Document:

EXHIBIT 10.5.3

                                                                  EXECUTION COPY

                              SUBSIDIARIES GUARANTY

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                                    GUARANTY

                            Dated as of July 27, 2004

                                    given by

           CERTAIN SUBSIDIARIES OF ATLAS AIR WORLDWIDE HOLDINGS, INC.

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                                TABLE OF CONTENTS
                                                                            PAGE
                                                                            ----

SECTION 1. GUARANTY .....................................................     1

SECTION 2. GENERAL PROVISIONS RELATING TO THE GUARANTY ..................     2

SECTION 3. COVENANTS OF THE GUARANTORS ..................................     5
      (a)   No Assignment by Guarantor ..................................     5
      (b)   Default Under Loan Documents ................................     6

SECTION 4. REPRESENTATIONS AND WARRANTIES OF THE GUARANTORS .............     6

SECTION 5. MISCELLANEOUS ................................................     6
      (a)   Waivers; Cumulative Effect ..................................     6
      (b)   Amendments; Waivers .........................................     6
      (c)   Severability ................................................     6
      (d)   Counterparts ................................................     6
      (e)   Notices .....................................................     6
      (f)   Headings, References ........................................     7
      (g)   Governing Law ...............................................     7
      (h)   Benefit and Binding Effect ..................................     7
      (i)   Service of Process; Jurisdiction and Waiver .................     7
      (j)   Savings .....................................................     8

Annex A - Address for Notices to Guarantor

Schedule I - Description of Lease Agreement

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                              SUBSIDIARIES GUARANTY

            SUBSIDIARIES  GUARANTY (this  "GUARANTY") dated as of July 27, 2004,
is  given  by  each of the  undersigned  subsidiaries  of  Atlas  Air  Worldwide
Holdings,  Inc. (each a "GUARANTOR" and collectively,  the  "GUARANTORS"),  with
respect  to each and  every  obligation  of the  Lessee  under the  Amended  and
Restated  Lease  Agreement,  dated as of July 27,  2004,  and more  particularly
described on Schedule I hereto (as amended,  modified or supplemented  from time
to time, the "Lease  Agreement") and the other Loan  Documents,  and is given to
and for the benefit of the Lessor, the Agent, and the Lenders (collectively, the
"GUARANTEED BENEFICIARIES" and individually,  a "GUARANTEED  BENEFICIARY").  All
capitalized terms used herein shall,  unless otherwise defined herein,  have the
respective meanings set forth in the Lease Agreement.

                              W I T N E S S E T H:

            WHEREAS,  it is a condition  precedent to the  effectiveness  of the
Lease  Agreement,  that each Guarantor  guarantee the  obligations of the Lessor
under  the  Lease  Agreement  and the  other  Loan  Documents  in  favor  of the
Guaranteed  Beneficiaries  and that  each  Guarantor  shall  have  executed  and
delivered to the Agent this Guaranty;

            WHEREAS,  each  Guarantor is entering into this Guaranty in order to
induce the Agent and each Lender to enter into the Credit Agreement;

            WHEREAS,  each Guarantor will obtain  benefits from Lessee  entering
into the Lease Agreement,  and accordingly,  desires to execute this Guaranty to
satisfy the conditions described in the preceding paragraph;

            NOW,  THEREFORE,  each Guarantor  hereby agrees on behalf of and for
the benefit of the Guaranteed Beneficiaries as follows:

            SECTION 1. GUARANTY.  Each Guarantor does hereby unconditionally and
irrevocably jointly and severally  guarantee,  as primary obligor and not merely
as surety, the following (such obligations being the "GUARANTEED OBLIGATIONS"):

            (a) to each  Guaranteed  Beneficiary,  the full and  prompt  payment
      when, where and as due, of each and every payment obligation of the Lessee
      to each such  Guaranteed  Beneficiary  under the Lease  Agreement and each
      other Loan Document, including, without limitation, Rent; and

            (b) to each Guaranteed  Beneficiary entitled thereto under the terms
      of any Loan Document,  the full and timely  performance  and observance by
      the Lessee of each and all other covenants and agreements not described in
      clause (a) above  required to be performed or observed by the Lessee under
      such Loan Document.

            Without  limiting the generality of the foregoing,  each Guarantor's
liability  hereunder shall extend to all obligations that constitute part of the
Guaranteed  Obligations and would be owed by the Lessee under the Loan Documents
but for the fact that they are

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unenforceable or not allowable due to the existence of a bankruptcy,  suspension
of payments, reorganization or similar proceeding involving the Lessee.

             SECTION 2. GENERAL PROVISIONS RELATING TO THE GUARANTY

            (a) Each and every  default  in any  payment or  performance  of any
obligation  of the Lessee under any Loan Document to which the Lessee is a party
shall give rise to a separate claim and cause of action  hereunder to the extent
that each such  default  by the Lessee  would  give rise to a separate  claim or
cause of action under the applicable Loan Document, and separate claims or suits
may be made and  brought,  as the case may be,  hereunder  as each such  default
occurs.

            (b) This Guaranty shall be a continuing,  absolute,  irrevocable and
unconditional  guaranty of payment and  performance  and not of  collection  and
shall remain in full force and effect until each and all of the  obligations  of
the  Lessee  guaranteed   hereunder  shall  have  been  fully  and  indefeasibly
discharged or performed in accordance  with the terms and provisions of the Loan
Documents (and no longer subject to  recoupment,  preference  claims or clawback
under  applicable  bankruptcy,  insolvency or similar laws),  and each Guarantor
shall have fully  discharged  or  performed  all of its  obligations  under this
Guaranty to each Guaranteed Beneficiary.

            (c) This Guaranty and the liability of the  Guarantors  provided for
in Section 1 hereunder shall remain in full force and effect irrespective of:

            (i) the legality,  validity,  regularity or  enforceability,  or the
      absence  of any  thereof,  of any Loan  Document  (or  other  document  or
      agreement) or of any assignment,  amendment,  modification, or termination
      of any Loan Document (or other document or agreement) or any subleasing or
      further  subleasing  of the  Aircraft or Spare  Engines  (or any  interest
      therein or portion  thereof),  and shall in no way be affected or impaired
      by (and no notice to the  Guarantors  shall be required in respect of) any
      compromise, waiver, settlement,  release, renewal, extension,  indulgence,
      amendment,  addition, deletion, change or modification with respect to, or
      release of any security for any of the  obligations  or liabilities of the
      Lessee under,  any Loan Document or any  redelivery,  repossession,  sale,
      transfer or other disposition, surrender or destruction of, or other event
      or  circumstance  with respect to, the  Aircraft or Spare  Engines (or any
      interest therein or portion thereof), in whole or part; or

            (ii) the transfer,  assignment,  subletting,  or mortgaging,  or the
      purported transfer,  assignment,  subletting, or mortgaging, of all or any
      part of the interest of any  Guaranteed  Beneficiary  or the Lessee in the
      Aircraft or Spare Engines (or any interest  therein or portion thereof) in
      accordance with the Loan Documents; or

            (iii)  any  absence  or  defect  or  failure  of  title  or  lack of
      recordation or registration  with respect to any Guaranteed  Beneficiary's
      or the Lessee's interest in the Aircraft or Spare Engines (or any interest
      therein or portion thereof); or

                                      -2-

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            (iv) any  failure  of  delivery  of,  or loss of  perfection  of any
      security  interest  with  respect to, any portion of the Aircraft or Spare
      Engines (or any interest therein or portion thereof); or

            (v) any matter relating to any agreement or approval (or the absence
      thereof) in connection with the Aircraft or Spare Engines (or any interest
      therein or portion thereof); or

            (vi) any failure,  neglect or omission on the part of any Guaranteed
      Beneficiary  or any  other  Person  to give the  Guarantors  notice of the
      occurrence of any Default or Lease Event of Default or Potential  Event of
      Default or Event of Default or to realize upon any collateral  held by any
      Guaranteed Beneficiary or any other Person with respect to any obligations
      or  liabilities  of the  Lessee,  or to provide for any  insurance  on the
      Aircraft or Spare Engines (or any interest therein or portion thereof), or
      to establish  or maintain a security or other  interest in the Aircraft or
      Spare  Engines  (or  any  interest  therein  or  portion  thereof)  or any
      collateral  provided  under any Loan  Document or to establish or maintain
      the priority or perfection of any thereof; or

            (vii) any defect in the compliance with  specifications,  warranties
      or any insurance policy or the condition, design, operation or fitness for
      use of, or any damage to or loss or destruction of, or any interruption or
      cessation  in the use of, the  Aircraft or Spare  Engines (or any interest
      therein or any portion  thereof) by the Lessee or any other Person for any
      reason  whatsoever  (including,   without  limitation,   any  governmental
      prohibition  or  restriction,  condemnation,  requisition,  seizure or any
      other act on the part of any  governmental or military  authority,  or any
      act of God or of the public  enemy)  regardless  of the  duration  thereof
      (even though such duration would otherwise  constitute a frustration under
      any Loan Document), whether or not without fault on the part of the Lessee
      or any other Person; or

            (viii)  any  merger,   consolidation   or  other   restructuring  or
      termination of the corporate structure, reorganization or transaction with
      respect to the Lessee or any  Guarantor  into,  with or in respect of, any
      other  Person or any sale,  lease,  assignment  or  transfer of any of the
      assets of the Lessee or any Guarantor to any other Person; or

            (ix) any disposition by any Guarantor of its interest in the Lessee,
      or any change in the  ownership  of any  shares of  capital  stock of such
      Guarantor or the Lessee,  or any change,  restructuring  or termination of
      the corporate structure or existence of the Lessee; or

            (x) the  imposition  of any Tax or other charge  against the Lessee,
      any Guarantor or any other Person; or

            (xi) any exchange, release or nonperfection, or lapse of perfection,
      of any security for any  Guaranteed  Obligation  or the  acceptance of any
      security therefore; or

            (xii)  any   bankruptcy,   insolvency,   winding  up,   dissolution,
      liquidation,  receivership,  or reorganization of, or similar  proceedings
      affecting,  the Lessee or any  Guarantor  or its  assets or any  resulting
      release or discharge of any of the Guaranteed  Obligations  (except to the
      extent resulting from performance thereof); or

                                      -3-

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            (xiii) any regulatory change or other  governmental  action (whether
      or not adverse); or

            (xiv)  any  partial   payment  or   performance  of  the  Guaranteed
      Obligations  (whether as a result of the  exercise  of any right,  remedy,
      power or privilege  or  otherwise)  that is accepted or received  (except,
      subject to paragraph  (f) of this Section 2, to the extent of such payment
      or performance); or

            (xv)  any  other  occurrence  or  circumstance  whatsoever,  whether
      similar or dissimilar to the foregoing,  whether or not foreseeable,  that
      might  otherwise  constitute a legal or equitable  defense or discharge of
      the  liabilities  of a Guarantor or surety or that might  otherwise  limit
      recourse against such Guarantor.

            The  obligations of each  Guarantor set forth herein  constitute the
full recourse  obligations of each Guarantor  enforceable against it to the full
extent of all its assets and properties.

            (d) The obligation and liability of each Guarantor  hereunder  shall
not be impaired,  diminished,  abated or otherwise  affected (i) by any set-off,
defense or counterclaim  that the Lessee,  any Guarantor or any other Person may
have  or  claim  to  have,  at any  time or from  time to  time,  or (ii) by the
commencement by or against the Lessee,  any Guarantor or any other Person of any
proceedings  under any  bankruptcy  or  insolvency  law or laws  relating to the
relief of debtors, readjustment of indebtedness, reorganizations,  arrangements,
compositions or extension or other similar laws.

            (e) It is the intent and purpose  hereof that each  Guarantor  shall
not be entitled to and does hereby  waive,  to the fullest  extent  permitted by
applicable law, any and all defenses  available to such Guarantor,  sureties and
other secondary parties at law or in equity.  Without limiting the generality of
the  foregoing,  each  Guarantor  hereby  waives  notice of  acceptance  of this
Guaranty  and  of the  nonperformance  by the  Lessee,  diligence,  presentment,
protest,  dishonor,  demand for payment  from the Lessee or any other Person and
notice of  nonpayment  or  failure  to perform on the part of the Lessee and all
other  notices  whatsoever.  The  guaranty  hereunder  is a guaranty of payment,
performance  and  compliance  and not of  collectability  only.  Each  Guarantor
specifically agrees that it shall not be necessary, and such Guarantor shall not
require,  before or as a condition of enforcing the liability of such  Guarantor
under this  Guaranty  or  requiring  payment or  performance  of the  Guaranteed
Obligations by such Guarantor hereunder, or at any time thereafter,  that any of
the  Guaranteed  Beneficiaries  (i) file suit or  proceed  to obtain or assert a
claim for  personal  judgment  against  any  Person  that may be liable  for any
Guaranteed  Obligation;  (ii)  make  any  other  effort  to  obtain  payment  or
performance  of any  Guaranteed  Obligation  from the Lessee or any other Person
that may be liable for such Guaranteed  Obligation;  (iii) foreclose  against or
seek to realize upon any security now or hereafter  existing for such Guaranteed
Obligation;  (iv)  exercise  or assert any other right or remedy to which any of
the  Guaranteed  Beneficiaries  is or may be  entitled  in  connection  with any
Guaranteed Obligation or any security or other guaranty therefore; (v) assert or
file any claim  against the assets of the Lessee or any other Person  liable for
any  Guaranteed  Obligation;  or (vi) join the  Lessee or any other  Person as a
party to any proceeding  for the  enforcement of any provision of this Guaranty.
Without  limiting the foregoing,  it is understood  that repeated and successive
demands may be made and recoveries  may be had hereunder as and when,  from time
to time, a Lease Event of Default shall have occurred and

                                      -4-

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be continuing or a Guaranteed  Obligation shall otherwise arise (in either case,
a "RECOVERY  EVENT"),  and that,  notwithstanding  recovery  hereunder for or in
respect of any such  Recovery  Event,  this  Guaranty  shall remain in force and
effect  and  shall  apply to each and  every  subsequent  Recovery  Event.  Each
Guarantor further agrees that, without limiting the generality of this Guaranty,
if any Recovery  Event shall have occurred and be continuing  and any Guaranteed
Beneficiary  (or any  assignee  thereof) is  prevented  by  applicable  law from
exercising its remedies under any applicable Loan Document for any reason,  such
Guaranteed  Beneficiary  (or any assignee  thereof) shall be entitled to receive
hereunder from such  Guarantor,  upon demand  therefor,  the sums that otherwise
would have been due from the Lessee had such  remedies  been  exercised.  If any
Guarantor  makes any payment or performs any obligation  hereunder in respect of
any of the  obligations  to be performed  by the Lessee,  such  Guarantor  shall
become  subrogated to the extent of such payment or performance to the rights of
the Guaranteed Beneficiary under the relevant agreement to which the Lessee is a
party  against  the  Lessee in respect of such  obligations  and any  collateral
security or guaranty held by or for the benefit of such  Guaranteed  Beneficiary
for the  payment of such  obligations;  PROVIDED,  HOWEVER,  that such rights of
subrogation shall not commence until such time subsequent to the end of the Term
as the  Lessee  or such  Guarantor,  as the case  may be,  shall  have  paid and
performed each and every  Guaranteed  Obligation to each Guaranteed  Beneficiary
and such Guarantor shall have fully performed its obligations hereunder.

            (f) The guaranty  hereunder  shall not be deemed to have  terminated
and shall  continue to be effective  (or if  terminated  for any reason shall be
reinstated, as the case may be), if at any time payment, or any part thereof, of
any of the  obligations  hereunder or under any Loan  Document is rescinded  and
must be (and actually is) returned by any  Guaranteed  Beneficiary to the Person
who  made  the  payment  or on  behalf  of whom the  payment  was made  upon the
insolvency,  bankruptcy or reorganization (or similar event) with respect to the
Lessee,  any  Guarantor  or  otherwise,  all as though such payment had not been
made.

            (g) If any Guarantor  fails to pay any amount  hereunder when due to
any  Guaranteed  Beneficiary,  such  Guarantor  shall  pay  to  such  Guaranteed
Beneficiary  interest,  on  demand,  on  such  amount  at the  appropriate  rate
described in Section 2.2D of the Credit Agreement.

            (h)  Each  Guarantor  further  agrees  to  pay  to  each  Guaranteed
Beneficiary  any and all costs and  expenses,  including  reasonable  legal fees
(which shall include  allocated  costs of internal  counsel) and  disbursements,
incurred  by such party in  connection  with  enforcing  its  rights  under this
Guaranty.

            SECTION  3.  COVENANTS  OF THE  GUARANTORS.  Each  Guarantor  hereby
covenants for the benefit of each Guaranteed Beneficiary as follows:

            (a) NO  ASSIGNMENT  BY  GUARANTOR.  Except  as  expressly  permitted
herein,  each  Guarantor  agrees  that it shall not  assign any of its rights or
obligations  hereunder  without the prior  written  consent of the  Lessor,  the
Agent, and the Requisite  Lenders.  Each Guarantor  acknowledges that the Lessor
intends to mortgage,  grant,  and assign all of the Lessor's right,  title,  and
interest in and to this Guaranty and such Guarantor's  obligations  hereunder to
the Agent, as administrative  agent for and  representative  of the Lenders,  as
security for the Secured

                                      -5-

<PAGE>

Obligations (as defined in the relevant  Aircraft  Chattel  Mortgage),  and each
Guarantor hereby consents to such mortgage, grant, and assignment.

            (b) DEFAULT  UNDER LOAN  DOCUMENTS.  Each  Guarantor  agrees that it
shall not take any action or fail to take any action  that would cause a Default
or Lease  Event of Default  under any Lease or a  Potential  Event of Default or
Event of Default under any of the other Loan Documents.

            SECTION 4.  REPRESENTATIONS  AND WARRANTIES OF THE GUARANTORS.  Each
Guarantor  makes,  for the benefit of each Guaranteed  Beneficiary,  each of the
representations  and warranties made in the Lease Agreement by each Guarantor as
to its assets,  financial  condition,  operations,  organization,  legal status,
business, and the Loan Documents to which it is a party.

            SECTION 5. MISCELLANEOUS.

            (a)  WAIVERS;   CUMULATIVE   EFFECT.  A  waiver  by  any  Guaranteed
Beneficiary  of any right or remedy  hereunder on any one occasion  shall not be
construed as a bar to any right or remedy that such  Guaranteed  Beneficiary (or
any  other  Guaranteed  Beneficiary)  would  otherwise  have  had on any  future
occasion with regard to any  subsequent  breach.  No failure to exercise nor any
delay in exercising on the part of any Guaranteed  Beneficiary any right, power,
or privilege hereunder,  shall operate as a waiver thereof; nor shall any single
or partial  exercise of any right,  power, or privilege  hereunder  preclude any
other or further exercise thereof or the exercise of any other right,  power, or
privilege.  The rights and remedies  herein  provided are  cumulative and may be
exercised  singularly or  concurrently,  and are not exclusive of any rights and
remedies provided by law or by the Lease Agreement or the other Loan Documents.

            (b)  AMENDMENTS;  WAIVERS.  This  Guaranty  may  not be  terminated,
amended,  supplemented,  waived,  or  modified  orally,  but may be  terminated,
amended,  supplemented,  waived,  or modified upon the prior written  consent of
each Guarantor, the Lessor, the Agent, and the Requisite Lenders.

            (c) SEVERABILITY.  Any provision of this Guaranty that is prohibited
or  unenforceable  in  any  jurisdiction  shall,  as to  such  jurisdiction,  be
ineffective  to the  extent  of such  prohibition  or  unenforceability  without
invalidating  the  remaining  provisions  hereof,  and any such  prohibition  or
unenforceability   in  any   jurisdiction   shall  not   invalidate   or  render
unenforceable such provision in any other jurisdiction.

            (d)  COUNTERPARTS.  This  Guaranty  may be  executed  by the parties
hereto in separate  counterparts,  each of which when so executed and  delivered
shall be an original,  but all such counterparts  shall together  constitute but
one and the same instrument.

            (e) NOTICES.  Any notice to the Guarantors hereunder may be directed
to each  Guarantor at its address set forth in Annex A, or to such other address
as each Guarantor may designate by notice given to the other parties hereto.

                                      -6-

<PAGE>

            (f) HEADINGS, REFERENCES. The section and paragraph headings in this
Guaranty are for  convenience  of reference  only and shall not modify,  define,
expand or limit any of the terms or provisions hereof.

            (g) GOVERNING  LAW.  THIS GUARANTY  SHALL BE GOVERNED BY THE LAWS OF
THE STATE OF NEW YORK, EXCLUDING (TO THE GREATEST EXTENT PERMISSIBLE BY LAW) ANY
RULE OF LAW THAT WOULD  CAUSE THE  APPLICATION  OF THE LAWS OF ANY  JURISDICTION
OTHER THAN THE STATE OF NEW YORK.  THIS GUARANTY HAS BEEN DELIVERED IN THE STATE
OF NEW YORK.

            (h) BENEFIT AND BINDING EFFECT.  The terms of this Guaranty shall be
binding upon each  Guarantor,  and shall inure to the benefit of each Guarantor,
each  Guaranteed  Beneficiary,  and their  respective  successors  and permitted
assigns (to the extent permitted hereunder and under the Loan Documents).

            (i) SERVICE OF PROCESS;  JURISDICTION AND WAIVER. Each Guarantor (A)
hereby irrevocably  submits to the nonexclusive  jurisdiction of (i) the Supreme
Court of the State of New York, New York County (without  prejudice to the right
of any party to remove to the  United  States  District  Court for the  Southern
District of New York) and (ii) the United States District Court for the Southern
District of New York for the purposes of any suit,  action,  or other proceeding
arising  out of this  Guaranty  or the  subject  matter  hereof  brought  by any
Guaranteed  Beneficiary  or its  successors  or  permitted  assigns,  (B) hereby
irrevocably agrees that all claims in respect of such suit, action or proceeding
may be heard and  determined  in such New York  State  court or, to the  fullest
extent permitted by applicable law, in such Federal court, and (C) to the extent
permitted  by  applicable  law,  hereby  irrevocably  waives,  and agrees not to
assert, by way of motion, as a defense, or otherwise,  in any such suit, action,
or proceeding any claim that it is not personally subject to the jurisdiction of
the above-named  courts,  that the suit,  action, or proceeding is brought in an
inconvenient  forum,  that the  venue of the  suit,  action,  or  proceeding  is
improper, or that this Guaranty or the subject matter hereof may not be enforced
in or by such court.  EACH GUARANTOR  WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY
SUIT,  ACTION,  PROCEEDING,  OR COUNTERCLAIM  ARISING OUT OF OR RELATING TO THIS
GUARANTY.  A  final  judgment  obtained  in  respect  of any  suit,  action,  or
proceeding  referred  to in this  Section  5(i) shall be  conclusive  and may be
enforced  in other  jurisdictions  by suit on the  judgment  or in any manner as
provided by applicable law. Each Guarantor hereby consents to service of process
in connection  with the subject  matter  specified in the first sentence of this
Section 5(i) in connection with the  above-mentioned  courts by registered mail,
FedEx,  DHL, or similar  courier at the address to which notices to it are to be
given as provided in Annex A hereto, it being agreed that service in such manner
shall  constitute  valid  service upon such  Guarantor  and its  successors  and
assigns in connection with any such suit, action, or proceeding only;  PROVIDED,
HOWEVER,  that nothing in this Section 5(i) shall affect the right of any of the
Guaranteed  Beneficiaries  or their successors or assigns to serve legal process
in any  other  matter  permitted  by  law  or  affect  the  right  of any of the
Guaranteed  Beneficiaries  or their  successors  or  assigns  to bring any suit,
action, or proceeding  against such Guarantor or its properties in the courts of
other jurisdictions.

                                      -7-

<PAGE>

            (j) SAVINGS.  Each Guaranteed  Beneficiary (by its acceptance of the
benefits  hereof) and each  Guarantor  hereby  confirms that it is its intention
that this  Guaranty  not  constitute  a fraudulent  transfer or  conveyance  for
purposes of the  Bankruptcy  Code,  the Uniform  Fraudulent  Transfer Act or any
similar  federal or state law.  To  effectuate  the  foregoing  intention,  each
Guaranteed  Beneficiary and each Guarantor  hereby  irrevocably  agrees that the
Guaranteed Obligations guaranteed by each Guarantor under this Guaranty shall be
limited to such amount as will,  after giving effect to such maximum  amount and
all of such  Guarantor's  other  (contingent or otherwise)  liabilities that are
relevant  under such laws (but  excluding,  to the maximum  extent  permitted by
applicable  law, any liabilities of a Guarantor  arising under any  indebtedness
that is subordinated to the Guaranteed Obligations or any obligations under this
Guaranty),  result in the Guaranteed Obligations of such Guarantor in respect of
such maximum amount not constituting a fraudulent transfer or conveyance.

                                    * * * * *

                                      -8-

<PAGE>

            IN WITNESS  WHEREOF,  each  Guarantor has caused this Guaranty to be
executed  as of the day and year  first  written  above for the  benefit  of the
parties named herein.

                                               POLAR AIR CARGO, INC.

                                               By: /s/ William C. Bradley
                                                   -----------------------------
                                               Name: William C. Bradley
                                               Title: Vice President & Treasurer

                                               AIRLINE ACQUISITION CORP. I

                                               By: /s/ William C. Bradley
                                                   -----------------------------
                                               Name: William C. Bradley
                                               Title: Vice President & Treasurer

<PAGE>

                                                                         ANNEX A

                      ADDRESS FOR NOTICES TO THE GUARANTORS

POLAR AIR CARGO, INC.

c/o Atlas Air Worldwide Holdings, Inc.
2000 Westchester Avenue
Purchase, New York 10577-2543

Attention: Treasurer/Corporate Finance

AIRLINE ACQUISITION CORP I

c/o Atlas Air Worldwide Holdings, Inc.
2000 Westchester Avenue
Purchase, New York 10577-2543

Attention: Treasurer/Corporate Finance

<PAGE>

                                                                      SCHEDULE I

            Lease Agreement, dated as of April 25, 2000 and amended and restated
as of July 27, 2004, between the Lessor and the Lessee, as supplemented by Lease
Supplement No. 1, dated as of July 27, 2004, which were recorded together as one
instrument by the Federal Aviation  Administration (the "FAA") on July 27, 2004,
as Conveyance No. [___________].

                                      (i)EXHIBIT 10.5.4

                                                                  EXECUTION COPY

           AMENDMENT NO. 3 TO SECURITY AGREEMENT AND CHATTEL MORTGAGE
                            (AIRCRAFT NO. N355MC)(1)

            THIS THIRD  AMENDMENT TO THE FIRST  SECURITY  AGREEMENT  AND CHATTEL
MORTGAGE is dated as of July 27, 2004, (this  "AMENDMENT"),  and entered into by
and between Atlas Air, Inc., a Delaware  corporation  ("COMPANY"),  and Deutsche
Bank Trust Company Americas, as agent for and representative of ("ADMINISTRATIVE
AGENT") the financial  institutions  ("LENDERS")  party to the Fifth Amended and
Restated Credit Agreement referred to below.

                              W I T N E S S E T H:

            WHEREAS,  Company  is  party  to that  certain  Fourth  Amended  and
Restated  Credit  Agreement,  dated as of April 25,  2000,  among  Company,  the
Lenders  from  time to time  party  thereto  and the  Administrative  Agent  (as
amended,  modified and/or  supplemented to, but not including,  the date hereof,
the "CREDIT AGREEMENT").

            WHEREAS,  pursuant to that certain Fifth Amended and Restated Credit
Agreement,  dated as of July 27, 2004,  among Company,  the Lenders from time to
time party thereto and the  Administrative  Agent (as amended,  modified  and/or
supplemented  from  time  to  time,  the  "FIFTH  AMENDED  AND  RESTATED  CREDIT
AGREEMENT"),  Company  has  agreed to  further  amend  and  restate  the  Credit
Agreement.

            WHEREAS,  Company and the  Administrative  Agent are parties to that
certain First Security Agreement and Chattel Mortgage with respect to one Boeing
747-341, U.S. Registration No. N355MC, Manufacturer"s Serial Number 23395, dated
May 18, 2000,  between Atlas Air, Inc. as debtor and Deutsche Bank Trust Company
Americas (formerly Bankers Trust Company) as Agent for and Representative of the
Lenders referred to therein,  recorded by the Federal Aviation Administration on
July 5, 2000,  as Conveyance  No.  XX015579,  amended by the First  Amendment to
First Security  Agreement and Chattel Mortgage  (Aircraft No. 23395) dated as of
May 1, 2002,  recorded May 29, 2002, as Conveyance No. M000709,  further amended
by the  Second  Amendment  to First  Security  Agreement  and  Chattel  Mortgage
(Aircraft  No.  N355MC)  dated as of April 30, 2004,  recorded May 27, 2004,  as
Conveyance No. MM026454 (the "AIRCRAFT CHATTEL MORTGAGE").

----------
(1) This Amendment to the First Security Agreement and Chattel Mortgage has been
executed in several counterparts.  To the extent, if any, that this Amendment to
the First Security Agreement and Chattel Mortgage  constitutes chattel paper (as
such  term  is  defined  in the  Uniform  Commercial  Code as in  effect  in any
applicable  jurisdiction),  no security  interest in this Amendment to the First
Security  Agreement and Chattel  Mortgage may be created through the transfer or
possession of any  counterpart  other than the original.  The  counterpart to be
deemed the original shall be the counterpart  that contains the receipt therefor
executed by Deutsche Bank Trust Company Americas,  as  Administrative  Agent, on
the  signature  page thereof and no security  interest in this  Amendment to the
First  Security  Agreement  and  Chattel  Mortgage  may be created  through  the
transfer of any counterpart other than said original counterpart.

<PAGE>

            WHEREAS,  subject to the terms and conditions  set forth below,  the
parties hereto wish to amend certain provisions of the Aircraft Chattel Mortgage
as provided herein.

            NOW THEREFORE, it is agreed:

      1. The  Aircraft  Chattel  Mortgage is hereby  amended,  by  deleting  all
references to the term "Credit  Agreement" and inserting the term "Fifth Amended
and Restated Credit Agreement" in lieu thereof.

      2. Section 1(a)(iii) of the Aircraft Chattel Mortgage is hereby deleted in
its entirety and the following is inserted in its place:

      "(iii) all appliances,  parts,  instruments,  appurtenances,  accessories,
furnishings and other equipment of whatever nature (other than complete  Engines
or  engines),  that may from time to time be  incorporated  or  installed  in or
attached to the Airframe or any Engine, together with (i) all appliances, parts,
instruments, appurtenances,  accessories, furnishings, other equipment purchased
or owned by the Borrower and identified for  incorporation or installation in or
attachment to the Airframe or any Engine  pursuant to the terms of any agreement
whether  or not  identified  in a  Supplemental  Chattel  Mortgage  and (ii) all
appliances,  parts,  instruments,  appurtenances,  accessories,  furnishings and
other equipment of whatever  nature removed from the Airframe or any Engine,  no
matter where located, until such time as it shall be replaced on the Airframe or
any  Engine  by  an  appliance,  part,  instrument,   appurtenance,   accessory,
furnishing or other equipment in as good operating condition as and with a value
and  utility  at  least  equal  to  the  item  removed.  Immediately  upon  such
replacement,   such  replacement  appliance,  part,  instrument,   appurtenance,
accessory,  furnishing or other  equipment  shall become subject to the lien and
security  interest of this  Mortgage and shall be deemed part of the Airframe or
such  Engine  for  all  purposes  hereof  to the  same  extent  as the  property
originally comprising or installed on the Airframe or any Engine and the removed
item  shall no longer  be  subject  to the lien and  security  interest  of this
Mortgage (collectively referred to herein as "PARTS"); and"

      3. Section 1(b) of the Aircraft  Chattel Mortgage is hereby amended (x) by
deleting  the text "and" from the end of clause  (xii) of section  1(b),  (y) by
renumbering  clause (xiii) of Section 1(b) as clause (xvi), and (z) by inserting
the following new clauses:

      "(xiii) the Holdings  Guaranty,  including without limitation all payments
of any kind  thereunder,  and  including  all rights of Company,  as  guaranteed
beneficiary,  to execute any election or option or to give any notice,  consent,
waiver or approval under or in respect of the Holdings Guaranty,  as well as any
rights,  powers or remedies on the part of Company,  whether  arising  under the
Holdings  Guaranty or by statute or at law or in equity,  or otherwise,  arising
out of any Event of Default or out of any breach of the Holdings Guaranty;

      (xiv) the Subsidiaries Guaranty, including without limitation all payments
of any kind  thereunder,  and  including  all rights of Company,  as  guaranteed
beneficiary,  to execute any election or option or to give any notice,  consent,
waiver or approval under or in respect of the Subsidiaries  Guaranty, as well as
any rights, powers or remedies on the part of Company, whether arising under the
Subsidiaries  Guaranty  or by  statute  or at law or in  equity,  or  otherwise,
arising  out of any Event of Default  or out of any  breach of the  Subsidiaries
Guaranty; and"

<PAGE>

      (xv) that certain  intercompany  claim owed by Polar Air to Company in the
amount  of not less  than  $5,285,660  in  unpaid  basic  rent  and  maintenance
reserves, plus an undetermined amount of other unpaid supplemental rent, in each
case under the Polar Air Lease (the  "INTERCOMPANY  CLAIM"),  which Intercompany
Claim survives the effective date of the Plan of Reorganization  pursuant to the
terms thereof; and"

      4.  Section  2 of the  Aircraft  Chattel  Mortgage  is hereby  amended  by
inserting the following new defined term in the appropriate  alphabetical order:

      "FIFTH AMENDED AND RESTATED CREDIT AGREEMENT" shall mean the Fifth Amended
and Restated Credit  Agreement,  dated as of July 27, 2004,  among Company,  the
lenders  from time to time  party  thereto,  and the  Administrative  Agent,  as
amended, modified or supplemented from time to time.

      5.  Section  4 of the  Aircraft  Chattel  Mortgage  is hereby  amended  by
inserting the following section after Section (j):

      "(k) INTERCOMPANY CLAIM. Upon the occurrence and during the continuance of
an Event  of  Default,  Company  will  cause  all  payments  in  respect  of the
Intercompany  Claim  to  be  made  directly  to  the  Administrative  Agent  for
application  as set  forth in  Section  2.4B(iii)(b)  of the Fifth  Amended  and
Restated Credit Agreement."

      6. This Amendment may be executed in any number of counterparts and by the
different parties hereto on separate  counterparts,  each of which  counterparts
when  executed  and  delivered  (including  by way of  facsimile  or  electronic
transmission)  shall be an original,  but all of which shall together constitute
one and the same instrument. A complete set of counterparts shall be lodged with
Company and the Administrative Agent.

      7. This  Amendment  is limited as  specified  and shall not  constitute  a
modification,  acceptance  or  waiver  of any other  provision  of the  Aircraft
Chattel Mortgage.

      8. From and after the date hereof,  all references in the Aircraft Chattel
Mortgage to the Aircraft  Chattel  Mortgage  shall be deemed to be references to
Aircraft Chattel Mortgage as modified hereby.

                                      * * *

<PAGE>

            IN WITNESS  WHEREOF,  the  parties  hereto  have  caused  their duly
authorized  officers to execute and deliver this  Amendment as of the date first
above written.

                                        ATLAS AIR, INC.

                                        By: /s/ William C. Bradley
                                            ---------------------------------
                                            Name: William C. Bradley
                                            Title: Vice President & Treasurer

                                                  Security Agreement and Chattel
                                        Mortgage Amendment to the First Security
                                                  Agreement and Chattel Mortgage
                                                           (Aircraft No. N355MC)

<PAGE>

                                        DEUTSCHE BANK TRUST COMPANY
                                        AMERICAS,

                                        as Administrative Agent

                                        By: /s/ Keith C. Braun
                                            ---------------------------------
                                            Name: Keith C. Braun
                                            Title: Director

                                                  Security Agreement and Chattel
                                        Mortgage Amendment to the First Security
                                                  Agreement and Chattel Mortgage
                                                           (Aircraft No. N355MC)

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