Atlas Forms Global Network of Three Hubs, Revises Service Plan
By Jim Ott/Special to AviationNow.com
19-Nov-2001 3:23 PM U.S. EST
Atlas Air, a Boeing 747 cargo operator, is launching a three-hub global network with the mission to expand options for its clients including the option of taking a piece of freighter space.
Atlas is establishing hubs at Miami, Anchorage and Liege, Belgium, and putting together a high-frequency flight schedule. Its offices are at Purchase, N.Y.
Experts regard the new hub service as a way for charter operators like Atlas to compete with carriers such as FedEx and UPS. The new service is geared to improve options for clients who have been tending to acquire aircraft on their own, causing the world market for full charters to narrow.
Atlas deals with clients under contracts that cover the cost of aircraft, crew, maintenance and insurance. They are known as ACMI operators on that account.
Atlas officials are hoping that clients expand the use of space in its growing 747 fleet. Major clients are the cargo divisions of world airlines, which use Atlas as a supplement. Other clients include companies like Air Global International of Miami, which works directly with freight forwarders and contracts for the actual cargo shipment.
The new program is a break from tradition. Prior to the formation of this new partnership, Atlas signed contracts with clients to charter an entire aircraft. Under the new program, Atlas is offering clients the option to take a piece of aircraft capacity, known as fractional all-inclusive charters. It also is offering clients partial service to acquire space on certain flights, allowing the clients to expand at their own pace.
"By channeling cargo to central distribution points, Atlas Air provides its airline customers with the opportunity to develop markets and reduce transit time," said Stan Wraight, [cq] senior vice president of Sales and Marketing for Atlas Air, Inc.
The availability of piecemeal cargo service eliminates a risk for clients who formerly were required to contract for an aircraft even if they couldn't fill it for a return trip. That problem in cargo lingo is called "directional imbalance."
Atlas has served each of its new hubs for more than several years. Atlas spokeswoman Rachel Berry said the company has adequate facilities at each hub for loading and unloading cargo for distribution. Atlas has partnered with Jan de Rijk, a Dutch trucking company, to provide ground distribution in Europe. Anchorage will serve the Pacific Rim as well as providing a major entry point for the U.S. Miami will serve the other two points and a reception center for Latin America.
Atlas operates 37 Boeing 747s and has just completed the acquisition of Polar Air Cargo, another 747 operator. In 2000, Polar operated 20 747s and was expanding its fleet with 747-400 and 747-200 freighters. Berry said Polar was likely to focus its operations on the Anchorage hub