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Infratil Industrial Action at Polar Air Cargo

21 Sep 2005

Atlas Air Worldwide Holdings, Inc. (AAWW) announced on September 16, 2005 that its negotiations with the Air Line Pilots Association (ALPA) for a new Collective Bargaining Agreement covering the Crewmembers employed by its subsidiary Polar Air Cargo, Inc. (Polar) have been unsuccessful, and that ALPA has elected to call a strike at Polar.

Polar Air Cargo is a significant customer of Glasgow Prestwick Airport with four scheduled weekly freight services accounting for between £15,000 and £20,000 of gross revenue per week depending on actual loads. The final impact of any action may be mitigated by the fact that some freight movements may be able to be delayed until services recommence and other freight may move to other Glasgow Prestwick customers that serve the US market (Cargolux, Air France and Panalpina). Only limited cost savings are available to Glasgow Prestwick Airport in the short term.

It is understood that discussions between the company and union are continuing, but there is currently no clear indication of when a resolution may be reached. It is understood that resumption of normal services would take 48-72 hours following a resolution.

Atlas Air, another subsidiary of AAWW is also currently a significant customer of Glasgow Prestwick. Atlas Air uses the airport for technical stops as part of its military charter business and when its aircraft are leased for other
charter purposes. This business is unaffected by the Polar Air Cargo dispute.
Further information may be available at www.polaraircargo.com
, www.atlasair.com and/or www.alpa.org

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