Atlas Air Takes Delivery of Boeing 747-400 Freighter.

SEATTLE--(BUSINESS WIRE)--July 28, 1998--Atlas Air Inc. (NYSE:CGO) took delivery today of the first of 10 new 747-400 GE-powered Boeing freighter aircraft.

Four additional freighters will be delivered in 1998, four in 1999, and one in 2000. The company also has options to purchase four 747-400s in 2000 with six additional options available thereafter.

Two of these aircraft already have been committed to long-term leases, one with British Airways and the other with Cargolux. The company anticipates announcing additional contracts in the near future.

"This represents a significant milestone in the Company's history," said Michael A. Chowdry, chairman, chief executive officer and president of Atlas Air Inc. "To date, our growth has been fueled by 747-200s, and that aircraft will continue to be a mainstay of our fleet. However, as the supply of reliable Stage 3 qualified 747-200 aircraft diminishes and as Stage 3 noise rules are fully implemented, we will be positioned with the largest fleet of the most economical and capable heavy lift aircraft in the world, the 747-400."

When Stage 3 noise rules go fully into effect at the end of 1999, older aircraft that do not meet the new criteria will be retired from service. The resulting reduced freight capacity presents significant opportunities for those companies with modern, noise compliant fleets. In addition, long-term cargo growth projections compiled by leading industry analysts at MergeGlobal indicate that by 2006, close to 40% of the world's cargo markets that will require aircraft that carry 100 tons or more would be most efficiently served by the 747-400.

According to John Hayhurst, Vice President The America's Boeing Commercial Airplane Group, the 747-400 offers a number of advantages to customers requiring long-haul freight service. "The 747-400 has the best reliability record of all freighters available today; it has reduced noise impact and meets all current and proposed ICAO emission limits," said Hayhurst. "It also has a 15% greater range than the 747-200 and 1,200 additional cubic feet of cargo volume," he said.

Atlas and its customers also will benefit from a number of operational efficiencies of the 747-400. It offers an improved cargo handling system and can be operated with two crew members instead of three. It also is fuel-efficient, which will keep expenses down for Atlas Air's customers.

The 747-400 fleet will be maintained on a 10-year fixed price agreement with Lufthansa Technik. This allows Atlas to lock in its maintenance costs as it has done with its 747-200 fleet.

Atlas Air is a United States certificated air carrier that operates a fleet of 747 freighters under long-term ACMI contracts. These contracts include the provision by Atlas of Aircraft, Crew, Maintenance and Insurance for some of the world's leading air carriers, including Alitalia, British Airways, Cargolux, China Airlines, Emirates, Fast Air, KLM, LAS, SAS and Thai International Airways, serving a total of 62 cities in 38 countries.

    CONTACT: Atlas Air
              Peggy Mackinnon, 303/696-9471