Atlas Air, DHL terminate Polar Air Cargo joint venture
Polar Air Cargo has ceased operating after Atlas Air and DHL Express determined the joint venture was no longer useful. The post Atlas Air, DHL terminate Polar Air Cargo joint venture appeared first on FreightWaves.
Atlas Air and DHL Express will disband their Polar Air Cargo joint venture after 18 years. Atlas will continue to provide air transport service for its long-time commercial partner under traditional vendor arrangements, FreightWaves has confirmed.
Atlas Air is the world’s largest operator of Boeing 747 freighter aircraft. The decision to exit the Polar Air Cargo venture is consistent with Atlas Air’s new strategic focus of diversifying its customer base and concentrating on high-margin, long-haul flying.
“As we considered the evolution of our respective companies, Atlas and DHL have mutually decided that the joint venture no longer aligns with the strategic direction of either shareholder company. This decision is very much a part of our continued transformation and is in full alignment with our One Atlas Strategy,” Atlas Air said in a statement provided to FreightWaves.
Polar Air Cargo is a provider of scheduled express service and Atlas Air operates the aircraft. Most of the space is reserved for DHL, which determines the flight network. Atlas markets the rest of the capacity to freight forwarders.
New York-based Atlas Air said some operations and staff will transfer to Atlas and the others to DHL. Atlas will continue to hold Polar’s air operating certificate. No timetable for Polar’s shutdown was given, but flight tracking site Flightradar24 and other databases list no aircraft in Polar’s fleet and no recent flight activity.
Atlas Air, which operates or leases 121 Boeing aircraft of various types, will take control of four Boeing 747-8 freighters currently in service for DHL through Polar and redeploy them to other Atlas customers under long-term contracts for dedicated transport service. It will also continue as a contract carrier within DHL Express’ global air network.
DHL will take back two Boeing 777 cargo jets it contributed to the joint venture, with Atlas providing the crews, maintenance and insurance to fly them.
Last year, Polar Air Cargo had eight freighters in its fleet, according to aviation databases.
DHL Express provided a similar statement about the break up of Polar Air Cargo and the continuing partnership with Atlas Air.
Trade publication Cargo Facts broke the news Friday afternoon that Atlas and DHL were folding up their joint venture.
Change of direction
With new ownership behind it, Atlas Air is changing from an airline hired by other entities that pay a set rate for flight time and for guaranteed cargo space. Instead, it wants to have a direct selling relationship with customers.
Last summer, Atlas Air and Amazon ended their relationship under which Atlas provided crews for eight Boeing 737-800 narrowbody converted freighters and 17 Boeing 767-300 medium widebodies. Amazon placed the 767s with ABX Air and is in the process of transferring the 737-800s to existing partner Sun Country Airlines.
Atlas Air CEO Michael Steen said in an interview last year that Atlas Air would reallocate resources to intercontinental operations, where the potential for profits is greater.
The carrier added Chinese e-commerce platforms Shein and Temu as customers in 2024 and has aggressively pursued e-commerce business in the past couple of years.
It’s also possible that Atlas wanted to distance itself from the fraud scandal that recently engulfed Polar Air. Four former executives were sentenced last year to prison for accepting millions of dollars in kickbacks from co-conspirators who owned or operated companies that provided services to Polar Air Cargo or were customers, in exchange for ensuring the airline gave them favorable business deals.
On Wednesday, Atlas Air signed a statement of intent to work closely with Worldwide Flight Services, a global airport ground handling agent owned by Singapore-based SATS Ltd., on developing an integrated ground and cargo handling model to address the unique demands of e-commerce and accommodate rising volumes of other high-value shipments. The companies said they will also collaborate on development of digital and automation solutions to provide expanded track-and-trace capability for cargo moving through their networks, as well as reducing carbon emissions.
WFS provides warehouse, freighter ramp and crew transport services for Atlas at eight major U.S. airports. The new agreement expands cooperation in Singapore and Riyadh, Saudi Arabia.
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The post Atlas Air, DHL terminate Polar Air Cargo joint venture appeared first on FreightWaves.
