Atlas Air And Volga-Dnepr Airlines Strike An Alliance To Provide Joint Services For The U.S. Government.

Business Editors

PURCHASE, N.Y.--(BUSINESS WIRE)--May 31, 2001

Atlas Air, Inc. announced today that it has signed an agreement with the world's largest provider of outsize cargo capacity, Volga-Dnepr Airlines, based in Ulyanovsk, Russia, to act as the General Sales Agent (GSA) to U.S. federal agencies for Volga-Dnepr's An-124-100 services.

An-124-100 aircraft can carry outsized cargo such as oilrigs, launch vehicles, satellites, chemical reactors, heavy machinery, etc.

"Through this relationship, Atlas Air and Volga-Dnepr Airlines will be able to provide U.S. federal agencies with a viable alternative for the prompt and efficient transport of their outsized cargo," said Richard Shuyler, chief executive officer of Atlas Air. "Additionally, this is the first step in what we hope will be an expanded and long-term relationship with Volga-Dnepr."

"We are delighted with the development of the cooperation between Volga-Dnepr Airlines and Atlas Air," said Alexey Isaikin, General Director for Volga-Dnepr Airlines. "I believe that our agreement is just a first step on the way to a robust business relationship and will further develop our wholly owned North America sales center - Volga-Dnepr Unique Air Cargo, Inc. - in the best interest of our customers."

Currently, 5 percent of Atlas Air revenues are derived from its established charter business. The company has provided charter operations for U.S. federal agencies in the past with its 747 aircraft. Through its relationship with Volga-Dnepr Airlines, Atlas Air will now be able to offer oversized capacity for the U.S. government's transportation needs.

While the overall cargo market is projected to grow at an average annual rate of 6 to 9 percent, market forecasts project an annual growth rate between 10 to12 percent for outsized air cargo. Atlas Air is noted for taking a leadership position in responding to market trends, as it did when it was among the first to purchase 747-400 cargo aircraft.

Volga-Dnepr Airlines is a Russian certificated air carrier that operates an ever growing fleet of An-124-100 aircraft and serves more than 60 percent of the world oversized freight market. The company focuses on airlifting high-tech loads and moving specialized cargo to remote points not served by other air carriers. The An-124-100 can carry a 120-tonne payload and has a cargo hold of 1,100 cubic meters. Licensed in the U.S. as a foreign air carrier, Volga-Dnepr-Airlines has for many years operated in the U.S. market of outsized air transportation.

Atlas Air, Inc. is a wholly owned subsidiary of Atlas Air Worldwide Holdings, Inc. (NYSE:CGO) and is a United States certificated air carrier that operates a fleet of 747 freighters under ACMI contracts. These contracts include the provision of Aircraft, Crew, Maintenance and Insurance for some of the world's leading international carriers.