To All,
Finally! Some news...
GOLDEN, Colo.--(BUSINESS WIRE)--June 9, 1997--Atlas Air, Inc. (NASDAQ:ATLS)
announced today that it has signed a definitive agreement with Boeing to purchase ten 747-400
freighters powered by General Electric engines. These aircraft provide for additional fleet expansion
until the year 2001 and are integral to Atlas' strategic growth plans.
Under the terms of the agreement, Atlas will purchase ten new Boeing 747-400 freighter aircraft,
with the option to purchase an additional ten. Delivery of the ten firm aircraft will take place during a
four year period beginning in 1998. The delivery schedule has been established for four aircraft in
1998, two aircraft in 1999, three aircraft in 2000 and the tenth aircraft in 2001. The Company
expects to place the aircraft with its existing and prospective customers.
Michael Chowdry, Chairman and Chief Executive Officer of Atlas, stated, ``It is Atlas' objective to
ensure that its customers remain competitive and this is an opportunity for us to respond to their
changing needs which demonstrate increasing demand for the 747-400. The Boeing 747-400,
powered by high-performance General Electric engines, offers our customers greater range, fuel
efficiency and cargo capacity. The aircraft will expand our ability to service our customers in global
markets creating a competitive advantage for Atlas which we believe will significantly enhance our
shareholder value.''
``Atlas Air is continuing their innovative approach to the growing air cargo market by selecting the
Boeing 747-400 freighter to meet their customers' needs,'' said Ron Woodard, Boeing Commercial
Airplane Group president. ``Boeing is pleased that Atlas Air has selected the 747-400 as the
premier cargo airplane for their future plans,'' he added.
As Atlas' operations have expanded, the Company has constantly monitored and evaluated the
aircraft available on the market. Although the 747-200 will continue to be a mainstay, the Company
has come to recognize that adding the 747-400 to its fleet will better service many of its existing and
potential customers. The 747-400 burns less fuel, has longer range and greater payload capability
than the 747-200. In addition, long term cargo growth projections compiled by leading industry
analysts at MergeGlobal indicate that by 2006, 38% of the world market requiring aircraft that carry
100 tonnes or more would be most efficiently served by the 747-400. The Merge Global forecasts
also predict a demand for an additional 63 747-400s over the next 10 years.
Mickey Foret, Atlas' President and Chief Operating Officer, said ``A key component of Atlas'
strategic business plan has been to build the best fleet in the industry. It is our intention to standardize
our fleet with high gross weight, highly efficient GE powered aircraft. These aircraft will serve as
replacements for the five FedEx aircraft currently on lease through the end of this year thereby
eliminating inefficient aircraft with limited customer application from our fleet. We believe that the
combination of increasingly efficient and reliable aircraft and our professional and dedicated staff
provide our customer airlines with a product that is unmatched in the industry.''
``By investing in the 747-400, we are investing in a broader, more customer responsive fleet and
positioning ourselves for an increasingly demanding marketplace. We believe that this acquisition will
not only reduce Atlas' operating costs for the next decade, but it will also provide new aircraft for
those markets where new aircraft are preferred.''
Atlas Air has made arrangements for pre-delivery deposit financing and expects to secure permanent
financing from a combination of leveraged leases and Enhanced Equipment Trust Certificates.
Atlas Air is a United States certificated air carrier that operates a fleet of 747 freighters under
long-term ACMI contracts. These contracts include the provision by Atlas of Aircraft, Crew,
Maintenance and Insurance for some of the world's leading air carriers, including British Airways,
China Airlines, Cargolux, Emirates, Fast Air, KLM, LAS, Lufthansa, SAS, Thai International
Airways and Varig, serving a total of 62 cities in 38 countries.
Looks like they have everything under control. But if 5 of these 10 aircraft are going to replace the Fed Ex planes, that will only be a net gain of 5 airplanes over the next 4 years. I imagine they still plan on purchasing / leasing additional airplanes??
Any opinions / comments ????
Eric B. |
