Atlas Air reducing size of fleet due to economy
BY ALLAN DRURY
THE JOURNAL NEWS • FEBRUARY 6, 2009
The poor world economy has prompted Purchase-based Atlas Air Worldwide Holdings
Inc. to reduce its fleet of Boeing 747-200 planes by seven.
The company, which transports cargo all over the world, has also reduced the
size of its crew and ground staff, Atlas said this morning.
Atlas said it expects 2008 pre-tax earnings from operations of $55 million to
$60 million, excluding special gains and charges. Those results will include a
deferred gain of $155 million related to DHL Express' agreement to invest a 49
percent equity interest in Atlas subsidiary Polar Air Cargo Worldwide, Inc.
Atlas said it will also report a largely non-cash pre-tax charge of $85 million
to $95 million associated with its 747-200 fleet and a one-time maintenance cost
of $8 million related to the overhauls of five engines. The overhauls are due to
the early termination of a maintenance contract for the planes.
"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," said
William J. Flynn, the company's president chief executive.
The fleet reduction will leave the company with 22 747-400s and seven 747-200
freighters.