Atlas Air studies move to smaller widebody freighters

A strategy that could see all-Boeing 747 cargo operator Atlas Air Worldwide Holdings acquire mid-size widebody freighters is under preliminary consideration by management.

Although these are still "early days", Atlas has discussed how it might position for future business opportunities, including looking at "a different type of aircraft than the 747 that we've traditionally flown", which would fit into "a more regional kind of market", says Atlas.

Under consideration is "something more in the mid- to widebody" size range, says the company, with the Airbus A330 and Boeing 767 among the possible types under consideration.

"What we're thinking about is perhaps shorter commercial trade routes that would be attractive [but which] would not need the same type of 747 or 747-8 freighter [capacity]," says Atlas, adding: "If you were doing the shorter segment with smaller-scale aircraft, you could do a couple of runs during the day."

Management recently discussed these opportunities with investors. From the standpoint of organic growth, Atlas is looking at new ACMI [aircraft, crew, maintenance and insurance] markets and customers as well as charter market expansion, while strategic opportunities include "new aircraft type(s)" and "intra-regional markets", the company said in an investor presentation.

Atlas last year placed firm orders for 12 747-8 freighters and options on an additional 14 of the type. Deliveries are scheduled to start in 2010, and all 12 firm orders are expected to be in service by the end of 2011.

Atlas says: "The idea is that, on first glance, [the 747-8] complements our [ACMI operations]." ACMI operations are served by the company's Atlas Air operating unit. The company's other operator, Polar Air Cargo, operates scheduled services and assists with charters.

Atlas is looking to combine the crew forces of its two carriers into a single collective bargaining unit. However, last year it made the strategic decision to retain and conduct operations under both certificates rather than forego operations under the Atlas certificate and operate solely under the Polar authority.

Source: Flight International