: LGBKUPO. (http://www.polaraircargo.com).
JULY 1999: ORDER TO PENNY & GILES, KANSAS, FOR ENGINE INSTRUMENT DISPLAY SYSTEM (EIDS), FOR 747-100/-200'S.
AUGUST 1999: CODE SHARE WITH AIR NEW ZEALAND (ANZ) TO THE SOUTH PACIFIC.
SEPTEMBER 1999: 747-124F (19733, N854FT) RETURNED TO LESSOR.
OCTOBER 1999: 2 747-2U3B'S (JT9D-7Q) (22768; 22769), EX-GARUDA INDONESIA (GIA), TRITON AVIATION SERVICES (TIA) 2 YEAR LEASED, CONVERSION TO FREIGHTERS BY BEDEK (IAI), ACCOMMODATE 30 96 X 125 INCH PALLETS ON THE MAIN DECK, ADDING 1 POSITION TO STANDARD CONFIGURATION, FOR 747-100/-200.
NOVEMBER 1999: BOB MARTENS, PRESIDENT, EX-BUSINESS EXPRESS.
DECEMBER 1999: 5 ORDERS (October 2000) 747-400F'S (CF6-80C2), GECAS (GEH) LEASED.
JANUARY 2000: POLAR AIR CARGO (PAO) AND "STAGECOACH," WHO OWN GLASGOW PRESTWICK INTERNATIONAL AIRPORT, PLAN $3 MILLION, 61,000 SQ FT MAINTENANCE FACILITY, TO BE COMPLETED BY MID-2000. (PAO) OPERATIONS 4/WEEK TO PRESTWICK (747F).
FEBRUARY 2000: 2-YEAR HEAVY MAINTENANCE CONTRACT, FOR 9 747-100F/5 747-200F TO SINGAPORE AIRLINES (SIA) (SIAEC).
JUNE 2000: ERIC DULL, CEO (ACTING).
JULY 2000: 1999 = -$8.28 MILLION (-$38.35 MILLION): 1.4B (FTK) FREIGHT TRAFFIC (-4.3%); 444 EMPLOYEES (-14.1%).
SEPTEMBER 2000: BY THE END OF 2000, TO HAVE 325 (FC) PILOTS. 747-400F CREWS INCLUDING 90 (FC): 30 CAPTAINS & 60 FIRST OFFICERS.
1 747-259BC (JT9D-7Q) (372-21730, /79 58 17, N924FT), EX-TOWER (TOW), LEASED 7 YEARS FROM AERO USA.
OCTOBER 2000: 1ST 747-46NF (30808, N450PA "CITY OF LONG BEACH") DELIVERY. 747-132SF (20246) RETIRED.
NOVEMBER 2000: 2 747-46NF'S (30809, N451PA; 30810, N452PA) DELIVERIES. 2 747-2R7F'S (JT9D-70A) (21841, /79 61 16 N925FT; 21650, /79 64 15 N639FE), EX-FEDEX (FED)/BOEING (TBC).
JANUARY 2001: 4TH QUARTER = +$16.94 MILLION (+$5.11 MILLION).
FEBRUARY 2001: 747-259B (21730, N924FT), SUB-LEASED TO (UPS).
APRIL 2001: 498 EMPLOYEES (INCLUDING 190 FLIGHT CREW (FC).
HUB: NEW YORK KENNEDY (JFK).
SCHEDULED ALL-CARGO SERVICES TO 35 DESTINATIONS, IN 23 COUNTRIES, WITH >40 FLIGHTS/WEEK.
1 747-400F WET-LEASED TO STAF/SWISSGLOBAL CARGO, FOR OPERATIONS FROM LUXEMBOURG.
MAY 2001: TO LAY OFF 50 - 60 EMPLOYEES (INCLUDING -24 FLIGHT CREW (FC) FOR COST REDUCTION, LEAVES 438 TOTAL.
1ST QUARTER = -$26.8 MILLION (-37.2%).
JUNE 2001: MIKE SNYDER, EX-FEDEX (FED), COO (INCLUDING FLIGHT OPERATIONS, TERMINAL SERVICES, MAINTENANCE ENGINEERING, PLANNING, SCHEDULING & SAFETY).
JULY 2001: ATLAS AIR INTERNATIONAL (TLS), MAKES AGREEMENT WITH GE CAPITAL AVIATION SERVICES (GECAS) (GEH) TO ACQUIRE POLAR AIR CARGO (PAO), FOR $84M.
747-122F (19856) WITHDRAWN FROM USE (WFU) MOJAVE. 747-124F (19733) RETURNED TO TRITON (TIA).
AUGUST 2001: NEW YORK KENNEDY (JFK) TO GOTHENBURG, SWEDEN.
1 747-400F DELIVERY.
SEPTEMBER 2001: DEPARTMENT OF TRANSPORTATION (DOT) AWARDS POLAR AIR CARGO (PAO), USA - HONG KONG, ALL-CARGO, GAINING ENTRY INTO HONG KONG - SOUTH KOREA MARKET, LEFT DORMANT BY AIR MICRONESIA (MCR). (PAO) WILL OPERATE NEW YORK KENNEDY (JFK) - CHICAGO (ORD) - ANCHORAGE - SEOUL - HONG KONG.
1 747-400F DELIVERY.
OCTOBER 2001: 1 747-46NF DELIVERY.
NOVEMBER 2001: (DOT) AWARDS POLAR AIR CARGO (PAO), 3 ALL-CARGO FREQUENCIES, TO HONG KONG, VIA SOUTH KOREA. ADDS SEOUL, AS A STOP, ON ITS ANCHORAGE - HONG KONG, AND TOKYO - ANCHORAGE ROUTES. HAS 16 WEEKLY SLOTS AT NARITA. TOKYO IS THE WORLD'S, 4TH LARGEST, FREIGHT MARKET.
JIM JENSEN, PRESIDENT & COO, EX-(TWA) & DOUGLAS.
747-124 (19734) BROKEN UP AT MOJAVE. 747-132 (19897) PARTED OUT.
JANUARY 2002: 4TH QUARTER = -$24.94 MILLION: MAINTENANCE COSTS $15.36 MILLION (-18.2%)
APRIL 2002: 498 EMPLOYEES (INCLUDING 190 FLIGHT CREW (FC)).
MAIN BASE: NEW YORK - KENNEDY INTERNATIONAL AIRPORT (JGK).
HUBS: ANCHORAGE INTERNATIONAL AIRPORT (ANC); & AMSTERDAM - SCHIPHOL AIRPORT (AMS).
747-122F (19755, N850FT) WFU AT PRESTWICK. 747-122F (19753, N853FT) RETURNED TO SERVICE.
May 2002: 747-100F (19755) parted out.
June 2002: Is parking all its 747-100F's, as they come due for heavy checks, and replaces them with 747-300F's, leased from parent company, Atlas Air (TLS). 2 747-300F's (23395, N355MC; 24837, N24837), (TLS) wet-leased.
July 2002: 2001 = -$113.05 Million (-$11.07 Million): 1.39 Billion (FTK) freight traffic -16.3%); 498 employees (-34.9%). 6 months = 695.43 Million (FTK) (+39.98%).
Direct all-cargo services from Los Angeles (LAX) to Seoul, and Taipei, with connecting service to Tokyo and Hong Kong (747-400F, 3/week).
August 2002: New York Kennedy (JFK) - Prestwick - Liege (4/week). Chicago - Gothenburg (weekly).
September 2002: Atlas World Holdings (includes (TLS) and Polar (PAO) 1st 6 months = -$40.9 Million (-$50.6 Million).
2 747-122F's (19753; 19754), sold to Jet Midwest, leased to Kalitta (KAC).
October 2002: 747-2D3BF (21251), & 747-47UF (29257, N496MC), Atlas Air (TLS) wet-leased.
November 2002: 747-122F (19756, N851FT) parted out.
December 2002: Los Angeles (LAX) to Honolulu (5/week), mainly carrying mail and perishable goods.
January 2003: Launched service to (Hong Kong) - Melbourne - Manila (2/week) and (Seoul - Sydney) - Jakarta - Penang (2/week). In 2003-03, to extend existing transatlantic services to Europe, the Middle East, and India, via Penang. Applies for 5th freedom, additional Hong Kong rights to transform Penang into its hub in Southeast Asia.
April 2003: 2002 TOP 25 WORLD CARRIERS - (B) - FTK (FREIGHT TRAFFIC)
1 (FED) 13.20; 2 (LUB) 7.16; 3 (UPS) 6.62; 4 (KAL) 6.25; 5 (SIA) 6.08; 6 (AFA) 4.87; 7 (CAT) 4.85; 8 (CHI) 4.60; 9 (JAL) 4.39; 10 (CLX) 4.16; 11 (BAB) 4.12; 12 (KLM) 3.99; 13 (EVA) 3.28; 14 (NWA) 3.24; 15 (AAL) 2.93; 16 (UAL) 2.79; 17 (AAR) 2.75; 18 (NCA) 2.21; 19 (PAO) 1.97; 20 (EAD) 1.96; 21 (MAS) 1.92; 22 (BEJ) 1.88; 23 (TII) 1.824; 24 (DAL) 1.823; 25 (ACN) 1.58.
July 2003: (DOT) selected 6 carriers to operate cargo services between Hong Kong and 3rd country cities in conjunction with USA - Hong Kong services: Fedex (FED), United Parcel Services (UPS), Evergreen International (EVR), Kalitta Air (KAC), Northwest Airlines (NWA), & Polar Air Cargo (PAO).
August 2003: Liege - Seoul - Taipei (3/week).
October 2003: New York - Halifax - Liege (747F, weekly). Hong Kong, Malaysia, & India (3/week).
January 2004: Along with its sister Atlas Air (TLS) and parent Atlas Air Worldwide Holdings, have filed for Chapter 11 bankruptcy. Both carriers continue to operate. The company has arranged for $50 Million in Debtor in Possession (DIP) financing from the CIT Group and Abelco Finance LLC. Has already developed a restructuring plan and expects to spend only a short time in Chapter 11.
February 2004: 747-237BF (21446, N524UP) returned to Triton (TIA).
March 2004: 747-329F (24837, N24837) & 747-341F (23394, N354MC) returned to Atlas Air (TLS).
April 2004: 747-2F6F (21832) Atlas Air (TLS) wet-leased.
May 2004: 665 employees.
2 747-2U3B's (22768; 22769), returned to Triton (TIA). 747-230F (21221), (TLS) wet-leased.
July 2004: Will transfer its European cargo hub from Liege (Belgium) to Amsterdam Schiphol in the 4th Quarter 2004. Polar Air Cargo (PAO) currently operates 3/week flights from Amsterdam and will increase its services to 16 intercontinental scheduled flights/week. Schiphol is developing a semi-permanent warehouse facility to house (PAO)'s transshipment activities. Construction of a permanent warehousing is expected to begin later in 2004.
Atlas Air Worldwide Holdings, parent of Atlas Air (TLS) & Polar Air Cargo (PAO), emerged from Chapter 11 bankruptcy protection as its new joint plan of reorganization became effective.
2003 = 1.63 Billion (FTK) (-17.4%).
September 2004: (DOT) named Polar Air Cargo (PAO) as a new entrant in the USA - China market and will distribute 39 new weekly all-cargo routes among (PAO) and 3 USA airlines: FedEx (FED), Northwest Airlines (NWA), & (UPS). (PAO) will receive initially 9 weekly flights, 6 available now, and +3 in 2005-03. (FED) & (UPS) each would be awarded +12 weekly flights, and (NWA) +6. Of these flights, half would be available now and the other half in 2005-03.
Atlas Air (TLS) & Polar Air (PAO) were awarded $25 Million contract from the US Air Force Air Mobility Command (AMC) to provide fixed air cargo flying in (AMC)'s Fiscal Year (FY) 2005, starting 2004-10. Will also support expansion flying which amounted to $186 Million in revenue for 1st 8 months of 2004.
Miami to Lima via Sao Paulo (747F, weekly).
October 2004: Oslo to Seoul and Taipei (747F, weekly), 112 tons of cargo mostly fish products.
December 2004: Entered into a revolving credit facility with Congress Financial Corp as agent for the lenders and Wanchovia Bank, National Assoc, as lead arranger. The facility provides the borrowers (Atlas Air & Polar Air Cargo) with the revolving loans of up to $60 Million, including up to $10 Million in letter of credit accommodations. The facility has an initial 4 year term after which the parties can agree to enter into 1 year renewal periods.
May 2005: 2004 = +$51 Million (-$101 Million).
June 2005: Polar Air Cargo (PAO) provides scheduled all-cargo services to the Americas, Asia, Australia, Europe, and New Zealand.
(IATA) Code: PO - 403. (ICAO) Code: PAC (Callsign - POLAR).
Parent organization/shareholders: Atlas Air (TLS) (100%).
Main Base: New York Kennedy International airport (JFK).
Hubs: Anchorage International airport (ANC); & Amsterdam Schiphol airport (AMS).
Domestic, Scheduled Destinations: Anchorage; Atlanta; Chicago; Los Angeles; Miami; & New York.
International, Scheduled Destinations: Amsterdam; Glasgow; Gothenburg; Guayaquil; Hong Kong; Jakarta; Santiago; Sao Paulo; Seoul; Shanghai; & Tokyo.
August 2005: Atlas Air World Holdings suspends merger of Atlas Air (TLS) with Polar Air Cargo (PAO), when faced with strike action by the (PAO) pilots (FC). (TLS) has 22 747F's that are wet-leased to other operators and (PAO) has 12 747F's including 6 747-400F's.
September 2005: 747-230SF (21644) returned to Atlas Air (TLS).
October 2005: Atlas Air Worldwide Holdings, parent of Atlas Air (TLS) and Polar Air Cargo (PAO), has begun distributing 40,940 shares of new common stock as it continues to restructure following its emergence last year from Chapter 11. The shares will go to holders of allowed general unsecured claims against (AAWW) and its subsidiaries and are the first to be allocated since an initial pro rata distribution of more than 16 million shares in July. Distribution of the remaining 1,065,950 shares to holders of allowed claims will occur on a quarterly basis beginning in January. As of Sept 30, claims of $608.8 million against (AAWW) have been allowed and claims of $52.4 million disputed.
747-230SF (21644, N508MC), Atlas (TLS) leased.
November 2005: Atlas Air Worldwide Holdings (TLS)/(PAO) President and CEO Jeffrey Erickson said in London yesterday that Atlas (TLS)/(PAO) is looking to go into the passenger wet-lease (ACMI) business using 747-400s. Speaking at the Air Cargo Seminar that opened the Future of Air Transport Conference, Erickson said the company hopes to build on its business relationships with cargo (ACMI) customers, grow its (ACMI) base and add a new revenue stream. The business would be a good fit, he said, because it is counter-cyclical with cargo activities, peaking in the summer while cargo has its big peak in the fourth quarter with a smaller peak in early spring. Atlas (TLS)/(PAO) is on the lookout for used 747-400 passenger airplanes, possibly from airlines shedding their 747 fleets or moving over to A380s.
747-123F (20326) sold to JMSL LLC. 747-2F6B SF (21832, N534MC), Atlas (TLS) leased.
December 2005: Atlas Air (TLS)/(PAO) Worldwide Holdings said that it has identified potential cost savings and revenue enhancement opportunities with the help of a consultant that "if successfully realized, could benefit [it's] operating performance by more than +$100 million over the next several years." While the potential cost savings and revenue enhancements would occur over several years, prospective savings and revenue enhancements that could be realized in 2006 and 2007 "would not be insubstantial," it added. Atlas (TLS)/(PAO) President and CEO Jeffrey Erickson told a conference in London that the company is looking to go into the passenger wet-lease (ACMI) business using 747-400s.
January 2006: Atlas Air Worldwide Holdings, parent of Atlas Air (TLS) and Polar Air Cargo (PAO), announced the upcoming retirement of President and CEO Jeffrey Erickson, who steered the company out of bankruptcy in 2004. Atlas (TLS) made the announcement as it reported that it expects to post pre-tax income "in excess" of +$125 million when it releases its final 2005 results in April. This compares to a +$51 million profit earned in 2004. Atlas (TLS) said 2005 revenues will be about $1.6 billion, a +13.5% rise over the $1.41 billion reported for 2004. Cash and cash equivalents climbed to $305 million in 2005 from $133.9 million the previous year.
"Our strong performance in 2005 benefited from the relatively full utilization of our airplanes and higher unit revenues in all four of our service types," said Erickson, who did not give a definitive date for his departure. He will remain on Atlas (TLS)'s board of directors and be "actively involved" in the search for his successor.
April 2006: Atlas Air (TLS) and Polar Air Cargo (PAO) parent Atlas Air Worldwide (AAWW) Holdings, in its first full fiscal year since exiting bankruptcy protection, reported a 2005 profit of +$73.9 million on revenue of $1.62 billion, a performance that left the company confident as it pursues a listing of its common stock on a national exchange. "We believe that reaching these milestones will greatly broaden our potential investor base and therefore interest in (AAWW), ensuring a more liquid market for our shares," Senior VP and CFO, Michael Barna said.
Atlas (TLS) exited bankruptcy in late July 2004, making full-year comparisons difficult. The company provided separate figures for its pre- and post-Chapter 11 performance in 2004, but on a pro forma basis, it posted a profit of +$51 million in 2004 on revenues of $1.41 billion. Operating expenses in 2005 were $1.42 billion compared to $1.37 billion in 2004. Operating profit more than quadrupled from +$44.3 million to +$193.3 million.
Atlas (TLS) operated 39 747Fs at year end (it now has 41) and flew 157,259 block hours in 2005, an increase of +2.1%. (RTM)s fell -30% to 1.41 billion against a -33.1% decline in capacity to 2.16 billion (ATM)s. Load factor rose +3 points to 65.7% LF. Unit revenues grew +30.3% to 25.8 cents and yield increased +24.4% to 39.3 cents.
In the fourth quarter ended December 31, 2005, (AAWW) earned +$27.5 million, a slight improvement over the +$27.1 million earned in the year-ago period, its first full quarter after exiting bankruptcy. Operating profit dipped -2.3% to +$61 million.
Goals for 2006 include an increased presence for its scheduled service business in China, where it already has boosted weekly frequencies from nine to 12, and fleet renewal, which will start with the phasing out of older airplanes this year.
747-283F (21575, N921FT), sold to Finaval Aviation.
May 2006: Hurt by excess capacity, Atlas Air (TLS) and Polar Air Cargo (PAO) parent Atlas Air Worldwide Holdings (AAWH) posted a first-quarter net loss of -$3.7 million, down from a +$675,000 profit in the year-ago quarter. "Results for the quarter reflect some tough comparables, with a reduction in military charter activity compared with last year and a related excess of 747-200 airplane capacity that could not be fully and sensibly deployed elsewhere," outgoing President and CEO, Jeffrey Erickson said.
To realign capacity with demand, Polar (PAO) will retire or sell four 747-200Fs, a 747-100F and a 747-300F by July 1, reducing its fleet of 11 freighters to five 747-400Fs that will be joined by a sixth moved over from Atlas Air (TLS)'s fleet. "Given shifting market dynamics, we are reducing nonessential capacity in order to sustain and improve our profitability," said Erickson, who will retire June 22 and be replaced by former GeoLogistics CEO, William Flynn.
First-quarter operating revenues fell -4.2% to $332.1 million while expenses were virtually flat at $325 million, producing operating income of +$7.1 million compared to +$20.5 million in the year-ago quarter.
Total airplane block hours, including charters, declined -15.7% to 31,448. Scheduled service traffic dropped -5.8% to 317 million (RTM)s as capacity decreased -5.5% to 500.6 million (ATM)s. Load factor dipped -0.3 point to 63.3% LF. (RATM) grew +12.2% to 25.7 cents and yield increased +12.8% to 40.6 cents.
CFO, Michael Barna said (AAWH) plans to "[optimize] the allocation of available airplanes . . . in line with prevailing business opportunities and market conditions." He added that cost-cutting and revenue-enhancement initiatives will save more than -$100 million over the next 3 - 4 years. The company plans to leverage three additional weekly China frequencies awarded last year "to drive profitability in our scheduled service segment."
Erickson projected "a seasonal pickup in business this year" and said Atlas (TLS)'s cost-saving program means "significantly enhanced long-term growth prospects" for the cargo operator.
Atlas Air Worldwide Holdings, parent of Atlas Air (TLS) and Polar Air Cargo (PAO), received approval from Nasdaq for its common stock to begin trading on the exchange today under the symbol "AAWW." President and CEO, Jeffrey Erickson said trading on Nasdaq was "one of our most important post-reorganization business goals" after emerging from bankruptcy protection in July 2004.
Atlas Air Worldwide Holdings (AAWH) named William Flynn, President and CEO. He will replace retiring Jeffrey Erickson on June 22. Flynn, formerly President and CEO, of GeoLogistics, joins the parent of Atlas Air (TLS) and Polar Air Cargo (PAO) at a time of transition.
Spokesperson Alan Caminiti confirmed that Polar (PAO) will retire four 747-200Fs, a 747-100F and a 747-300F by July 1, reducing its fleet of 11 freighters to five 747-400Fs that be joined by a sixth from Atlas Air's (TLS) fleet. The smaller fleet and retirement of older airplanes requiring three-person crews, means that Polar (PAO) will furlough a to-be-determined number of pilots (FC) later this year, Caminiti said. The furloughs come as (AAWH) moves toward consolidating the pilot workforces of Atlas (TLS) and Polar (PAO) into one unit, a plan long favored by the company that was delayed by last fall's brief strike by Polar (PAO) pilots and its aftermath.
(AAWH), the largest operator of 747Fs in the world with 41, could replace the retired planes with conversions; it has reserved up to 10 747 passenger-to-freighter conversion slots with Israel Aircraft Industries (IAI) in 2007 - 2011, but has not determined whether it will use them. Caminiti also revealed that (AAWH), which now exclusively operates 747Fs, is "open to a lot of airplane types" and may add other types in coming years.
July 2006: The Air Line Pilots Association (ALPA) called the June 30 dismissal of 57 Polar Air Cargo flight engineers "drastic and unprecedented" and "in complete defiance of the parties' collective bargaining agreement." Polar (PAO) retired the last of its 747-100/-200/-300 freighters on July 1, and now operates five 747-400s that require two pilots instead of three. Polar (PAO) parent Atlas Air Worldwide Holdings said in May that it planned to furlough Polar (PAO) pilots once the last of the airplanes requiring three-person crews was retired. But (ALPA) insists the pilots should have been retained and trained as first officers for Polar (PAO) and Atlas (TLS) 747-400s. It said the discharges were "harsh" because the pilots now have the "onus" to explain to prospective employers why they were fired. The union added that it will file formal appeals to the Polar Air Cargo (PAO) Crewmembers System Board of Adjustment seeking "to overturn these."
August 2006: Atlas Air Worldwide Holdings (AAWH), parent of Atlas Air (TLS) and Polar Air Cargo (PAO), earned +$10.7 million in the second quarter, narrowed -33% from +$15.9 million earned in the year-ago period, on a -7.3% decrease in revenues to $366.4 million. President and CEO, William Flynn attributed the lower results to reduced scheduled flying and substantially higher fuel prices in scheduled service. He noted that the retirement in the first half of the year of four Polar (PAO) 747-200Fs - - a 747-100F and a 747-300F - -contributed to a "substantial reduction in our maintenance cost expenditures" and helped to lower overall expenses -4.4% to $335.9 million. The company said it hopes to make an announcement on replacement airplanes "shortly."
Operating income was $30.6 million, down 30% from $43.8 million last year. Flynn said (AAWH) is "moving forward with our re-fleeting strategy" by "disposing" of the retired 747Fs in "secondary, more commoditized markets." He added that Polar is saving more than -$25 million in "annualized operating and overhead costs associated with these aircraft" and that the "next step" is investing in next-generation freighters to replace the retired airplanes. As for the remainder of 2006, he predicted a solid second-half performance that "will benefit from the seasonal pickup in all of our commercial lines of business that traditionally leads to a pre-holiday peak season beginning in September and lasting through mid-December."
Atlas Air Worldwide Holdings (AAWH) said it will pay off approximately $141 million of principal under two airplane financing facilities using cash from existing balances and will terminate an existing revolving credit facility with no borrowings outstanding. President and CEO, William Flynn said Atlas (TLS) will take advantage of its cash position, which totaled $309 million after the first quarter, to pay down or terminate facilities "that inhibit our strategic and operating flexibility." The company said it would make the payments, removing the financing liens on 16 747s, among other assets. (AAWW) said it will incur a one-time expense of about $13 million in the third quarter related to the write-off of the remaining, un-amortized discount associated with the debt.
Atlas Air Worldwide Holdings, parent of Atlas Air (TLS) and Polar Air Cargo (PAO), will order up to 12 747-8Fs.
September 2006: Polar Air Cargo (PAO) received USA Department of Transport (DOT) clearance to add 4 weekly flights from the USA to China. The airline will increase the number of weekly flights from 12 to 16 on March 25th. Currently, Polar (PAO) operates 12 flights a week into Shanghai, it will increase that service as well as begin new flights into Beijing all using 747Fs.
Atlas Air Worldwide Holdings, parent of Atlas Air (TLS) and Polar Air Cargo (PAO), promoted General Counsel and Senior VP, John Dietrich to Executive VP and COO, giving him oversight over all aspects of operations. Dietrich has been with Atlas (TLS) since 1999 and previously worked as an attorney for United Airlines (UAL)for 13 years.
Atlas Air Worldwide Holdings, parent of Atlas Air (TLS) and Polar Air Cargo (PAO), placed a firm order with Boeing (TBC)for 12 (GEnx)-powered 747-8F freighters valued at $3.4 billion, with deliveries slated for 2010 - 2011. Atlas (TLS) operates the world's largest fleet of 747Fs with 20 747-400Fs and 15 747-200Fs and had been considering replacements for four 747-200Fs, a 747-100F and a 747-300F retired from Polar (PAO)'s fleet earlier this year. Boeing (TBC) and Atlas (TLS) had appeared close to a 747-8F deal for some time, and the cargo operator will be the plane's North American launch customer.
Boeing (TBC) said it has sold 30 747-8Fs, including the Atlas (TLS)order. That total does not include a yet-to-be-finalized order from Emirates (EAD) announced at the Farnborough Air Show.
October 2006: Atlas Air Worldwide Holdings (TLS)/(PAO) named Adam Kokas, VP General Counsel & Secretary effective October 9.
Atlas Air Worldwide Holdings (AAWH) has reached agreement to sell a 49% equity interest and a 25% voting interest in its (PAO) Polar Air Cargo subsidiary to (DHL) for $150 million cash, the companies announced.
(AAWH) said the deal includes a 20-year blocked-space arrangement with potential revenues of $3.5 billion that "will ensure (DHL) access to airplane capacity in key global markets, while providing the (AAWH) companies with a valuable, long-term customer."
(DHL), which said it was especially interested in Polar (PAO)'s Asian routes, will have access to its six 747-400Fs, as well as available wet-lease (ACMI) airplanes from Atlas Air (TLS). Because (DHL) is a non-USA owned company, it cannot acquire more than a 25% interest in Polar (PAO) under USA law and the deal likely will be subject to review by the USA Department of Transportation.
(AAWH) announced a second-quarter profit of $10.7 million, down -33% from the year-ago quarter. (DHL) will pay $75 million upon the transaction's closing and the remaining $75 million in installments scheduled for January 15 and November 17, 2008.
"Our strategy has been to maximize the value and potential of our scheduled-service business, and this transaction accomplishes that goal," (AAWH) President and CEO, William Flynn said, adding that the deal "provides our company with a significant increase in our cash liquidity and a very attractive long-term revenue stream."
(DHL) Express CEO, John Mullen said the transpacific route "is one of the most rapidly growing and competitive trade lanes globally, and adding capacity through an even stronger presence in the USA is a crucial factor in supporting our dynamic Asian business."
Polar (PAO) will continue to operate independently and there will be no integration with (DHL) or its subsidiaries, the German company said.
747-2F6B (21832, N534MC), & 747-230BF (21221, N509MC), returned to Atlas (TLS) and sold to Southern Air (SOF). 747-249F (22237, 9G-MKU), leased to MK Airlines (MKA).
November 2006: Atlas Air Worldwide Holdings, parent of Atlas Air (TLS) and Polar Air Cargo (PAO), reported third-quarter net income of +$7.1 million, significantly narrowed from a +$29.9 million profit in the year-ago quarter.
The company called the three months ended September 30, a "transition quarter," and said fourth-quarter pre-tax income will exceed +$60 million, up from +$45 million in last year's final quarter. It blamed the third-quarter drop on lower military charter "heavy-lift" operations, saying such activity was "unusually high" last year and was back to more normal levels this year. Higher fuel costs also affected earnings negatively.
Operating revenues decreased -10.8% to $361.1 million as expenses lowered -2.6% to $328.2 million, producing operating income of +$32.9 million, narrowed -51.6% from +$68 million in the year-ago quarter. Scheduled service traffic rose +11.8% to 384.1 million (RTM)s on a +17.6% lift in scheduled capacity to 610.3 million (ATM)s, producing a load factor of 62.9% LF, down -3.3 points.
Noting the recent partial sale of Polar (PAO) to DHL, President & CEO, William Flynn predicted pre-tax earnings for full-year 2007 will exceed +$110 million. "We have strengthened our scheduled-service business through network optimization and have leveraged Polar Air Cargo (PAO)'s strategic route structure, optimal assets and high service reliability," he said.
Polar (PAO) will launch twice-weekly flights to Beijing Capital International airport on November 11 using a 747-400F.
December 2006: Atlas Air (TLS) Worldwide Holdings (AAWH) and (DHL) announced the finalization of (DHL)'s acquisition of a 49% stake in (AAWH) subsidiary Polar Air Cargo (PAO) and a 20-year blocked-space agreement announced in October. The stock purchase agreement was executed November 28.
March 2007: Boeing (TBC) said it reached agreement with express cargo operator DHL on an order for six 767-300ER freighters valued at $894 million. It chose GE (CF6-80C2B7F)s valued at more than $120 million to power the airplanes. DHL Express, CEO, John Mullen said the airplanes will be delivered beginning in 2009 and likely will be dedicated to USA routes. A DHL spokesperson said it is undecided which of the company's affiliated contract carriers will operate the freighters. Astar Air Cargo (DHL) and (ABX) Air are its largest USA subservice carriers and it is the process of finalizing a deal to acquire a 49% equity interest and a 25% voting interest in Polar Air Cargo (PAO).
April 2007: Polar Air Cargo (PAO) has 50 pilots (FC) on furlough status.
Atlas Air Worldwide Holdings (AAWH), parent of Atlas Air (TLS) and Polar Air Cargo (PAO), reached a settlement with the USA Securities and Exchange Commission (SEC) regarding accusations of inaccurate financial reporting from 2000 to 2002, agreeing to make no future misleading financial statements, while paying no penalty for alleged transgressions that took place under previous management. The (SEC) said (AAWW) failed to "report accurately its financial results, maintain requisite accounting records and implement adequate internal accounting controls" in fiscal years 2000, 2001 and the first half of Fiscal Year (FY) 2002. In a statement issued recently, Atlas (TLS) pointed out that "none of the present board of directors or members of senior management was a focus of the investigation" and said it had reached a settlement with the (SEC) "without admitting or denying the findings" by agreeing to "cease and desist from committing or causing any violations and any future violations of federal securities laws and regulations." The (SEC) said in an order issued recently that (AAWW) had undertaken "remedial acts" to improve its financial reporting and cooperated with the investigation, leading the agency to end its inquiry. (AAWW) President & CEO, William Flynn said, "Going forward we are committed to the highest level of integrity in our financial reporting."
The company named Michael Steen, a veteran of Exel (SBE) and (KLM) Cargo, as Senior VP & Chief Marketing Officer (CMO). It also promoted Jason Grant to Senior VP, Network Planning & Business Development. A member of (AAWW)'s executive team since 2002, Grant last year served as VP Continuous Improvement.
May 2007: Atlas Air (TLS) and Polar Air Cargo (PAO) parent Atlas Air Worldwide Holdings (AAWH) reported first-quarter net income of +$6.2 million, reversed from a net loss of -$3.7 million in the year-ago quarter, on a +6.1% rise in revenue to $353.6 million, the highest total it has ever generated in a first quarter. President & CEO, William Flynn called the results "excellent," adding: "Our active asset management and continuous improvement (CI) initiatives are yielding measurable gains in our margins and operating efficiency, and enhancing our earnings." The company said its (CI) program contributed more than >$12 million in cost savings during the quarter, including gains achieved through outsourcing, reduced fuel consumption and improved parts management. "With this momentum, we maximized returns on our assets and achieved robust results during a traditionally slow period of the year in air cargo demand, as well as a quarter with some sluggishness in key trade lanes," he said.
Expenses increased +3.4% to $336.1 million and operating income totaled $17.5 million, more than double the $7.1 million achieved in the year-ago period. Scheduled service traffic grew +5.7% to 335.1 million (RTM)s on a +4.5% lift in capacity to 523.1 million (ATM)s, producing a load factor of 64.1% LF, up +0.8 point. Scheduled service yield decreased -7.4% to 37.6 cents as (RATM) fell -6.3% to 24.1 cents. (AAWW) attributed the drop to "the impact of an increase in competitive capacity serving the transpacific market and moderation of demand for shipments from China, Hong Kong, Korea and Japan." Scheduled service and commercial charter fuel gallons consumed lowered -1.8% to 32.8 million, as the average cost per gallon dropped -6.3% to $1.92. (AAWW)'s average fleet size during the quarter was 32.7 airplanes, down -16.2% from the year-ago quarter, while average utilization of operating airplanes increased +18.7% to 10.7 block hours daily.
June 2007: Atlas Air Worldwide Holdings, parent of Atlas Air (TLS) and Polar Air Cargo (PAO), said it has entered into a joint venture agreement to build a new cargo warehouse at Seoul Incheon. The 12,000-sq-m Atlas Air (TLS) Cargo Terminal, slated to open early next year, will be operated by (AACT) Co, a Joint Venture (JV) comprising Atlas Air (TLS) and Sharp, a South Korean provider of maintenance, ground and related airline support services. It will be the first facility at Incheon to be at least partly owned by a foreign airline. Atlas Air (TLS) has a 30% stake in (AACT), Sharp holds 29% and the remainder is held by several individual South Korean investors.
(DHL) said it officially completed the previously announced transaction to form a strategic partnership with Atlas Air Worldwide Holdings (TLS)/(PAO) subsidiary, Polar Air Cargo (PAO). (DHL) is investing $150 million for a 49% stake and 25% of voting rights in Polar (PAO).
August 2007: Atlas Air Worldwide Holdings, parent of Atlas Air (TLS) and Polar Air Cargo (PAO), posted second-quarter net income of +$43.2 million, more than four times the +$10.7 million profit, earned in the year-ago quarter. It credited a -16% fleet reduction and "active asset management" for the improvement, and pointed to a -$27.7 million lowering in income tax expense, owing to a tax benefit related to (DHL)'s purchase of a 49% equity interest, and 25% voting stake in Polar (PAO), a transaction that closed in the quarter. "Our future is bright," President & CEO, William Flynn said. "We expect strong growth in demand."
Second-quarter revenue grew +1.1% to $370.4 million, while expenses rose +1% to $339.2 million, producing operating income of +$31.2 million, up +2% over +$30.6 million in the year-ago quarter. Scheduled service traffic dropped -0.2% to 376.3 million (RTM)s, on a -0.7% dip in capacity to 593.8 million (ATM)s, producing a load factor of 63.4% LF, down -0.3 point. Yield declined -5.4% to 38.3 cents, as (RATM) fell -4.8% to 24.3 cents.
September 2007: Atlas Air Worldwide Holdings, parent of Atlas Air (TLS) and Polar Air Cargo (PAO), named Jason Grant, Senior VP & CFO, succeeding Michael Barna, who resigned from the post he has held since 2005 "to pursue other interests." Grant, 35, has been with the company since 2002 and most recently served as Senior VP Network Planning & Business Development.
November 2007: First 6 months = 896.33 million (FTK)s freight traffic (-25.76%).
Atlas Air Worldwide Holdings, parent of Atlas Air (TLS) and Polar Air Cargo (PAO), posted third-quarter net income of +$32.4 million, four-and-a-half times more than a net profit of +$7.1 million in the year-ago quarter. President & CEO, William Flynn said the positive earnings resulted from its ongoing effort to "optimize" its fleet of 32 747-200/-400F freighters and cut costs. He noted that airplane utilization was up +4.1% to more than >11.4 hours daily. Cost-cutting and efficiency initiatives provided -$15 million in savings for the quarter, he added. Third-quarter revenue increased +9.6% to $395.9 million as expenses grew +9.9% to $360.6 million, producing operating income of +$35.4 million, up +7.6% from $32.9 million in the year-ago quarter. Scheduled service traffic rose +14.4% to 439.2 million (RTM)s on a +11.4% lift in capacity to 670 million (ATM)s, producing a load factor of 64.6% LF, up +1.7 points. Yield dropped -1.2% to 40.8 cents as (RATM) increased +1.5% to 26.4 cents. "We are looking ahead to a strong fourth quarter and full-year 2007," Flynn said, projecting that annual pre-tax earnings will exceed +$130 million. Pre-tax earnings for full-year 2006 were $+93.8 million.
December 2007: Polar Air Cargo (PAO) is accepting Flight Crew (FC) resumes. Applicants can email their resumes to email@example.com.
January 2008: 2007 Performance Statistics: 1.85 billion (FTK)s (-19.24%) freight traffic. SEE ATTACHED - - "PAO-2007-STATS."
February 2008: Atlas Air Worldwide Holdings (AAWH), parent of Atlas Air (TLS) and Polar Air Cargo (PAO), more than doubled its net income in 2007 to +$132.4 million from the +$59.8 million earned in the previous year. Full-year revenue increased +5.4% to $1.56 billion, while expenses rose +6.8% to $1.41 billion, producing operating income of +$154.8 million, up +1.6% over +$152.3 million in 2006. Total block hours lifted +0.2% to 133.5 million, and scheduled service traffic escalated +8.9% to 1.61 billion (RTM)s on a +7.3% rise in capacity to 2.49 billion (ATM)s. (RATM) grew +0.4% to 26.4 cents, but yield decreased -1.2% to 40.9 cents.
The company said that it has reached agreement to expand its (ACMI) wet-lease relationship with (DHL) Express (DHK), which last year purchased a 49% equity interest and a 25% voting interest in Polar (PAO) and also gained access to Atlas (TLS) freighters on an (ACMI) basis. President & CEO, William Flynn said Atlas (TLS) has agreed to place two 747-400Fs into (ACMI) wet-lease service on behalf of (DHL) on a three-year term, starting March 29. Six Polar (PAO) 747-400Fs already are scheduled to enter into express network (DHL) service in late October.
(AAWH) ended 2007 with 32 747Fs and said it has made pre-delivery deposit payments on five 747-8Fs for delivery in 2010. It said it plans to take delivery of an additional seven 747-8Fs by the end of 2011, though it has not yet announced firm financing on those airplanes. The company said that this year, it will acquire a 747-400F from an undisclosed operator, and will transition one of Atlas (TLS)'s 747-400Fs from another contract to (DHL) services. It will take delivery of a 747-400BCF in the fourth quarter, to be used for non-(DHL) business. Flynn commented that Polar (PAO)'s "transformation" into a (DHL) network carrier will "substantially de-risk our business," enabling it to transport "predictable loads" leading to "significant expansion in margins and earnings." Looking ahead, he said that despite "current economic uncertainty, we expect to increase pre-tax earnings in 2008 and to grow them dramatically in 2009." He projected that pre-tax income, which was +$132.7 million in 2007, will rise to +$165 million to +$175 million in 2009.
May 2008: Atlas Air (TLS) and Polar Air Cargo (PAO) parent Atlas Air Worldwide Holdings reported a first-quarter net loss of -$5.3 million, reversed from a profit of +$6.2 million in the year-ago period, but insisted the result reflects high fuel costs from which it largely will be insulated when Polar (PAO)'s blocked-space agreement with (DHL ) begins later this year. "Our business fundamentals are solid and our performance is on track . . . apart from the impact of fuel prices," President & CEO, William Flynn said. "Record commercial fuel prices, up nearly +50% over last year, had a substantial impact on our [Polar (PAO)] scheduled services results during the first quarter." But he noted that "our direct exposure to fuel costs will be largely eliminated in late October when [Polar (PAO)] commences flying under its long-term blocked space agreement with (DHL) Express. "First-quarter revenue increased +5% to $373 million, while expenses lifted +11.2% to $375.6 million, producing an operating loss of -$2.6 million, reversed from a +$17.5 million operating profit in the year-ago period.
June 2008: The International Brotherhood of Teamsters filed a petition with the USA National Mediation Board seeking a vote to represent Atlas Air (TLS) and Polar Air Cargo (PAO) flight crew (FC) members.
July 2008: Atlas Air Worldwide Holdings (TLS)/(PAO) ordered (GE)'s Tech (CF6) upgrade kits for the (CF6-80C2)s that power its 747-400F fleet. Deliveries will begin this month.
August 2008: Atlas Air Worldwide Holdings, parent of Atlas Air (TLS) and Polar Air Cargo (PAO), reported second-quarter net income of +$1.5 million, down -96.5% from +$43.2 million in the year-ago period. President & CEO, William Flynn said that "aside from the impact of fuel prices . . . our performance remains on track." Fuel expenses leaped +69.5% to $207 million. Flynn added that fuel costs "will effectively be eliminated" when Polar (PAO) becomes a DHL Express carrier in October, allowing it to experience "de-risked earnings growth . . . Our future is bright." Second-quarter revenue rose +17.8% to $438.8 million, while expenses increased +24.5% to $425.2 million, producing operating income of +$13.6 million, down -56.5% from +$31.2 million last year. Scheduled service traffic grew +21.8% to 458.4 million (RTM)s on a +20.8% lift in capacity to 717.4 million (ATM)s, producing a load factor of 63.9% LF, down -0.5 point.
September 2008: Polar Air Cargo (PAO) is accepting Flight Crew (FC) resumes. Applicants can email their resumes to firstname.lastname@example.org or fax to +1 (914) 701-8444.
October 2008: Atlas Air Worldwide Holdings, parent of Atlas Air (TLS) and Polar Air Cargo (PAO), said last week that full-year 2008 pre-tax operating profit will "exceed $65 million," a downgrade from previous guidance of "approximately $85 million." President & CEO, William Flynn cited "lower utilization of our 747-200 airplanes and weaker yields [owing to a weak economy] having a negative impact."
DHL and Polar Air Cargo (PAO) launched their transpacific partnership with a 747-400F flight from Hong Kong to the express operator's USA air hub in Wilmington, Ohio. Polar (PAO), a subsidiary of Atlas Air Worldwide Holdings, now will serve as a DHL carrier by operating six 747-400Fs between the USA and Asian destinations. USA flights will depart from Los Angeles, Wilmington and New York (JFK) and fly via Anchorage to Hong Kong, Shanghai, Seoul, and Tokyo. In addition, weekend flights will operate to Honolulu, Sydney, Sharjah, and Leipzig.
DHL Express CEO, John Mullen said, "The partnership with Polar Air Cargo (PAO) enables DHL to significantly improve its time-definite product offering . . . on one of the world's most important trade lanes. . . Volume on DHL's transpacific routes has been steadily increasing in recent years and despite a slowdown in 2008, overall transpacific air cargo volume is expected to show double-digit growth in the mid-term." DHL last year purchased a 49% equity interest and a 25% voting interest in Polar (PAO) and also gained access to Atlas Air (TLS) freighters on a wet-lease (ACMI) basis.
November 2008: Atlas Air Worldwide Holdings, parent of Atlas Air (TLS) and Polar Air Cargo (PAO), posted third-quarter net income of +$5.2 million, down -84% from +$32.4 million in the year ago period. It blamed the drop on fuel costs and "soft demand." President & CEO, William Flynn noted that Polar (PAO) becoming a DHL contract carrier last month will lead to "significant earnings improvement" in 2009 by "de-risking our business model."
Third-quarter revenue rose +15.6% to +$460.7 million, while expenses jumped +21.2% to $440.4 million, producing operating income of +$20.2 million, down -42.9% from +$35.4 million last year. Scheduled services traffic increased +1.3% to 445 million (RTM)s on a +4.5% lift in capacity to 710.3 million (ATM)s, pushing load factor down -2 points to 62.6% LF.
Looking ahead, Flynn projected operating income of +$55 to -$60 million for full-year 2008 and a doubling to +$130 million for full-year 2009, owing to benefits from the DHL contract.
1st 6 months = 1.03 billion (FTK)s freight traffic (+14.95%).
SEE ATTACHED - - "PAO-2007-TOP-WLD-CARGO."
December 2008: Atlas Air (TLS) and Polar Air Cargo (PAO) flight crew (FC) voted to join the International Brotherhood of Teamsters (IBT), the union announced. They formerly were represented by the Air Line Pilots Association.
February 2009: Atlas Air Worldwide Holdings (AAWH), parent of Atlas Air (TLS) and Polar Air Cargo (PAO), reported 2008 net income of +$63.7 million, down -51.9% from a +$132.4 million profit in 2007, citing "a challenging year for global trade and airfreight," high first-half fuel prices and the "global recession" in the second half of the year. The results were helped by a deferred pre-tax gain of $153.6 million related to DHL purchasing a 49% equity interest in (PAO), which started operating as a DHL Express carrier in October.
President & CEO, William Flynn said (PAO) becoming a DHL carrier and (AAWH) retiring seven of its 14 747-200s "de-risk" the company's business and position it to "substantially improve earnings in 2009 and to report solid first-quarter results in a difficult market."
Full-year 2008 revenue rose +1.9% to $1.61 billion, while expenses jumped +14.1% to $1.62 billion, producing an operating loss of -$8.5 million, reversed from an operating profit of +$154.8 million in 2007. Scheduled service traffic dropped -14.6% to 1.37 billion (RTM)s on a -12.6% decline in capacity to 2.18 billion (ATM)s, producing a load factor of 63% LF, down -1.5 points. Yield improved +14.9% to 47 cents while (RATM) rose +12.1% to 29.6 cents.
(AAWW) said it will retire seven of its 14 747-200s and report a largely non-cash pre-tax special charge of approximately $85 to $95 million associated with retirements. "The current pronounced downturn in global airfreight demand has caused us to accelerate our plans to retire a portion of our older 747-200 assets," President & CEO, William Flynn said.
May 2009: Atlas Air Worldwide Holdings (AAWH), parent of Atlas Air (TLS) and Polar Air Cargo (PAO), posted first-quarter net income of +$23.4 million, reversed from a -$5.3 million loss in the year-ago period, as it benefited from the first full quarter of (PAO) 's operating as a DHL Express carrier. The (PAI) (ACMI) contract pushes much of (AAWH)'s fuel and maintenance expense to DHL. (AAWH) also retired seven 747-200F freighters last year (half of its 747-200F fleet), assets that previously were a big expense burden. All told, expenses fell -47%, enabling it earn a healthy profit despite generating less revenue.
President & CEO, William Flynn said the DHL deal "has transformed expected margins on 747-400F airplane assets that had been deployed in our former scheduled service segment, where [AAWH] was responsible for fuel and yield risk . . . We are positioned to substantially improve earnings in 2009 with a much smaller airplane fleet." First-quarter revenue dropped -34.5% to $244.5 million but was offset by the -47% plunge in expenses to $200.8 million, producing operating income of +$43.7 million, reversed from an operating loss of -$6 million in the year-ago period. Total block hours flown declined -21.9% to 22,908 but revenue per block hour on (ACMI) services lifted +15.7% to $6,905.
August 2009: Atlas Air Worldwide Holdings (AAWH), parent of Atlas Air (TLS) and Polar Air Cargo (PAO), reported second-quarter net income of +$11.3 million, a more-than-sevenfold increase over a +$1.5 million profit in the year-ago period, as it continued to benefit from (PAO) becoming a DHL Express carrier and its cost-cutting initiatives.
President and CEO, William Flynn noted to analysts that the strong result was achieved despite "a difficult demand environment" in which worldwide air cargo traffic dropped by around -18%. He said the company likely will report positive results for the full year owing to its "very resilient business model" that includes (PAO) operating as a DHL Express airline, which pushes fuel expenses and other operational costs from (AAWH) to the delivery giant, and the company operating a smaller fleet (28 747F freighters compared to 42 as recently as 2007) that it believes allows it to better match capacity to demand.
He also credited (AAWH)'s "continuous improvement" program that resulted in slashing $115 million in annual costs as of the end of last year. Executive VP & COO, John Dietrich recently said "A significant component [of being profitable despite the economic downturn] is how we're managing our business. We have looked at every aspect of our business to find ways of operating more efficiently and more cost-effectively."
Second-quarter revenue fell -45.3% to $240 million, while expenses lowered -49.6% to $214.5 million, producing operating income of +$25.5 million, nearly double +$13.3 million last year. Total block hours flown decreased -16.1% year-over-year to 26,308 as, largely owing to the DHL arrangement, (ACMI) block hours lifted +46.8% to 18,484 while scheduled service block hours were eliminated. Commercial charter block hours more than doubled to 2,683.
Flynn said (AAWH) will have "better visibility" on 2010 demand later this year, explaining, "There are still a lot of moving pieces in the market." But he noted that "global airfreight traffic in the past few months is showing some signs of incremental improvement." He cautioned, however, that there "is still an imbalance between traffic and capacity that has put pressure on airfreight yields." He reiterated that (AAWH) is in "live talks" with Boeing (TBC) regarding a new delivery schedule for 747-8F freighters, for which it has firm orders for 12. It originally was supposed to receive six of the type in both 2010 and 2011.
October 2009: Atlas Air Worldwide Holdings (AAWH) reported third-quarter net income of +$14.7 million, a nearly threefold increase over +$5.2 million earned in the year-ago period and its third quarter of strong earnings growth this year. President & CEO, William Flynn credited its 2009 earnings growth despite a weak air cargo market to its decision to retire 14 less efficient 747-200F freighters in 2007 and 2008 and turning former scheduled services subsidiary Polar Air Cargo (PAO) into a DHL Express carrier in October 2008. Looking forward, he cited "ongoing improvement in both supply and demand in global airfreight since earlier this year . . . We expect to see improving trends continuing through the fourth quarter and expect our fourth-quarter net earnings to exceed +$18 million on that basis."
He added that talks with Boeing (TBC) continue regarding a revised delivery schedule for the 12 747-8F freighters (AAWH) has on order. It originally was supposed to receive six of the type in both 2010 and 2011. He said (AAWH) and (TBC) have agreed to reschedule three deliveries to 2012 and 2013 but there is no agreement yet on the other nine.
With its fleet downsized (currently 28 airplanes) and the DHL deal in full effect, it generates less revenue compared to last year, but its costs are much lower. Third-quarter revenue fell -44.5% to $255.5 million, while expenses lowered -48.5% to $226.9 million, producing operating income of +$28.6 million, up +41.6% from +$20.2 million last year.
The 747F freighter specialist also announced that it plans to offer 5.25 million shares of common stock in an underwritten initial public offering (IPO) and that it has extended for an undisclosed period its wet-lease (ACMI) contract with freight forwarder Panalpina, for which it has provided airlift for 15 years.
(AAWH), the 747 wet-lease freighter specialist, announced that it has won a contract to operate "outsourced premium-passenger private charter service" between Houston Intercontinental and Luanda using two customized executive-class, 747-400s provided by Angola's SonAir (SON). The "Houston Express" charter service will ferry members of the USA-Africa Energy Association between the USA's primary oil center and West Africa on thrice-weekly flights. The service is not open to the public.
(AAWH) subsidiary Atlas Air (TLS) will receive undisclosed, contractually determined revenue for operating the airplanes, with SonAir (SON) assuming responsibility for passenger revenue and certain direct costs, including fuel, (AAWH) said. President & CEO, William Flynn said outsourced charter passenger service is the "next and important step for our company." (SON) is a subsidiary of the Sonangol Group, the Angola-based multinational energy company. (USAEA) members are USA energy companies that explore and develop West African petroleum resources.
(PAO) is not accepting Flight Crew (FC) applications. (PAO) has no pilots (FC) on furlough.
December 2009: The USA Air Transport Association (ATA) announced that 15 airlines have signed Memos of Understanding (MOU)s with either AltAir Fuels, Rentech or both expressing nonbinding commitment to support future biofuel supply. Air Canada (ACN), American Airlines (AAL), Atlas Air (TLS), Delta Air Lines (DAL)/(NWA), FedEx Express (FED), JetBlue Airways (JBL), Lufthansa (DLH), Mexicana (CMA), Polar Air Cargo (PAO), United Airlines (UAL), (UPS) Airlines, and US Airways (AMW)/(USA) signed with both providers. Alaska Airlines (ASA) and Hawaiian Airlines (HWI) went with AltAir only and AirTran Airways (CQT) signed with Rentech. The (ATA) said discussions with additional fuel producers "about other projects" have started. "This agreement is a significant step forward, establishing a framework for a large group of diverse carriers to negotiate a definitive fuel purchase agreement," Rentech President & CEO, D Hunt Ramsbottom said.
AltAir is working on producing some 75 million gallons of jet and diesel fuel derived from camelina oils or comparable feedstock per year at a new plant in Anacortes, Washington, USA. Rentech plans to produce around 250 million gallons per year of synthetic jet fuel derived principally from coal or petroleum coke near Natchez, Mississipi, USA with the resultant carbon dioxide sequestered and the carbon footprint potentially further reduced by integrating biomass as a feedstock. Last summer, eight airlines operating at Los Angeles International (LAX) signed a deal with Rentech for the supply of a renewable synthetic diesel fuel for use in ground service equipment (GSE).
February 2010: Atlas Air (TLS) and Polar Air Cargo (PAO) parent, Atlas Air Worldwide Holdings (AAWH) reported 2009 net income of +$77.8 million, up +22.1% from a +$63.7 million profit in 2008, as (AAWH) reaped the benefits from turning (PAO) into a DHL Express carrier in October 2008 and its decision to retire -14 less efficient 747-200F freighters in 2007 and 2008.
(AAWH) parked additional 747-200Fs late last year and at the beginning of this year, leaving it with just five plus 22 747-400Fs, giving it an "efficient" fleet that it believes is helping it operate profitably. It plans to begin taking deliveries of 12 747-8Fs in 2011.
President & CEO, William Flynn said Atlas (TLS) was able to take advantage of a rebounding commercial charter airfreight market in the 2009 fourth quarter. "The global scale and scope of our operations positioned us very well to participate in a vigorous commercial charter market in the fourth quarter, especially in the Asia/Pacific region," he commented. "Low inventory levels and stronger-than-expected holiday demand during the quarter generated yields in our commercial charter segment not seen since ports on the USA West Coast were shut down in the second half of 2002."
Revenue generated by commercial charter operations more than doubled in the quarter to $102.2 million from $46.7 million in the 2008 period. Atlas (TLS) posted 2009 fourth-quarter net income of +$28.3 million, down -54.6% from +$62.3 million in the year-prior period when its bottom line was boosted by $153.6 million related to DHL's purchasing a 49% equity interest in Polar (PAO).
Revenue for full-year 2009 was off 34.2% to $1.06 billion while expenses lowered 43.7% to $911.5 million, producing operating income of +$150 million, reversed from an operating loss of -$12.1 million in 2008. Total block hours flown decreased -10.2% to 108,969.
Looking ahead, Flynn projected that the Purchase, NY-based company will earn a net profit of +$80 million for full-year 2010 assuming "a modest pace of economic recovery."
ugust 2010: Atlas Air Worldwide Holdings (AAWH), parent of Atlas Air (TLS), Polar Air Cargo (PAO), and Titan Aviation Leasing, posted second-quarter net income of +$32.8 million, a more than three-fold improvement over a +$10.6 million profit in the year-ago period. Total block hours flown increased +22% year-over-year to 32,207, while average utilization of operating airplanes excluding dry leases totaled approximately 12.6 hour per airplane per day, up +24.8% compared with 10.1 hours last year. The strong performance reflects "a substantial increase in flying activity by wet-lease (ACMI) and commercial charter customers," the company stated.
President & CEO, William Flynn said the cargo carrier's continued growth in earnings is "driven by the global scale and scope of our customer offerings and continuing improvement in airfreight demand, which has seen global airfreight traffic rise above pre-recession levels. Tight supply in the wide body, long-haul, heavy freighter space has also contributed to a significant improvement in rates."
(AAWH) projected that its full-year adjusted net earnings will "exceed $113 million." Full-year 2009 net income was +$77.8 million, up +22.1% from a +$63.7 million profit in 2008. Second-quarter revenue rose +48.4% to $356.2 million, while expenses lifted +36.6% to $292.9 million, producing operating income of +$63.3 million, widened +148.2% from +$25.5 million last year.
September 2010: Polar Air Cargo (PAO), a subsidiary of Atlas Air Worldwide Holdings (AAWH), said it reached an agreement with the USA Department of Justice (DOJ) to plead guilty to antitrust violations related to cargo pricing and pay a $17.4 million fine in installments over five years. (PAO) becomes the 17th carrier to have pleaded guilty or have agreed to plead guilty in the (DOJ)'s ongoing investigation into air cargo price fixing.
"The agreement is related to shipments from the United States to Australia during the period from January 2000 to April 2003, covering conduct by former employees," (AAWH) said. The conduct relates to "alleged manipulation…of fuel surcharges and other rate components for air cargo services."
(AAWH) President & CEO, William Flynn noted the charges involve "conduct that began in 2000, almost two years before [Polar (PAO) was acquired by (AAWH)]. The matter occurred before [PAO]'s emergence from bankruptcy in July 2004." He added that no "current board or senior management were involved in or are implicated in this investigation." The agreement is subject to court approval.
December 2010: Polar Air Cargo (PAO) is not accepting flight crew (FC) resumes. (PAO) has no pilots (FC) on furlough.
January 2011: Atlas Air Worldwide Holdings (AAWH) received the Air Transport World (ATW) Magazine 2011 Phoenix award in recognition of an airline that has achieved a commercial rebirth through a life-changing business transformation. SEE ATTACHED - - "
PAO-2011-01-ATW PHOENIX AWARD."
Atlas Air Worldwide Holdings (AAWH) Executive VP & CCO, Michael Steen was elected the new Chairman of The International Air Cargo Association, replacing former Cargolux Airlines International (CLX) President & CEO, Ulrich Ogiermann. Long one of the air cargo industry's most prominent figures, Ogiermann in November was indicted in the USA after the USA Department of Justice brought price-fixing charges against him. He said in a statement that he was leaving the (TIACA) Chairman's role for "personal reasons." Steen had been serving as (TIACA)'s Vice Chairman.
February 2011: Atlas Air Worldwide Holdings (AAWH) is "in a transformative phase" in which it is solidifying profitability and is poised to escalate earnings further when new 747-8Fs begin delivering, President & CEO, William Flynn told investors. Speaking to the Stifel, Nicolaus & Company Transportation & Logistics Conference, available via webcast, he noted the company's record annual net profit of +$143 million for 2010, representing a +86% improvement over 2009 net income of +$76.2 million.
Flynn pointed out that (AAWH), parent of wet-lease (ACMI) cargo carriers Atlas Air (TLS) and Polar Air Cargo (PAO), is achieving the strong results even though "Boeing (TBC) has yet to deliver the 747-8. We were already supposed to have three in service. We expect three [to be delivered] by year end and as those airplanes deliver, we see a substantial step-change leap to another level of earnings performance." (AAWH) has 12 747-8Fs on order.
(AAWH) saw full-year 2010 revenue surge +26.4% compared to 2009 to $1.34 billion, while expenses heightened +21.8% to $1.1 billion, including a +49.2% jump in fuel costs to $300.2 million. Operating income was +$227.9 million, up +51.9% over an operating profit of +$150 million in 2009. Total block hours flown in 2010 lifted +17.8% year-over-year to 128,358 including a +18.9% rise in (ACMI) block hours to 91,357.
"We anticipate steadily improving results throughout" 2011, Flynn said. "Airfreight demand going forward is very strong. New supply introduction [throughout the air cargo industry] has lagged demand [leading to] substantially higher yields."
(PAO) is not accepting flight crew (FC) resumes. (PAO) has no pilots (FC) on furlough.
May 2011: Atlas Air Worldwide Holdings (AAWH), parent of wet-lease (ACMI) cargo carriers Atlas Air (TLS) and Polar Air Cargo (PAO), posted first-quarter net income of +$10.5 million, down -68.9% from a +$33.8 million profit in the year-ago quarter.
(AAWH) noted that "the market was unable to quickly and fully absorb the dramatic rise in aviation fuel prices that began midway through the quarter." It also said its military charter business suffered, with demand for deliveries down from the year-ago quarter.
President & CEO, William Flynn commented, "We anticipate steadily improving results throughout the year. Our guidance continues to assume that we will receive and place into service three 747-8Fs from Boeing (TBC) in the beginning of the fourth quarter of 2011. To date, we do not have a final delivery schedule agreement with (TBC)." (TLS)/(PAO) has 12 747-8Fs on order.
Flynn does not see the first-quarter year-over-year earnings dip as a sign that (AAWH)'s momentum is slowing, particularly since its (ACMI) business performed well. "We expect earnings in 2011 and beyond to continue to benefit from our premium assets, the global scale and scope of our customer offerings and from the commercial and operating transformations that we are implementing," he stated. "We're fully utilizing our fleet of  highly reliable and efficient 747-400 airplanes, maximizing the capabilities of our older Classic 747 airplanes through military and commercial charter operations, and consistently delivering value-added operating solutions. Airfreight volumes continue to grow from record levels in 2010, and market demand for our high-payload, fuel-efficient 747-400 airplanes remains strong."
First-quarter revenue rose +0.8% compared to the year-ago period to $297.6 million, while expenses heightened +13.8% to $281.1 million, including a +14.9% increase in fuel costs to $74.2 million. Operating income was +$16.5 million, narrowed from an operating profit of +$48.1 million in the 2010 March quarter.
(ACMI) block hours flown during the quarter increased +22% year-over-year to 23,699, and total block hours heightened +12.1% to 31,210. (ACMI) revenue per block hour rose +6.5% to $6,162.
July 2011: Atlas Air Worldwide Holdings (AAWH) Senior VP, General Counsel & Chief Human Resources (HR) Officer, Adam Kokas was named Chairman of the Cargo Airline Association, succeeding (ABX) Air VP Flight Operations, Robert Gray, who held the position for five years.
September 2011: Atlas Air Worldwide Holdings (AAWH) said it will place two 747-8F freighters with Panalpina next year. (AAWH) said the two airplanes will be delivered in the first half of next year and immediately be placed into service for the Swiss freight forwarding and logistics giant. Under a multi-year wet-lease (ACMI) contract, (AAWH) subsidiary, Atlas Air (TLS) will operate two 747-8Fs dedicated to long-haul international cargo carriage on behalf of Panalpina.
(AAWH) President & CEO, William Flynn said, "These new airplanes will give Panalpina increased capacity and revenue-generating capability in a growing global airfreight market, while improving fuel economy."
(AAWH) said that (ACMI) contracted services (the largest segment of its business) saw first-half 2011 revenue rise +28.1% to $306.5 million. Following multiple delays, the 747-8F gained USA (FAA) and (EASA) certification last month and Boeing (TBC) plans to deliver the first 747-8F to launch customer Cargolux (CLX) this month.
Boeing (TBC)'s 747-8F freighter program was dealt another blow when Atlas Air Worldwide Holdings (AAWH) canceled three of the 12 747-8Fs it had on order, citing "lengthy delays and performance considerations."
Coming on the heels of Cargolux's (CLX) surprising decision to decline delivery of the first two 747-8Fs the (AAWH) move raises more questions about the airplanes's operating performance. A (CLX) executive said the 747-8F had an "overall performance shortfall," but there has been wide speculation that Qatar Airways (QTA), which holds a 35% stake in (CLX), played a strong role in the delivery deferral, in part to express its dissatisfaction with (TBC) over 787 delays.
But (AAWH) has long been eager to take delivery of its 747-8Fs and place them into wet-lease (ACMI) services. The termination of its first three 747-8Fs lends credence to the notion that the airplane (or, at least, the early-build units) fall short of promised performance metrics.
However, Cathay Pacific Airways (CAT) said it is "satisfied" with the 747-8F and will accept its first of the type next month. (CAT) is due to receive five 747-8Fs this year, four of which are on the flight line at (TBC) facilities in Everett, Washington, and five next year. (CAT) has options for a further 10.
(AAWH) said it now expects to receive three 747-8Fs in 2011, four in 2012 and two in 2013. The first five already have been placed under long-term wet-lease (ACMI) contracts with British Airways (BAB) (three) and Panalpina (two). (AAWH) President & CEO, William Flynn stated, "As prudent asset managers, terminating the first three airplanes 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 airplanes than those we have terminated."
By the end of 2013, (AAWH)'s cargo fleet is expected to comprise nine 747-8Fs and 24 747-400Fs. It plans to retire its last five 747-200Fs by mid-2012.
January 2012: Polar Air Cargo (PAO) is not accepting Flight Crew (FC) pilot resumes.
March 2012: SEE PHOTO - - "PAO-2012-03 - NEW DHL COLORS."
May 2012: Atlas Air Worldwide Holdings (AAWH), parent of wet-lease (ACMI) cargo carriers Atlas Air (TLS) and Polar Air Cargo (PAO), posted a first-quarter net income of +$12.8 million, up +21.9% from +$10.5 million in the year-ago period.
(AAWH) President & (CEO), William Flynn said the results were “well above” the company’s expectations. “The improvement was primarily due to a substantial pickup in the commercial airfreight market during March 2012,” he said. “Volumes and rates improved dramatically compared with January and February, and we were well-positioned to help customers respond to an increase in demand for airfreight capacity, especially out of Asia, for new, high-tech product launches, pharmaceuticals, automotive parts and other high-value, time-sensitive-to-market shipments,” he said.
First-quarter revenue was $359.30 million, up +20.7% from $297.61 million in the year-ago quarter, reflecting increases in revenue per block hour and volumes in (AMC) Charter business, including strong growth in military passenger service, as well as higher rates and volumes in (ACMI) and Commercial Charter operations.
Operating expenses were $338.7 million, up +20% from the 2011 first quarter, primarily due to increases in airplane fuel, labor expense, depreciation and amortization, plus other operating expenses, the company said.
Flynn said the company is reaffirming its 2012 guidance and continues to expect that market growth during the year will be “seasonal and self-half weighted.” He added: “Our new 747-8Fs are driving growth and profitability in our business. They have begun to enter service and will be an important contributor this year. In addition, we will benefit from our first full year of (AMC) Charter passenger service and a continuing step-up in (CMI) flying for Boeing (TBC) and (DHL) Express. We also anticipate that approximately 57% of our maintenance expense will be incurred in the first-half. As a result, we anticipate a sequential increase in our quarterly earnings throughout the year.”
Atlas Air Worldwide Holdings (AAWH) announced that its Atlas Air (TLS) unit has inked an agreement with Etihad Airways (EHD) to provide 747-400F freighter service for Etihad Cargo.
The contract, which begins in June, is for one 747-400F under a multiyear aircraft, crew, maintenance and insurance (ACMI) wet-lease. According to (AAWH), this will be the first 747-400F in Etihad Cargo’s global network and it will link Asia, Africa, Europe and other global trade lanes with Etihad Airways (EHD)’s hub in Abu Dhabi.
SEE ATTACHED CURRENT STATUS FROM "AIRWAYS" MAGAZINE - - "PAO-2012-05 - CURRENT STATUS-A/B/C."
July 2012: (DHL) opened a $175 million hub at Shanghai Pudong airport (PVG) and said it would invest another $132 million over the next two years to enable it to dedicate eight additional freighter airplanes to (PVG) for flights to north Asia, Europe and the USA.
The new (PVG) express cargo facility spans 88,000 sq m and can process up to 20,000 documents and 20,000 parcels per hour. The German delivery giant already operates Asian hubs in Hong Kong, Bangkok and Singapore.
The planned new flights from (PVG), to be implemented by 2014, will be operated by Aerologic (AGC), DHL Air UK (DHK) and Atlas Air Worldwide Holdings (AAWH) subsidiary, Polar Air Cargo (PAO). “There will be a variety of other providers as well,” (DHL) said.
(DHL) currently operates cargo flights from (PVG) to Hong Kong, destinations in Japan, Leipzig and Cincinnati. Later this year it plans to start new flights from the airport to Seoul Incheon, Taipei, Dalian and Qingdao. “Beijing and Xiamen [are] likely to come on stream in 2013,” it said.
September 2012: Atlas Air Worldwide Holdings (AAWW) will operate two 747-8F freighters for DHL Express under a wet lease (ACMI) agreement beginning in the fourth quarter.
Operated by Atlas Air (TLS) in the Polar Air Cargo (PAO) Worldwide express network, the 747-8F will be deployed in the Asian and transpacific markets and will replace two 747-400Fs in service for DHL Express.
“With these new 747-8F freighters, DHL Express will have increased capacity and revenue-generating capability in one of the fastest developing regions of the world,” (AAWW) President & (CEO), William Flynn said.
Atlas Air (TLS) ordered nine 747-8Fs and expects to take delivery of the final two airplanes in the first half of 2013.
October 2012: Atlas Air (TLS) has taken delivery of its sixth 747-8F freighter, which will be operated by Atlas Air (TLS) in Polar Air Cargo Worldwide (PAO)’s express network under a wet-lease (ACMI) arrangement for the benefit of (DHL) Express. (TLS) expects to receive one additional 747-8F in 2012 and two in the first half of 2013 for a total of nine.
November 2012: Atlas Air Worldwide Holdings (AAWH), parent of Atlas Air (TLS) and Polar Air Cargo (PAO), posted third-quarter net income of +$33.9 million, up +20.2% over a net profit of +$28.2 million in the prior-year period. Revenue rose +13% year-over-year to $409.3 million.
President & (CEO), William Flynn said the company achieved strong results even as the overall air cargo market has “underperformed expectations this year.” He said (AAWH) expects “strong, double-digit earnings growth” for the full year, though not as robust as previously anticipated “given the relative underperformance of the airfreight market to date this year and the softer-than-expected peak season that is materializing.”
(AAWH) earned +$62.3 million in operating income in the third quarter, up +43.2% year-over-year. Block hours flown in its core wet-lease (ACMI) business rose +7.7% to 28,451 and revenue per (ACMI) block hour increased +1% to $6,247.
April 2013: SEE ATTACHED "AIRWAYS" MAGAZINE UPDATE - - "PAO-2013-04 - UPDATE."
May 2013: Polar Air Cargo (PAO) and Atlas Air (TLS) parent, Atlas Air Worldwide Holdings earned first-quarter net income of +$20.1 million, up +57% over a net profit of +$12.8 million in the year-ago period, on a +5% rise in revenue to $377.3 million.
(PAO) will fly Tokyo - Sydney - Incheon 767-300F freighter service, as well as Taipei - Nagoya - Incheon 767-300F service. Twice-weekly, Hong Kong - Cincinnati service is added using 767-300Fs from sister company, Atlas Air (TLS).
August 2013: According to FAPA.aero, Polar Air Cargo (PAO) is not accepting pilot (FC) resumes.
December 2013: Atlas Air (TLS) has signed an agreement with Hong Kong-based, (BST) Logistics, a business partner of Navitrans International Freight Forwarding, for the wet-lease of one 747-8F. The contract is scheduled to begin in February 2014 and will allow (BST) Logistics to provide dedicated airfreight services on key global routes connecting the USA, Europe, and Asia. Of (TLS)'s six 747-8Fs, two currently operate for Luxembourg's Panalpina World Transport (PLP), two are operated by Polar Air Cargo (PAO) on behalf of (DHL) Express, while a fifth operates for Etihad Airways (EHD).
May 2014: DHL Express (DHK) has leased two Boeing 747-8F freighters from Atlas Air (TLS). The two 747-7Fs will be operated by Atlas Air (TLS) in Polar Air Cargo (PAO) Worldwide’s transpacific express network under an (ACMI) wet-lease arrangement. The 747-8Fs replace two Boeing 747-400F freighters currently in (ACMI) service for (DHK).
July 2014: Premier Aviation Overhaul Center and Atlas Air Worldwide Holdings (AAWH) (TLS)(PAO) have signed a two-year agreement plus options for heavy maintenance on Boeing 767-200s and 767-300s and 747-400s.
February 2015: Outsourced air services provider, Atlas Air Worldwide Holdings (AAWW) (TLS)/(PAO) reported full-year consolidated net income of +$106.8 million for 2014, up +13.8% from 2013’s net profit of +$93.8 million. (AAWW) is the parent company to Atlas Air (TLS), Titan Aviation Holdings, and majority owner of Polar Air Cargo (PAO). The company is based in Purchase, New York.
“2014 ended on a strong note and 2015 is starting out well,” (AAWW) President & (CEO), William Flynn said. “After the first significant peak-season in several years, airfreight activity in the first-quarter [of 2015] so far continues to reflect the broad-based pickup in demand that began in 2014.”
(TLS)’s fourth-quarter net profit was +$41.6 million, a +39% year-over-year (YOY) improvement on the company’s (4Q) 2013 +$30 million net income, as well as the Atlas (TLS)’ best quarterly net result of the year (compared to (1Q) 2014’s $7.9 million; (2Q) 2014’s $29.6 million; and (3Q) 2014’s $27.6 million).
Atlas Air (TLS)’ adjusted net income for the year, reconciled to non-(GAAP) measures, was +$93.5 million, down -3.4% (YOY) from 2013’s full-year +$96.8 million in adjusted net income.
(TLS)’ consolidated full-year revenue grew +8.6% (YOY) to $1.8 billion; expenses were up +10.4% (YOY) to $1.62 billion. The company’s operating profit for the year was +$176 million, down -5.8% (YOY). (TLS)’ consolidated revenue for the fourth-quarter was $488.9 million, up +3.9% (YOY); operating expenses were also up +3.9% (YOY) to $428.7 million. The company’s operating profit for the quarter came to +$60.2 million, up +3.7% (YOY).
Atlas’ (TLS)' wet-lease (ACMI) division full-year revenue was up +3.1% YOY to $778.1 million. (ACMI) block hours flown for the year were down -0.3% (YOY) to 115,042; (ACMI) revenue per block hour grew +3.3% (YOY) to $6,764. “[ACMI] block hours were impacted by lower 747-400 flying by certain (ACMI) customers and the return of three 747-8F airplanes from British Airways (BAB) in April and early May of 2014,” (TLS) said.
Full-year revenue at (TLS)’ commercial charter division was up +6.4% (YOY) to $906.7 million. Total charter block hours flown increased +5.1% (YOY), to 44,697. “The increase was primarily driven by incremental passenger flying for the US Air Force Air Mobility Command (AMC) as former competitors exited the charter market and increased commercial cargo demand,” (TLS) said. Total charter revenue per block hour was up +1.2% (YOY) to $20,285. Passenger charter block hours flown were up +11.7% (YOY) to 13,085; passenger charter revenue per block hour dipped -0.8% (YOY) to $20,449. Cargo charter block hours flown were up +2.6% (YOY) to 31,612; cargo charter revenue per block hour grew +2% (YOY) to $20,217.
Atlas (TLS)’ dry-leasing division, Titan Aviation more than doubled its revenue in 2014, to $100.1 million, up from $35.2 million in 2013. (TLS) pointed to the introduction of three new Boeing 777-200LRF airplanes in the 2014 first quarter, plus three 777-200LRFs acquired in 2013, as the source of its revenue growth in 2014. All of the freighters are being dry-leased to customers on a long-term basis.
767-306 (27611, N647GT), ex-(ET-AME), sub-leased from Atlas Air (TLS).
January 2016: "Atlas Air Worldwide Holdings (AAWH) (TLS)/(PAO) to Acquire Southern Air (SOF) in Major USA Cargo Merger" by (ATW) Aaron Karp, January 19, 2016.
Atlas Air Worldwide Holdings (AAWH) (TLS)/(PAO) has agreed to acquire Southern Air Holdings (SOF) for $110 million in an all-cash transaction. The deal, if approved by the USA Department of Transportation (DOT), would mark a major consolidation in the USA air cargo industry.
Purchase, New York-based Atlas (AAWH) is the parent company of international airfreight carriers Atlas Air (TLS) and Polar Air Cargo (PAO). It operates the world’s largest Boeing 747F freighter fleet. Cincinnati-based Southern Air (SOF) is also affiliated with Florida West International Airways (PAI), which is part of the transaction.
(AAWH) President & (CEO), William Flynn called the transaction “strategically compelling, highly complementary and immediately accretive.” (AAWH) said that the deal is “expected to close in the next few months.” Flynn added that (AAWH) is “eager to capitalize on the substantial opportunities that the transaction will provide, especially [adding] 777 and 737 airplane operations.”
(SOF) flies five Boeing 777-200Fs and five 737-400Fs under flight services agreements with (DHL) Express, which also owns a 49% stake in Polar (PAO). Miami-based Florida West (PAI) operates 767-300F scheduled and charter services under contract with Chile-based LAN Cargo (LCO).
“The result [of the merger] will be a more diversified and profitable company offering access to the widest range of modern, efficient airplanes together with a broader mix of services and a greater scale and global footprint that will drive significant value for our customers and shareholders,” Flynn said.
The companies will have a combined fleet of more than >75 aircraft.
(AAWH) said the transaction is “expected to be immediately accretive” to adjusted earnings per share in 2016, and noted it will complete the deal with cash on hand, adding no debt to its balance sheet.
April 2016: "Atlas Air Worldwide - Southern Air Cargo Merger Completed" by (ATW) Aaron Karp, April 7, 2016.
Atlas Air Worldwide Holdings (AAWH) has closed its acquisition of Southern Air (SOF) Holdings for $110 million.
Purchase, New York-based (AAWH) is the parent company of international airfreight carriers Atlas Air (TLS) and Polar Air Cargo (PAO). It operates the world’s largest Boeing 747F freighter fleet with more than >40, including 10 747-8Fs.
Cincinnati-based, Southern Air (SOF) flies five 777-200Fs and five 737-400Fs under contract for (DHL) Express, which also owns a 49% stake in Polar (PAO). Southern Air Holdings additionally owns Miami-based Florida West International Airways (PAI), which operates 767-300F scheduled and charter services under contract with Chile-based LAN Cargo (LCO), and now will be an (AAWH) (TLS)/(PAO) subsidiary.
The USA air cargo merger deal was first announced in January. “The strategically compelling, highly complementary combination provides Atlas Air Worldwide immediate entry into 777F and 737F aircraft operating platforms with opportunities for additional growth, enhancing Atlas Air Worldwide’s position as a leading global provider of outsourced airplane and aviation operating services,” (AAWH) said.
(AAWH) President & (CEO), William Flynn added, “We have known and respected Southern Air (SOF) for some time, and we have a lot in common. Our complementary operations will also provide a broader array of services for customers and new avenues of business growth, which will generate greater opportunities for employees and drive value for shareholders.”
Post-merger, all of the (AAWH) subsidiary carriers will have a combined fleet totaling 75 airplanes. (AAWH) noted that it did not assume any debt in connection with the transaction.
May 2016: "Emergency Landing at Hong Kong Airport After Fire Indicated Aboard Cargo Flight" By Clifford Lo, "South China Morning Post" May 13, 2016.
Emergency crews were placed on alert and standby at Hong Kong International Airport at daybreak "black" Friday April 13 after a cargo flight reported a fire warning indication on board and requested an emergency landing.
Eleven fire engines, four fireboats and four ambulances were deployed after a call was made to the airport's air traffic control (ATC) center shortly after 5:45 am, according to the Fire Department. "We were informed that a full emergency landing was requested because there was an indication of fire in its cargo compartment," a Fire Services Department spokesman said.
He said the emergency landing was executed without incident. The spokesman said there was no sign of burning or damage on board the flight and that no casualties were reported.
The center received an emergency landing request from Polar Air Cargo (PAO) flight PO654 at 5:45 am, which had departed Chek Lap Kok airport at 5:41 am.
The authority's spokeswoman said the flight was en route to Chicago in the USA, when it was forced to return to Hong Kong. She said it landed safety at 5:55 am and that airport operations were "unaffected" by the incident.
The Civil Aviation Department (CAD) said that "subsequent inspection revealed that there was no indications of fire on board". The authority's website showed flight PO654, a Boeing 747, subsequently left Hong Kong for Chicago at 9:00 am Friday.
As of Friday afternoon, Polar Air Cargo (PAO) was not available for comment. A duty supervisor for Jardine Airport Services Limited, the company's Hong Kong-based ground handling agent, refused to comment.
January 2017: Wilmington, Ohio-b1ased Air Transport Services Group (ATSG), parent of cargo carriers (ABX) Air and Air Transport International (TIN), has acquired Tampa, Florida-based (PEMCO) World Air Services (ASC).
(PEMCO) (ASC) offers heavy maintenance, repair & overhaul (MRO) services to airlines, and also is a leading provider of passenger-to-freighter conversions on narrow body airplanes with a focus on 737-300 and 737-400 conversions.
Financial details of the acquisition were not provided, though (ATSG) said it did not assume any (PEMCO) (ASC) debt as part of the transaction. “This acquisition will allow for a number of strategic benefits through combining operational strengths, expanded capabilities and cost savings related to shared services between the companies,” (ATSG) said. In particular, (ATSG) subsidiary Airborne Maintenance & Engineering Services (AMES) and PEMCO (ASC) will jointly market (MRO) services globally.
“The combination of (PEMCO) (ASC)’s conversion and (MRO) sales of both Airbus (EDS) and Boeing (TBC) products with (AMES)’ existing offerings will create a sustained, growth-oriented aircraft maintenance product and services portfolio,” (ATSG) President & (CEO) Joe Hete said, adding that “the (PEMCO) (ASC) acquisition is expected to be accretive to (ATSG)’s earnings starting in 2017.”
July 2018: See attached photo of 2 747s cracking a joke at MIA!
Click below for photos:
PAO-747-400F N453PA 2018-04.jpg
PAO-747-8F - 2014-12
0 747-100F (JT9D-7A) (747-121: 10-19642, /70, EX-(PAA), (42-19755; 52-19753; 82-19897; PARTED; 747-123: 90-20109, EX-(AAL), 747-132SF: 155-20246, RETIRED 2000-10 (747-121F: 24-19650, /70 N617FF, EX-(TOW). 19856 WFU ROSWELL 2001-07; 19733 PARTED 2001-11. 19755 PARTED 2002-05. 19753; 19754; SOLD TO JET MIDWEST, LEASED TO (KAC) 2002-09. 19756 PARTED 2002-11. 20109 RETURNED (ARK) 2003-03. ALL WFU. 19650 SCRAPPED 2004-08. 20326; SOLD TO (JMSL) 2005-11. 20109; WFU AT ROSWELL 2006-06. FREIGHTER.
0 747-2D3BF (CF6-50E2) (296-21251, /77 N505MC), (TLS) WET-LEASED 2002-10. RETURNED. FREIGHTER.
0 747-2F6F (421-21832, N534MC), (TLS) WET-LEASED 2004-04. (AGAIN) 2005-11. RETURNED 2006-08, SOLD TO (SOF) 2006-10. FREIGHTER.
1 747-2R7F (JT9D-70A) (354-21650, /79 N639FE), EX-(FED)/(TBC) 2000-11. FREIGHTER.
0 747-2U3F (JT9D-7Q) (22768, N105TR; 22769, N106TR), EX-(GIA), (TIA) 2 YEAR LEASED 1999-10, CONVERTED TO F BY (IAI), (SIA) MAINTENANCE. 2 RETURNED 2004-05. 22769 LEASED TO (TWX). FREIGHTER.
0 747-230F (CF6-50E2) (299-21221, /76 N509MC; 356-21644, N508MC), (TLS) WET-LEASED 2004-05. 21644 RETURNED 2005-09. 21644; (TLS) LEASED (AGAIN) 2005-10. 21221; RETURNED TO (TLS); SOLD TO (SOF) 2006-10. FREIGHTER.
0 747-245F (396-21841, /79 N925FT), EX-(FED)/(TBC) 2000-11. RETURNED TO (TBC) 2002-05. FREIGHTER.
0 747-249F (21827), KINTER HOLDINGS LEASED, (SIA) MAINTENANCE. RETURNED 2003-08. FREIGHTER.
4 747-249F (JT9D-7Q) (460-22237, /80 N920FT), EX-(AHK), (GUI) LEASED. 22237; LEASED TO (MKA) 2006-10. FREIGHTER.
0 747-259BC (JT9D-7Q) (372-21730, /79, N924FT), EX-(TOW), WET-LEASED TO (UPS) 2001-02 FOR 2 YEARS; RETURNED FROM (UPS) 2003-02. WFU IN STORAGE 2005-03. FREIGHTER.
0 747-283F (JT9D-70A) (358-21575, /79 N921FT "GRANT LEDFORD"), (GUI) LEASED, WET-LEASED TO (FED) 1998-12, (SIA) MAINTENANCE. SOLD TO FINAVAL AVIATION 2006-04. FREIGHTER.
0 747-341F (CF6-50E2) (629-23395, /85 N355MC; 24837, N24837), (TLS) WET-LEASED 2002-05. 23394; 23395; 24837; RETURNED 2004-03. FREIGHTER.
6 747-46NF (CF6-80C2B1F) (1257-30808, /00 N450PA "THE SPIRIT OF LONG BEACH") (1259-30809, /00 N451PA - - SEE PHOTO - - SWG-2012-03 - NEW (DHL) COLORS;" 1260-30810, /00 N452PA). (GEH) LEASED. FREIGHTER.
1 747-47UF (CF6-80C2B5F) (1217-29257, /99 N496MC), (TLS) WET-LEASED 2002-10. FREIGHTER.
1 747-47UF (SCD) (CF6-80C2B5F) (1307-32838, /09 N416MC), NOTED AT TOKYO 2012-07 IN (DHL) COLORS. FREIGHTER.
6 +6/14 ORDERS 747-87UF (GEnx) (37565, N851GT, 2012-07 IN PANALPINA COLORS), 2 WET-LEASED TO (DHK) 2014-05. FREIGHTER.
7 767-3JHERF (980-37805, G-DHLE - - SEE PHOTO - - "DHK-767-3JHERF-2009-06;" 981-37806, G-DHLF, 2009-09; 982-37807, G-DHLG, 2009-09; 37809, N642GT - - SEE PHOTO - - "PAO-767-3JHERF-2014-04"), WET-LEASED TO (DHK). WITH WINGLETS. FREIGHTER.
1 767-306 (27611, N647GT), EX-(ET-AME), SUB-LEASED FROM ATLAS AIR (TLS).
Click below for photos:
ERIC DULL, CHAIRMAN.
WILLIAM FLYNN, PRESIDENT & CHIEF EXECUTIVE OFFICER (CEO) (2006-05).
JASON GRANT, SENIOR VP & CHIEF FINANCIAL OFFICER (CFO) (2007-09).
JOHN DIETRICH, EXECUTIVE VP & CHIEF OPERATIONS OFFICER (COO), EX-(UAL), (2006-09).
MICHAEL STEEN, SENIOR VP & CHIEF MARKETING OFFICER (CMO), EX-(SBE)/(KLM) (2007-04).
EDWARD HERNANDEZ, SENIOR VP SALES & MARKETING.
ADAM KOKAS, SENIOR VP, GENERAL COUNSEL & CHIEF HUMAN RESOURCES (HR) OFFICER (AAWH).
ROBERT STEPHENS, VP FLIGHT OPERATIONS.
RICHARD SCHOLL, VP MAINTENANCE & ENGINEERING.
RONALD LANE, CHIEF MARKETING OFFICER (CMO).
LYNN STAUFFER, VP CHARTER SALES.
GARY RUNYON, VP GLOBAL CUSTOMER SALES.
KEVIN M0NTGOMERY, VP PLANNING & GOVERNMENTAL AFFAIRS.
RICHARD NUTTALL, VP SALES, THE AMERICAS (2003-05).
HENDRIK FALK, VP SALES EUROPE, AFRICA, MIDDLE EAST & INDIA RESIGNS TO JOIN (NNA)/(WLD) AS VP CARGO SALES (2009-10).
KERSTI KREPP, VP SALES SOUTHERN ASIA.
ROY SYKES, MAINTENANCE DIRECTOR.
FRANK BARBER, OPERATIONS DIRECTOR.
JOE LUDWIG, DIRECTOR QUALITY CONTROL (QC).