Why is Atlas Air not doing too well

[shon7]

For those of you familiar with Atlas Air and their operation - whats ther reason behind their downfall? Company has more than 50% of its value on the stock market. I was under the impression they got long term contracts from Airlines - and a steady revenue stream accordingly?

 

[G4G5]

The CEO and founder, Michael Chowdry died in an airplane accident at approx the same time the economy turned south. When you combine that with the excess capacity and the depressed revenues, you have your answer.

 

[Midnight Mike]

In the past Atlas would wet lease both the crews and the aircraft, when the going is good
wet lease can be very profitable. But when the economy is in the **CENSORED****CENSORED****CENSORED****CENSORED**ter, the wet lease contracts
can be cancelled and Atlas is stuck with both the airplane and crew that is not moving. I was in
in the Atlas office once when a whole contract was cancelled I believe for China air, can be very scary.

Probably the reason why Polar Air Cargo is doing so good financially, they fly their own routes and tons
of military charters, easier to control.

Wouldn't be too surprised when this Atlas/Polar merger finishes up, if Polar is the name that survives.

Mike

 

[AlbieF15]

Don't have a link, but aviation week reported that Atlas defaulted on a 747 payment last month. That didn't sound good...