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News

Supply Chain Contract for Supporting Dreamliner Manufacturing


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Atlas Air
: 08 March, 2010  (Application Story)
Boeing chooses Atlas Air for supplying logistics support for the production of the Boeing 787 dreamliner aircraft starting later this year using the company’s fleet of 747-400 cargo aircraft for transporting major assemblies
Boeing has selected Atlas Air to provide key supply-chain support for the production of Boeing’s all-new commercial jetliner, the 787 Dreamliner.


Beginning toward the latter part of 2010, Atlas Air will operate Boeing’s Dreamlifter fleet of four 747-400 aircraft that have been modified to transport major assemblies for the 787 Dreamliner from suppliers around the world to Boeing production facilities in the United States.

The parties have structured the nine-year agreement in a manner consistent with the outsourcing business model under which Atlas Air typically operates. Under that model, Atlas Air will receive contractually determined revenues for the operation of the Dreamlifter aircraft, with Boeing assuming responsibility for certain direct costs, including fuel. Under the CMI arrangement, Boeing will provide and maintain ownership of the aircraft assets.

“Atlas Air is very excited to partner with Boeing as it ushers in a new era in air travel with the first all-new jet airplane of the 21st century,” said William Flynn, President and Chief Executive Officer of Atlas Air Worldwide Holdings. “We look forward to working closely with Boeing and to providing world-class Dreamlifter service.

“Our dynamic customer solutions and our ability to integrate with our customers’ operations set us apart from other participants in the aircraft operating solutions market. We believe that our global scope and scale, high-quality service and reliability, cost-effective operations, and premium customer service create a compelling value proposition for our customers.”

Mr Flynn added: “We are well positioned to execute on our growth initiatives and to drive future revenues and earnings. In addition to the expected start-ups of our new CMI service for Boeing in the second half of this year and for SonAir in the second quarter, we are focused on introducing our new Boeing 747-8 freighters into service in 2011 and on adjacent dry leasing opportunities in our Titan subsidiary.

“When fully implemented, we expect that the annual contribution per aircraft from our Dreamlifter service will meet or exceed the current average contribution that we achieve in our 747-400 ACMI service.”

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