ATLAS AIR SIGNS AIR CHINA

ATLAS AIR SIGNS AIR CHINA

   Atlas Air said Thursday it has signed a contract with Air China to provide Boeing 747 freighter service, under an aircraft, crew, maintenance and insurance contract.

   Air China, which operates passenger and cargo service with a fleet of 62 airplanes, is the third Chinese airline to enter into an ACMI contract with Atlas Air this year. Atlas has also leased B747 freighters to China Southern and Hong Kong Dragon Airlines.

   “China is clearly the new frontier for air freight in the Asia-Pacific region — and when the country joins the World Trade Organization as expected, it will trigger an even stronger surge in east and westbound trade,” said Michael A. Chowdry, chairman, chief executive officer and president of Atlas Air.

   China air freight grew more than 20 percent in the first four months of 2000 compared with 18.5 percent in the previous 10 years, according to a study by Credit Lyonnais Securities (Asia) Ltd. Air freight demand is expected to grow 60 percent to 2.7 million tons by 2004, from 1.7 million tons in 1999. Chinese goods exported by air, including Hong Kong, will expand 10 percent a year for the next five years, while imports are expected to grow 11 percent, according to the study.