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Corporate Background

The Company, with a fleet of 37 Boeing 747 aircraft, provides five specific service types: ACMI leasing; global scheduled service, commercial charter services; U.S. military charter services; and dry leasing.

During the early 1990s, Michael Chowdry, the founder of Atlas, observed that passenger airlines were losing money and parking aircraft, while the limited number of high-gross-weight, long-haul cargo aircraft were all being actively utilized.

At the time, freight hauling was largely an afterthought in the passenger airline industry. Most airlines sold belly capacity for air cargo in the baggage holds of passenger planes operated on passenger routes. Mr. Chowdry saw an opportunity in the air cargo sector, secured financing and founded Atlas.

The core of Atlas’s business was, and continues to be, the leasing of its aircraft to other airlines on an Aircraft, Crew, Maintenance and Insurance (ACMI) contract basis, which is also known as a wet lease.

Under an ACMI or wet lease contract, customers receive a dedicated aircraft that is crewed, maintained and insured by Atlas in exchange for an agreed-upon block hour rate and level of operation. The customer absorbs all other direct expenses of operation, such as fuel, landing fees and ground handling. The customer also bears the commercial risk of load and yield.

Atlas began operations in 1993 with one aircraft, a Boeing 747-200 (N505MC). During the 1990s, Atlas experienced substantial growth in its fleet and its operating and net revenues. The fleet initially grew through the purchase or lease of older Boeing 747-200 aircraft, which were reconfigured from passenger to cargo use.

In mid 1997, Atlas decided to place an order for 10 new, higher-performance Boeing 747-400 freighters, with an option to purchase up to 10 more. By 1998, demand for its services was so strong that Atlas increased its order to 12 Boeing 747-400 aircraft from the original 10. By the end of 2000, the Atlas fleet had grown to a total of 36 aircraft.

In February of 2001, AAWW formed its current holding company structure with Atlas as a wholly-owned subsidiary. In November of that year, AAWW acquired Polar Air Cargo, Inc., an all-cargo, scheduled-service carrier from GE Capital Aviation Services (GECAS). The acquisition added global, scheduled-service operations to AAWW’s existing portfolio of products.

Beginning as a small, trans-Pacific operator in 1994, Polar has expanded its scheduled-service operation to provide daily departures to four continents. Now, Polar provides scheduled cargo services to the world’s largest freight forwarders. It operates airport-to-airport, specific routes on a specific schedule, and customers pay to have their freight carried on those routes and schedules.

In June, 2007, Polar closed on a strategic transaction with DHL Express that gives DHL a 49% equity interest, including a 25% voting interest, in Polar. This landmark transaction provides Atlas, hence AAWW, with a valuable, long-term customer and a secure revenue stream. A related commercial arrangement includes blocked-space on Polar flights and flight-service support agreements with Atlas, and will ensure that DHL Express has access to aircraft capacity in key global markets. At the same time, Polar continues to serve its freight-forwarder customers with convenient schedules on existing routes.

In addition, both Atlas and Polar operate air-freight charter flights that support AAWW’s very complementary military and commercial charter operations.

Today, Atlas Air Worldwide Holdings, Inc. is proud to be the world’s largest operator of B747 freighter aircraft, and through strategic innovation, is shaping the future of this vital global industry.