Atlas Air Cancels Part of their 747-8 Order

Atlas Air has chosen to cancel part of their 747-8 order, by exercising their termination rights.  This cuts their order from 12 to 9.  Atlas expressed their intent to receive three of these aircraft in October and November, and said that they remain committed to the 747-8.

The Atlas 8-K that was filed yesterday (September 21) with the Securities and Exchange Commission explains:

On September 16, 2011, Atlas Air, Inc. (“Atlas”), a wholly-owned subsidiary of Atlas Air Worldwide Holdings, Inc. (“AAWW”), notified The Boeing Company (“Boeing”) of its decision to exercise its right under Purchase Agreement No. 3134, dated as of September 8, 2006, between Atlas and Boeing (the “Agreement”) to terminate such Agreement with respect to the first three 747-8F aircraft scheduled to be delivered to Atlas under the Agreement. Atlas terminated the Agreement with respect to these three aircraft due to lengthy delays in delivery of the aircraft and performance considerations. Nine 747-8F aircraft remain on order under the Agreement, as well as one option and 13 purchase rights.

Just a week ago, on September 16th, Cargolux Airlines decided to to delay taking its first two 747-8s.  They are supposed to be Boeing’s launch customer for the aircraft.  Reports suggest that Cargolux still intends to accept the aircraft.