Guv:
There was no way Polar was going to "beat [Atlas] to death"! Polar was already close to insolvency, and only constant infusions of cash from GE Capital kept them afloat. They could only compete by continuing to operate at a loss. Apparently, GEC decided to cut loose, write off the sunk costs, and go back to lending money.
OTOH, with Polar sinking and an ex GE executive as Atlas Chairman, the deal was indeed no surprise, if not predictable.
Also, this deal allows Atlas (or Polar, at Atlas/GEC direction) to take some of the "oversupply" of lift capacity off the market by parting out the old, inefficient, and CHEAP -100s. They might even choose to part out some of the -200s (especially the Pratt-powered ones), just to keep any competitors from getting them!
One of the few things yet to be seen is whether Atlas can make Polar profitable with its smaller size, and still keep it as an "independent" subsidiary with all its duplicated operations and maintenance functions. I'm REALLY skeptical there!