Profile: Atlas Air Worldwide Holdings, Inc. (AAWW.O)

Atlas Air Worldwide Holdings, Inc. (AAWW), incorporated in 2000, provides leased freighter aircraft, furnishing outsourced air cargo operating services and solutions to the global air freight industry. AAWW manages and operates a fleet of 747 freighters. The Company’s customers include airlines, freight forwarders, the United States military and charter brokers. It provides global services with operations in Asia, the Middle East, Australia, Europe, South America, Africa and North America. AAWW operate its service offerings through four segments: ACMI, AMC Charter, Commercial Charter and Dry Leasing. AAWW is a holding company with two principal operating subsidiaries: Atlas Air, Inc. (Atlas), which is wholly owned, and Polar Air Cargo Worldwide, Inc. (Polar), in which it has a 75% voting interest.

ACMI

The Company’s ACMI segment provides freighter aircraft leasing services, such as outsourced operating solutions, including the provision of crew, maintenance and insurance for the aircraft. ACMI contracts range from three to six year periods for 747-400s and shorter periods for 747-200s. ACMI also provides outsourced airport-to-airport cargo aircraft solutions to Polar for DHL and other customers (Express Network ACMI). The Company is paid a Block Hour rate for the time the aircraft is operated. The aircraft are generally operated under the traffic rights of the customer. All other direct operating expenses, such as fuel, overfly and landing fees and ground handling, are borne by the customer. All of its ACMI contracts provide that the aircraft remain under its operating control, possession and direction at all times. ACMI revenue represented 22.3% of its operating revenue and 48.7% of its operated block hours during the year ended December 31, 2008.

AMC Charter

The AMC Charter business provides planeload charter flights to the United States Military. In the case of AMC operations, the price of fuel used during AMC flights is fixed by the military. The contracted charter rates (per mile) and fuel prices (per gallon) are established and fixed by the AMC generally for 12-month periods running from October to September of the next year. The Company receives reimbursements from the AMC each month if the price of fuel paid by it to vendors for the AMC Charter flights exceeds the fixed price; if the price of fuel paid by it is less than the fixed price, then the Company pays the difference to AMC. Revenue derived from the AMC Charter business represented 26.5% of operating revenue and 14.8% of its operated block hours during 2008.

Commercial Charter

The Company’s Commercial Charter business segment provides planeload capacity to customers for one or more flights based on a specific origin and destination. Customers include charter brokers, freight forwarders, direct shippers and airlines. Charter customers pay a fixed charter fee that includes fuel, insurance, landing fees, overfly and all other operational fees and costs. The Commercial Charter business is booked on a short-term. In addition, Atlas provides limited airport-to-airport cargo services to markets, including Viracopos Airport near Sao Paulo, Brazil. Revenue derived from its Commercial Charter business accounted for 7.9% of its operating revenue and 5.5% of its operated block hours during 2008.

Dry Leasing

The Company’s Dry Leasing segment provides for the leasing of aircraft and engines to customers, primarily to Global Supply Systems. AAWW also provides Dry Leasing services to other third party customers through Atlas and its newly formed leasing subsidiary, Titan Aviation Leasing Ltd. Revenue derived from its Dry Leasing business accounted for 3.0% of its operating revenue during 2008.

The Company competes with Southern, Evergreen International, FedEx, Kalitta, Lufthansa Charter, GECAS, Guggenheim Aviation Partners, Intrepid Aviation, Air Castle, AerCap, ILFC, AWAS, CIT Aerospace, Aviation Capital Group and RBS Aviation Capital.