Atlas Air Pilots Contract Tentative Agreement

[Po Boy]

Atlas Air Reaches Tentative Agreement With Crewmembers. .PURCHASE, N.Y.--(BUSINESS WIRE)--Jan. 25, 2002--Atlas Air, Inc. announced today that it has reached a tentative collective bargaining agreement on an initial contract with its flight crew employees, who are represented by the Air Line Pilots Association.

The agreement is subject to ratification by Atlas Air crewmembers. No details of the agreement are being released at this time.

"This is a long-term agreement that is good for both the company and our flight crew members,'' said Richard Shuyler, Chief Executive Officer of Atlas Air, Inc. "The contract that we've reached offers both parties the stability we need in this difficult economic environment.''

Atlas Air currently employs 621 active pilots and flight engineers, who operate the company's fleet of Boeing 747 aircraft.

Shuyler added, "I am proud of the contribution that our experienced, professional flight crewmembers have made, and continue to make, to Atlas Air's continuing success.''

Atlas Air, Inc. is a wholly owned subsidiary of Atlas Air Worldwide Holdings, Inc. (NYSE:CGO - news) and is a United States certificated air carrier. Atlas Air offers its customers a complete line of freighter services, specializing in ACMI contracts. These contracts include the provision by Atlas Air of the Aircraft, Crew, Maintenance and Insurance for some of the world's leading international carriers.

<img src="smile.gif" border="0">

[Perf Init]

Not Quite !!!!

The Atlas Air Worldwide Holding press release is in ERROR!!!!

The Atlas MEC "must first approve" the recommendation of the negotiating team thence "if approved" it goes to vote to the Atlas Air Council 072 membership.

[411A]

Ah yes, the "notorious" MEC, the big stumbling block to many an agreement.... .Can remember 'ole Bud Maytag at National Airlines years ago when he said...'let the MEC go pound sand...". .Wonder WHAT the rank and file pilots think?

[fightson]

411A. .If you have nothing good to say, you should keep your trap shut!!!. .Yes, I do believe in freedom of speech, but every thing that comes out of your trap is negative. So do us hard working pilots a favor "get on the phone with your budy, the GOV and try to be proactive for a change".

[Perf Init]

"Today", 26Jan2002 at 2130Z Atlas Air Council 072 MEC unanimously agreed to recommend to the membership that the T/A be ratified.

Next step, membership vote.. . <img src="rolleyes.gif" border="0">

[Huck]

Details, please!

[Donkey Duke]

You're right, 411A always is negative. Jealousy. .sucks! Can't you be happy for other people 411A?

Thanks. Donkey Duke <img src="cool.gif" border="0"> <img src="cool.gif" border="0">

[Po Boy]

It appears that this agreement will not be approved! That is the sentiment expressed by most of the crewmembers, who have already seen this contract.

<img src="confused.gif" border="0">

[411A]

Really not surprised...did they actually expect big bucks from the Lorenzo types in Atlas management?. .Next it will be talk of strike action, no doubt.. . <img src="rolleyes.gif" border="0">

[Po Boy]

Thursday January 31, 2:16 pm Eastern Time. .Press Release. .SOURCE: Atlas Air. .Atlas Air Worldwide Holdings Reports Fourth Quarter and Full Year Results. .PURCHASE, N.Y.--(BUSINESS WIRE)--Jan. 31, 2002--Atlas Air Worldwide Holdings, Inc. (NYSE:CGO - news; "AAWH'') today reported a fourth quarter loss of $8.1 million, or $0.21 per share, which included the following non-recurring items:

$44.9 million ($28.3 million after tax, or $0.74 per share) in aircraft impairment charges. .$24.7 million ($15.5 million after tax, or $0.41 per share) in federal payments under the Federal Air Transportation and Safety Stabilization Act. .$8.0 million, or $0.21 per share, in additional expense related to the newly consolidated corporate full year tax provision. . .Excluding all of the above items, net profit would have been $12.7 million, or $0.33 per share. Including the $10.1 million in federal aid that was previously announced to be included in the quarter, the AAWH net profit would have been $19.1 million, or $ 0.50 per share, compared to the analyst consensus of $0.30 per share. The comparable result for the fourth quarter of 2000 was a net profit of $31.2 million or $0.81 per share.

The $44.9 million in aircraft impairment charges relates to the six B747-200 aircraft that Atlas had previously parked and represents the estimated decline in fair market values experienced as a result of the September 11 terrorist attack.

The $24.7 million in U.S. government grants represents 85% of Atlas's total claim, in accordance with federal guidance in this regard. This amount includes the initial $10.1 million grant amount that the company previously announced would be recognized in the fourth quarter.

"After adjusting for the quarter's unusual items, it is apparent that both Atlas and Polar performed well, particularly in light of the even more difficult market conditions that have existed since September 11th,'' said Richard Shuyler, Chief Executive Officer of Atlas Air Worldwide Holdings, Inc. "This is attributable to the naturally stronger seasonality of the fourth quarter, and to the high level of military flying undertaken by both companies in support of the United States' war on terrorism. We were particularly pleased with Polar's positive contribution to our earnings, as it served to confirm our belief in the long-term benefit to our shareholders to be derived from this strategic acquisition.''

Total operating revenues for the fourth quarter, including Polar revenues since November 1, 2001, increased by 27% to $283.8 million from $223.7 million in the comparable quarter of 2000. Total block hours of 37,488 reflect an 18% decline at Atlas Air, offset by the inclusion of Polar hours since November 1st.

Total operating costs increased to $265.1 million from $154.5 million in 2000's comparable period, reflecting the inclusion of Polar's operating costs from the November 1st acquisition date, and the above-noted $44.9 million impairment charge, which was partially offset by the government grant. As well, a greater degree of all-inclusive charters at both Atlas and Polar, particularly for the US military, had the effect of increasing operating expenses.

Consolidated earnings before interest, taxes, depreciation and aircraft rentals (EBITDAR), a measure of pre-leverage cash flow, totaled $79.7 million for the quarter.

"Our strong, year-end cash and investment balance of $350 million is particularly impressive as it reflects payments made in the fourth quarter for the acquisition of Polar as well as certain debt prepayments made at the close of the year. The resulting cash level, which represents close to 50% of our full-year 2001 revenues, will help ensure a healthy financial position as we go forward into 2002,'' said Shuyler.

For the twelve months ended December 31, 2001, operating revenues totaled $763.8 million versus $790.5 million for full year 2000. The full year loss, including a number of unusual and non-recurring items, was $62.9 million versus $85.3 million in net income for the prior year.

"We continue to make efforts in all areas to position us to emerge even stronger when market conditions improve,'' continued Shuyler. "Our ongoing focus on cost savings was reinforced this past quarter, as intense efforts commenced between teams from both Atlas Air and Polar that have been charged with identifying and implementing benefits associated with the common ownership by Atlas Air Worldwide Holdings.

"As 2002 progresses,'' Shuyler said, "we expect to begin to see the positive impact of many of the initiatives we undertook last year. While earnings comparisons will continue to be very difficult through at least the first half of this year, we believe the Atlas group will be well positioned when economic conditions here in the U.S. and around the world begin to improve. In addition, Polar will add an important new dimension to our product lines, giving us access to both markets and customers previously unavailable to us. Also, its significant role in the ongoing U.S. military effort will serve as a substantial additional source of revenue for the foreseeable future.

"At the same time, the unique global network being created under Atlas is one of the most exciting developments in the company's history,'' noted Shuyler. "With an expanded product offering that includes such innovations as fractional ACMI flying, Atlas is leading the way in making a truly globe-spanning, full-service air cargo network available to the world's airlines with preferred access to the world's most important air freight markets. The response to this effort has already been positive, and we look forward to announcing further developments in this area during the course of this year.

"As a result, we enter 2002 with confidence,'' Shuyler concluded. "While we have no illusions as to the difficult nature of the year ahead of us and, indeed, have only modest expectations in that regard, we believe that the company is well-positioned to meet the challenges of the current environment. We will certainly be aided in that regard by the tentative contract agreement reached last week with our Atlas crewmembers, and I thank them for the continued support they have provided to Atlas, especially over these past few months. With their loyal support, and that of all the members of our corporate family, we look forward to an even stronger Atlas Air Worldwide Holdings with the restoration of a healthier world economy.''

Atlas Air Worldwide Holdings, Inc. ("AAWH'') is the parent company of Atlas Air, Inc. ("Atlas''), and of Polar Air Cargo ("Polar''). Atlas Air offers its customers a complete line of freighter services, specializing in ACMI contracts, with its fleet of B747 aircraft. These contracts include the provision by Atlas Air of the Aircraft, Crew, Maintenance and Insurance for some of the world's leading international carriers. Polar Air Cargo's fleet of Boeing 747 freighter aircraft specialize in time-definite, cost-effective airport-to-airport scheduled airfreight service. Polar and Atlas Air are operated as separate subsidiaries of the parent company.

[Roadtrip]

Does the Atlas TA look a lot like the Polar contract?? Now the Atlas holding company has two domestic groups to pit against each other, as well as an overseas alter ego company. What's the proposed scope provisions??

[ 31 January 2002: Message edited by: Roadtrip ]</p>

[Blue & White]

Hey guys,. .Post some details on the new T/A. As an ex-Atlas pilot, just wanted to see what was gained in Pay and Scope.

[ironbutt57]

Fightson....you seem to have missed the point of 411A's post..stating that quite often the mec screws it's own rank and file members, and negotiates agreements contrary to the wishes of the rank and file members....as appears to be the case here....so rtfp carefully next time <img src="rolleyes.gif" border="0"> <img src="rolleyes.gif" border="0">

[dallas dude]

For what it's worth, if the Atlas contract and pilots just chase the money and fail to include a scope clause they're wasting an opportunity to protect their careers.

Read between the lines of the following statement from Richard Schuyler....

"At the same time, the unique global network being created under Atlas is one of the most exciting developments in the company's history,'' noted Shuyler. "With an expanded product offering that includes such innovations as fractional ACMI flying, Atlas is leading the way in making a truly globe-spanning, full-service air cargo network available to the world's airlines with preferred access to the world's most important air freight markets. The response to this effort has already been positive, and we look forward to announcing further developments in this area during the course of this year.

Expect more outsourcing (and internal group infighting) to follow.

Cheers,

[ironbutt57]

sure looks that way don't it dallas dude, that amussen fellow sure is touting the contract on the alpo page though...maybe 411A has a point..no scope clause no deal should be the motto

[Ignition Override]

Come on folks, ALPA has made quite a number of mistakes, but unless a better union can be created, how will it help negotiations at any carrier if line pilots now were to decide to fragment into little APA or FEDEX-type associations?

But then, there would be little or no national bargaining strength whatsoever, as has been the case at FEDEX with their nice little "white-collar" union over there on Democrat Blvd. When your association has little unity, guys like good old Fred have you by the b***s. The mantra is/was "People, Service, Profit"...the famous "PSP"...but UPS pilots somehow have a much better contract.

Against the real Lorenzos/Icahns out there, you have to bargain from some position of strength, and lobby Congress, as the airline mgmt union, the Air Transport Association, has done for many years.

[ironbutt57]

Tell to the Emery pilots......... <img src="eek.gif" border="0"> <img src="confused.gif" border="0"> <img src="frown.gif" border="0">