Atlas Air Worldwide and DHL have announced they will close their joint venture Polar Air Cargo after 17 years of operations.
The companies have decided that Polar Air Cargo is no longer a strategic business interest, according to an Atlas Air Worldwide spokesperson, though the precise date of closure has not been confirmed.
The spokesperson commented that "Atlas and DHL have mutually decided that the joint venture no longer aligns with the strategic direction of either shareholder company".
Polar’s fleet includes four Boeing 747-8Fs, plus two Boeing 777Fs, down from four 777Fs last year.
Following the closure, Atlas will continue to utilise some of Polar's freighters for DHL Express flights, while the rest of the freighters will be redeployed by Atlas.
The spokesperson added: "We expect certain operations and positions to shift to Atlas and others to DHL, and will ensure continued outstanding service to Polar’s strong roster of customers. Atlas will continue to hold the Polar certificate.
"We are very pleased to extend our valuable partnership with DHL Express, and continue as a carrier within their global aviation network. Atlas will continue to provide DHL outsourced CMI service on the two 777F aircraft currently operated by Polar, on an extended term.
"Atlas is redeploying the four 747-8F aircraft currently in service for DHL through Polar with other Atlas customers under long-term agreements."
Atlas also noted that the decision to close Polar is in alignment with its 'One Atlas Strategy'.
The strategy includes working for direct shippers, major e-commerce platforms, leading express carriers, airlines, freight forwarders, and ocean shipping companies.
"Our 'One Atlas' strategy is the culmination of a focused strategic transformation and diversification model," the freighter operator said. "With an unmatched global footprint, scalable network and the best team in the industry, Atlas is strengthening our position as the world leader in outsourced aviation logistics."
Established in 2007, White Plains, New York-headquartered Polar Air Cargo is 51% owned by Atlas Air Worldwide Holdings and 49% owned by DHL Express.
As of May last year, as well as flights to and from its US Cincinnati/Northern Kentucky (CVG) and Los Angeles (LAX) hubs, airports served by Polar in Asia included Shanghai Pudong (PVG), Sunan Shuofang (WUX), Shenzhen Bao’an (SZX) and Guangzhou Baiyun (CAN) in China; Chubu Centrair (NGO) and Narita (NRT) in Japan; Incheon (ICN) in South Korea; Singapore Changi (SIN); and Taiwan Taoyuan (TPE).
Hong Kong (HKG) was also part of Polar’s intra-Asia network, while APAC interline connections extended the network further in Asia. In Europe, Polar also called at Leipzig/Halle (LEJ) in Germany.
The airline has typically served a wide range of verticals, including automotive, machinery parts, perishables and dangerous goods.
Polar went through a challenging period when former staff were charged with fraud, however the airline now has completely new management.
According to the Cargo Facts report, the two cargo airlines have mutually decided to end their joint venture due to shifting strategic priorities.
Under the joint venture deal, Polar Air Cargo provides scheduled freight services, while Atlas Air operates the aircraft. Most of the cargo space is allocated to DHL Express, which also manages the flight network. Atlas Air markets the remaining capacity to freight forwarders.
Now, with plans to dissolve the joint venture, Atlas Air told FreightWaves that some Polar Air Cargo operations and staff will transition to Atlas Air, while others will move to DHL. However, Atlas will retain Polar’s air operating certificate. Commenting on the news, an Atlas Air spokesperson told Simple Flying:
“As we considered the evolution of our respective companies, Atlas and DHL have mutually decided that the joint venture no longer aligns with the strategic direction of either shareholder company. This decision is very much a part of our continued transformation and is in full alignment with our One Atlas Strategy.”
According to ch-aviation fleet data, Polar Air Cargo currently operates a total of six freighters at an average age of 12.8 years. The fleet comprises four Boeing 747-8Fs and two Boeing 777-200 widebody freighters. The Atlas Air spokesperson added:
"We are very pleased to extend our valuable partnership with DHL Express, and continue as a carrier within their global aviation network. Atlas will continue to provide DHL outsourced CMI service on the two 777F aircraft currently operated by Polar, on an extended term. Atlas is redeploying the four 747-8F aircraft currently in service for DHL through Polar with other Atlas customers under long-term agreements."
It is worth noting that DHL Express still holds a 49% stake in Polar Air Cargo, giving it access to capacity on Polar’s freighter services. This partnership combines DHL’s strong presence in Asia with Polar’s exclusive access to US-Asia routes and logistics support. Meanwhile, Atlas Air retains a controlling 51% stake in Polar Air.
Atlas Air and DHL fleets
Headquartered at John F. Kennedy International Airport (JFK) in New York, Atlas Air serves nearly 30 countries across the world. The cargo airline currently operates a fleet of 90 aircraft at an average age of 24.7 years, as per ch-aviation. The fleet comprises 48 Boeing 747-400s, 14 Boeing 747-8Fs, 13 Boeing 767-300ERs, eight Boeing 777-200Fs, and seven Boeing 737-800 freighters.
Interestingly, Atlas has the honor of operating the last Boeing 747 built at the final assembly line (FAL) in Everett, Washington. Registered as N863GT, the last 747 is a 747-8F, which rolled off the production line on December 6, 2022. The plane was delivered to Atlas Air on January 31, 2023. By: Rebecca Jeffery, Air Cargo News, CIFFA, Vyte Klisauskaite, MSN