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Aviation History
2000
2000 - 0587.PDF
PERSONALITY | WINNER Michael Chowdry, chairman, chief executive and president of Atlas Air officer When Michael Chowdry launched Atlas Air in April 1992 he did so with a single Boeing 747-200 freighter and just one contract with China Airlines. Today Golden, Colorado-based Atlas Air is a worldwide cargo carrier operating the largest 747F fleet in the world on long-term contracts providing vital cargo services for major international airlines. Atlas Air is the only pure air cargo outsourcer and the largest aircraft, crew, maintenance and insurance (ACMI) carrier in the freight service business. The company makes its money from fixed rate, long-term contracts, whereby Atlas AUj provides the ACMI to airline clients, with the airlines paying all of the other operating expenses including fuel, airport fees and services and cargo insur ance. One aircraft is dedicated to each customer, with the client guaranteeing a minimum level ot usage. Atlas Air's fleet today comprises 23 747-200Fs and seven 747- 400Fs, which currently operate to 101 cities and 46 countries. Past and present clients include British Airways (BA), China Airlines, FedEx, Korean Air, Cathay Pacific, Alitalia, Cargolux, Emirates, El Al, Iberia, Scandinavian Airlines System (SAS) and Thai International Airways. Chowdry's achievement in creating the world's largest operator of 747 freighters and the third largest cargo carrier operating from a unique business model is even more impressive when you con sider the airline leader's background. Chowdry emigrated to the* USA from his native Pakistan in the mid-1970s. It was in the USA where his interest in the airline business first developed. He learned to fly and his first job in the industry involved flying crop dusters. His early experience of aircraft sales was selling Piper air craft to pay for his college tuition. By the early 1980s he was buy ing and selling landing and take-off rights at constrained major airports. Chowdry then founded the first Colorado commuter airline to have a United Airlines partnership. One of his early major aircraft deals involved the purchase of seven Boeing 727s from Frontier Airlines and their onward sale to all-cargo operator Flying Tigers which was later swallowed by FedEx. That transaction provided Chowdry with the capital to start Aeronautics Leasing (ALI) in 1984. ALI leased passenger aircraft to airlines worldwide, with customers including PanAm, BA, TWA, Continental and SAS. It was the collapse of PanAm, which leased a 747-200 from ALI, in 1992 that really spurred Cowdry to form Atlas Air. At the time, a deep world recession had taken hold, airlines were suffer ing huge losses and ALI was having difficulties placing its passen ger aircraft. As a result, Chowdry converted a passenger 747 to cargo configuration. China Airlines required a 747 freighter, but was not willing to operate the aircraft itself, so Chowdry formed Atlas Air offering freighters on an ACMI basis. The company has grown consistently in terms of fleet, customers and revenue ever since. Last year was a record one for Atlas Air. Revenues and operat ing income were at an all-time high, with revenues rising 51% from a year earlier to S637.1 million, and operating income up 38% to $187.5 million. Net income climbed to $61.3 million, up 33% from the previous year. Because Atlas Air's customers pay for the fuel, Atlas has virtually no fuel price exposure, unlike other air lines, and its business is centred exclusively on the fast-growing international heavy air freight sector, which saw strong growth throughout 1999. During the year, the operator expanded its customer base by five airlines and placed into service four new 747-400s. Last year Atlas Air exercised options for the firm delivery of two 747-4()OFs for entry into service this year. In addition, a 747- 200F was placed with Lan Chile under an ACMI contract, its con tract with Emirates was renewed, two long-term 747-200F agree ments were signed with Air France, a short-term contract was signed with Cathay Pacific, two long-term agreements with China Airlines, a long-term 747-400F deal was secured with Korean Airlines and Malaysian Airlines became a new customer, confirm ing a four-aircraft contract. The airline is looking ahead to a promising 2000. A further three 747-400s will be added to the fleet this year and already the operator has secured a new contract from China Southern. As a result of the agreements signed over the last few months, approxi mately 95% of the company's projected block hour production for the year is already under contract. Chowdry's achievements were recognised by a panel of inde pendent judges drawn from various industries last year when he was selected as the 1999 Entrepreneur of the Year by Ernst & Young in the USA. The Aerospace Industry Awards panel of judges felt that Chowdry has done something "totally different" for the air cargo industry with the ACMI concept. It means that an operator can use an Atlas Air freighter as if it was the customer's aircraft, but without any potential problems which operators face with their own aircraft. FLIGHT INTERNATIONAL AEROSPACE INDUSTRY AWARDS 2000 *
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