Air Transport

Deutsche Post World Net-owned logistics firm DHL has signed a letter of intent to acquire a 49% equity interest in Atlas Air Worldwide unit Polar Air Cargo. The deal was announced by both sides this morning.

As part of a strategic partnership agreement, DHL has agreed to pay $150 million for the 49% stake in New York-based Polar, including a 25% voting interest.

The deal also includes a 20-year commercial capacity agreement giving DHL access to lift capacity from Polar’s current fleet of six Boeing 747-400 freighters, plus additional available ACMI aircraft from Atlas Air.

Atlas Air values the potential revenues from the deal at more than $3.5 billion over the course of the capacity agreement.

DHL says the deal will significantly improve service to DHL Express customers shipping goods between the USA and Asia by securing long-term access to greater air capacity on Trans-Pacific air routes. It adds Polar will continue to operate as an independent company and there will be no integration with DHL or any of its units.

The partners hopes to conclude the deal late this year or early in 2007.

The full text announcement of Atlas Air's announcement is here.

And here is the DHL announcement.