Atlas Air to Unveil Agreement to Fly Planes for FedEx
GOLDEN, Colo. -- Atlas Air Inc., which provides freight flights for airlines, is expected to announce an agreement today to fly three Boeing 747 jumbo jet cargo planes for Federal Express Corp.</br></br>The outsourcing deal, valued at more than $30 million in annual revenue for Atlas, is believed to be part of FedEx's strategy to restructure operations to reduce reliance on its own pilots. By contracting some international shipping to low-cost Atlas, FedEx risks further rankling its higher-paid pilots during contentious contract negotiations.</br></br>Federal Express, a unit of FDX Corp., Memphis, Tenn., declined to comment.</br></br>Atlas, a six-year-old concern that founder Michael A. Chowdry has built into the world's largest operator of 747 freighters, said service for FedEx would begin in the fourth quarter. Atlas will provide two 747-400 freighters, a 747-200 cargo plane plus crews, maintenance and insurance. The company declined to say how long the FedEx contract would last.</br></br>Last year, Atlas provided two planes for extra seasonal lift to FedEx in the fourth quarter and, in 1996, provided one plane for FedEx.