Atlas reducing fleet of planes due to economy
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- February
- 6
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.
This entry was posted
on Friday, February 6th, 2009 at 10:11 am by Allan Drury.
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