DHL is to pay $150 million cash for a 49% equity stake in Polar Air Cargo, the Atlas Airsubsidiary, a key operator on Trans-Pacific routes.
The proposed deal includes a 20-year arrangement ensuring DHL access to Polar’s aircraftcapacity, while providing Atlas with a potential revenue stream of over $3.5 billion for theduration of the agreement, the companies said in a statement. DHL will obtain a 25% voting interestin the scheduled service business.
“This key strategic partnership ensures we can meet the rapidly rising demand for air cargocapacities between the U.S. and Asian destinations,” said DHL Express CEO John Mullen.
“The Trans-Pacific route is one of the most rapidly growing and competitive trade lanesglobally and adding capacity through an even stronger presence in the U.S. is a crucial factor insupporting our dynamic Asian business.”
Under the terms of the arrangement, DHL would have access to lift capacity through Polar’scurrent fleet of six Boeing 747-400 freighters, plus access to additional available ACMI aircraftfrom Atlas.
The transaction, which is subject to the completion of documentation, is targeted to takeplace in late 2006 or early 2007 and will be subject to the receipt of all applicable regulatoryand other third-party approvals and other customary closing conditions, the statement said.
William Flynn, Atlas Air president and CEO, enthused: “This is a landmark transaction andexciting partnership for our company. Our strategy has been to maximize the value and potential ofour scheduled-service business, and this transaction accomplishes that goal.
“DHL is a pre-eminent express service provider and the world’s largest buyer of third-partyairlift capacity.
