Atlas Air and DHL Terminate Polar Air Cargo Joint Venture
Introduction
Atlas Air and DHL Express have mutually dissolved their 18-year-old Polar Air Cargo joint venture. Atlas will continue to provide air transport services for DHL under vendor arrangements, while pursuing a diversified and high-margin business strategy.
Polar Air Cargo Operations
Polar Air Cargo operated scheduled express services, with Atlas Air handling aircraft operations. DHL primarily utilized the cargo space, while Atlas marketed excess capacity to freight forwarders.
Post-Venture Arrangements
Some operations and staff will transition to Atlas and DHL, respectively. Atlas will maintain the Polar Air operating certificate. Atlas will acquire four Boeing 747-8 freighters from Polar and deploy them to other customers. DHL will regain two Boeing 777 cargo jets.
Atlas Air's Strategic Focus
Atlas Air is shifting its focus to direct customer relationships and commercial diversification. The carrier has recently added Chinese e-commerce platforms to its clientele and pursued e-commerce business growth.
Departure from Polar Air Scandal
Atlas Air's disassociation from Polar Air may be related to a recent fraud scandal involving kickbacks from service providers and customers.
Partnership with Worldwide Flight Services
Atlas Air has signed an agreement with Worldwide Flight Services (WFS) to enhance ground and cargo handling capabilities for e-commerce and other high-value shipments. WFS provides warehousing, ramp handling, and crew transport services for Atlas at major U.S. airports.
Conclusion
The termination of the Polar Air Cargo joint venture marks a significant change for Atlas Air and DHL. Atlas Air's strategic shift towards direct sales and diversification aligns with its long-term goals. The partnership with WFS further strengthens Atlas Air's position in the e-commerce and high-value cargo markets.