Atlas Air Worldwide holdings completes acquisition of Polar Air Cargo

Atlas Air Worldwide Holdings announced that it has acquired Polar Air Cargo from GE Capital Aviation Services (GECAS), a GE Capital company. (11/5/2001)
Under the terms of the agreement announced in July, the stated purchase price of $84 million was effectively reduced by $30 million through certain financing commitments as well as the restructuring of associated aircraft leases. In addition, approximately half of the purchase price has now been financed through a two-year term loan. The transaction was completed following receipt of exemption authority for such purchase from the U.S. Department of Transportation.
Atlas Air Worldwide Holdings (AAWH) said that it expects to continue the full utilization of Polar’s current operating fleet of seventeen B747 freighters through the remainder of this year’s peak season period. Thereafter, AAWH intends to resize Polar’s fleet, focusing on its fleet of four B747-400 aircraft and a yet to be determined number of B747-200 aircraft, operating in scheduled service. Up to eight B747-100 aircraft currently in Polar’s fleet will be permanently parked.
Polar was recently awarded valuable fifth freedom rights between Hong Kong and Seoul, South Korea, for which a schedule will be announced shortly. In addition, Polar Air Cargo holds route authority and sixteen weekly slots at Tokyo’s Narita airport. Tokyo is the world’s fourth largest freight market, and operating rights there are highly sought after and severely restricted in number.
“Polar’s valuable Japanese route authorities and its fleet of B747-400 freighter aircraft will complement Atlas Air’s capabilities and offer new opportunities to customers of both companies,” said Richard Shuyler, Chief Executive Officer for both Atlas Air Worldwide Holdings, Inc. and Atlas Air, Inc. “Our current plan is to keep the Atlas Air and Polar brands separate, but we also expect to achieve significant synergies between the two companies. In addition, certain changes to the terms of the transaction were made to better reflect the current economic environment and help ensure ample liquidity.”
Shuyler added, “We believe the additional liquidity afforded by the revised terms, as well as the addition of the fifth freedom rights between Hong Kong and Seoul, will make this an even more attractive acquisition for AAWH going forward. We welcome the fine employees of Polar to the Atlas family and look forward to a long and profitable relationship.”
Polar Air Cargo specializes in time-definite, cost-effective airport-to-airport scheduled airfreight service. Its fleet of Boeing 747 freighter aircraft provides scheduled service to all of the world’s major economic regions.