Atlas Air to launch US troop plane service this month

ATLAS Air has received approval from the US Department of Defence to begin providing passenger charter service for US military personnel in May for the Air Mobility Command (AMC) using a Boeing 747-400 passenger aircraft acquired under an operating lease.


The company had previously provided military cargo charter services, a statement said. "AMC passenger service is an exciting expansion of our business," said William Flynn, president and chief executive officer of parent company Atlas Air Worldwide. "Our entry into passenger service for the US military leverages the experience of our long-standing service in AMC cargo operations, our knowledge of the areas of operation and our success in providing premium, private-charter, passenger CMI operations for SonAir. These created a low-risk, low-cost entry opportunity for us."


Mr Flynn continued, "We expect modest levels of military-passenger flying in 2011, which will increase in 2012. We anticipate a moderate earnings impact this year considering the hours of activity and the start-up costs we have incurred since January. Each hour we fly is an hour of growth for us and is part of our strategy to mitigate any reduction in AMC cargo demand.


"As a large percentage of flying is entitlement driven, we will size our fleet and operations to meet anticipated demand. Since approximately 95 per cent of US troops move via commercial air carriers, there should be a good level of sustained passenger demand. We foresee meaningful earnings growth from AMC passenger operations in 2012 and beyond."


Atlas has been a longstanding participant in the Civil Reserve Air Fleet and contractor to AMC for air cargo service. It said the airline first began outsourced charter commercial passenger operations in June 2010, with SonAir flying three dedicated weekly flights between Houston and Angola to serve oil industry executives working on projects in West Africa. SonAir is a subsidiary of Angola's National Petroleum Co.
(Source:http://www.schednet.com)