Message #7 From:
Stock News Bot Date: November 29, 2006 05:58:00 AM
AAWW News Atlas Air Worldwide Holdings and DHL Finalize Strategic Partnership Agreement
PURCHASE, N.Y.--(BUSINESS WIRE)--Atlas Air Worldwide Holdings, Inc. (AAWW) (Nasdaq: AAWW), a leading
provider of global air cargo services, announced today that its
subsidiary, Polar Air Cargo Worldwide, Inc. (Polar), has finalized the
terms of its strategic partnership agreement with DHL, including the
acquisition of a 49% equity interest in Polar by DHL, and a 20-year
commercial arrangement, which includes blocked-space and related flight
service support agreements, that will ensure DHL access to aircraft
capacity in key global markets.
On November 28, the parties executed a stock purchase agreement and
finalized key commercial agreements. Upon closing of the transaction,
the remaining commercial agreements will be signed and DHL will acquire
a 49% ownership interest, which includes a 25% voting interest, in Polar’s
scheduled-service business, in exchange for DHL’s
cash payment of $150 million, $75 million of which will be paid upon
closing, and $75 million to be paid in two installments on January 15,
2008 and November 17, 2008, subject to certain acceleration provisions.
Under the terms of the 20-year commercial arrangement, DHL will have
access to lift capacity through Polar’s
current fleet of six Boeing 747-400 Freighters, plus access to
additional available ACMI aircraft from AAWW’s
subsidiary, Atlas Air, Inc. (Atlas). This agreement will provide the
AAWW companies with a valuable, long-term customer and potential revenue
stream in excess of $3.5 billion over the full term of the agreement.
The transaction is expected to close in the first quarter of 2007,
subject to the receipt of all applicable regulatory and other
third-party approvals.
William J. Flynn, President and CEO of AAWW, said, “We
are pleased to have finalized the terms of our strategic partnership
with DHL on schedule. We continue to make excellent progress
implementing our strategy to deliver the greatest possible value to
customers and shareholders. Our partnership with express market leader
DHL will reinforce our leadership position as an outsource provider of
air cargo services, and will greatly enhance the value of our Company.”
About Atlas Air Worldwide Holdings, Inc.:
AAWW is the parent company of Atlas and Polar, which together operate
the world’s largest fleet of Boeing 747
freighter aircraft.
AAWW, through Atlas and Polar, offers scheduled air cargo service, cargo
charters, military charters, and ACMI aircraft leasing in which
customers receive a dedicated aircraft, crew, maintenance and insurance
on a long-term lease basis.
AAWW’s press releases, SEC filings and other
information may be accessed through the Company’s
home page, www.atlasair.com.
This release contains “forward-looking
statements” within the meaning of the Private
Securities Litigation Reform Act of 1995 that reflect AAWW’s
current views with respect to certain current and future events and
financial performance. Such forward-looking statements are and will be,
as the case may be, subject to many risks, uncertainties and factors
relating to the operations and business environments of AAWW and its
subsidiaries (collectively, the “companies”)
that may cause the actual results of the companies to be materially
different from any future results, express or implied, in such
forward-looking statements.
Factors that could cause actual results to differ materially from these
forward-looking statements include, but are not limited to, the
following: the ability of the companies to operate pursuant to the terms
of their financing facilities; the ability of the companies to obtain
and maintain normal terms with vendors and service providers; the
companies’ ability to maintain contracts that
are critical to their operations; the ability of the companies to fund
and execute their business plan; the ability of the companies to
attract, motivate and/or retain key executives and associates; the
ability of the companies to attract and retain customers; the continued
availability of our wide-body aircraft; demand for cargo services in the
markets in which the companies operate; economic conditions; the effects
of any hostilities or act of war (in the Middle East or elsewhere) or
any terrorist attack; labor costs and relations; financing costs; the
cost and availability of war risk insurance; our continued ability to
remedy weaknesses in our internal controls over financial reporting;
aviation fuel costs; security-related costs; competitive pressures on
pricing (especially from lower-cost competitors); volatility in the
international currency markets; weather conditions; government
legislation and regulation; consumer perceptions of the companies’
products and services; pending and future litigation; and other risks
and uncertainties set forth from time to time in AAWW’s
reports to the United States Securities and Exchange Commission.
For additional information, we refer you to the risk factors set forth
under the heading “Risk Factors”
in the Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission on November 9, 2006. Other factors and assumptions
not identified above are also involved in the preparation of
forward-looking statements, and the failure of such other factors and
assumptions to be realized may also cause actual results to differ
materially from those discussed.
AAWW assumes no obligation to update such statements contained in this
release to reflect actual results, changes in assumptions or changes in
other factors affecting such estimates other than as required by law.
