Strategic Growth Initiative Expected To Begin Operations In May

Atlas Air Worldwide Holdings said Friday that its Atlas Air, Inc. unit has been approved by the U.S. Department of Defense to begin providing passenger charter service for U.S. military personnel, complementing the company’s long-time position as a premier supplier of military cargo charter solutions. The new service is expected to start in May.

“AMC passenger service is an exciting expansion of our business,” said William J. Flynn, President and Chief Executive Officer of Atlas Air Worldwide. “Our entry into passenger service for the U.S. military leverages the experience of our long-standing service in AMC cargo operations, our knowledge of the areas of activity and our success in providing premium, private-charter, passenger CMI operations for SonAir. These created a low-risk, low-cost entry opportunity for us.”

Mr. Flynn added, “We expect modest levels of military-passenger flying in 2011, which will increase in 2012. We anticipate a moderate earnings impact this year considering the hours of activity and the start-up costs we have incurred since January. Each hour we fly is an hour of growth for us and is part of our strategy to mitigate any reduction in AMC cargo demand.

“As a large percentage of flying is entitlement driven, we will size our fleet and operations to meet anticipated demand. Since approximately 95% of U.S. troops move via commercial air carriers, there should be a good level of sustained passenger demand. We foresee meaningful earnings growth from AMC passenger operations in 2012 and beyond.”

FMI: www.atlasair.com