EXHIBIT 10.6.4


                                                                  EXECUTION COPY

TO THE EXTENT, IF ANY, THAT THIS LEASE SUPPLEMENT  CONSTITUTES CHATTEL PAPER (AS
SUCH TERM IS IN EFFECT IN ANY APPLICABLE JURISDICTION),  NO SECURITY INTEREST IN
THIS LEASE  SUPPLEMENT MAY BE CREATED  THROUGH THE TRANSFER OR POSSESSION OF ANY
COUNTERPART OTHER THAN THE ORIGINAL EXECUTED COUNTERPART  CONTAINING THE RECEIPT
THEREFOR EXECUTED BY THE AGENT ON THE SIGNATURE PAGE HEREOF.

                             LEASE SUPPLEMENT NO. 1

            LEASE SUPPLEMENT No. 1, dated July 27, 2004, between ATLAS FREIGHTER
LEASING III, INC., (the "Lessor"), and ATLAS AIR, INC. (the "Lessee").

            The Lessor and the Lessee have heretofore entered into a Amended and
Restated  Lease  Agreement  (N505MC),  dated as of July 27, 2004 relating to one
Boeing  B747-2D3B  aircraft  (herein  called the "Lease"  and the defined  terms
therein being  hereinafter used with the same meanings).  The Lease provides for
the  execution  and  delivery  from  time to time of Lease  Supplements  for the
purpose  of  leasing  the  Airframe  and  Engines  under  the  Lease as and when
delivered by the Lessor to the Lessee in accordance with the terms thereof.

            The Lease relates to the Airframe and Engines described below, and a
counterpart of the Lease is attached  hereto,  and made a part hereof,  and this
Lease Supplement  together with such attachment,  is being filed for recordation
on the date hereof with the Federal Aviation Administration as one document.

            NOW, THEREFORE,  in consideration of the premises and other good and
sufficient consideration, the Lessor and the Lessee hereby agree as follows:

            1. The Lessor  hereby  delivers  and leases to the Lessee  under the
Lease and the Lessee  hereby  accepts and leases from the Lessor under the Lease
the  following  described  Boeing  B747-2D3B  aircraft (the  "Aircraft"),  which
Aircraft as of the date hereof consists of the following components:

            (i) Airframe:  U.S.  Registration No. N505MC;  manufacturer's serial
      no. 21251; and

            (ii)  Engines:  four (4)  aircraft  engines  bearing,  respectively,
      manufacturer's  serial nos. 517597,  530388,  530389,  and 517599 (each of
      which engines has 750 or more rated takeoff  horsepower or the  equivalent
      of such horsepower).

            2.  The  closing  date of the  Aircraft  is the  date of this  Lease
Supplement  set forth in the  opening  paragraph  hereof.  Except  as  otherwise
provided in the Lease,  the Term for the Aircraft  shall commence on the closing
date and end on the Final Maturity Date.

            3. The Lessee  hereby  confirms  to the  Lessor  that the Lessee has
accepted  the  Aircraft  for all  purposes  hereof  and of the  Lease  as  being
airworthy,  in good working order and



repair  and  without  defect  or  inherent  vice in  title,  condition,  design,
operation or fitness for use; PROVIDED,  HOWEVER,  that nothing contained herein
or in the Lease  shall in any way  diminish  or  otherwise  affect any right the
Lessee  or the  Lessor  may  have  with  respect  to the  Aircraft  against  the
manufacturer,  any affiliate  thereof,  or any  subcontractor or supplier of the
manufacturer  or  any  affiliate  thereof,   under  any  purchase  agreement  or
otherwise.

            4.  All  of  the  terms  and  provisions  of the  Lease  are  hereby
incorporated  by  reference  in this Lease  Supplement  to the same extent as if
fully set forth herein.

            5. This Lease  Supplement  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.


                                      -2-


            IN WITNESS WHEREOF,  the Lessor and the Lessee have each caused this
Lease Supplement to be duly executed as of the day and year first above written.

                                            ATLAS FREIGHTER LEASING III, INC.,
                                             Lessor


                                            By: /s/ William C. Bradley
                                                --------------------------------
                                            Name: William C. Bradley
                                            Title: Treasurer and Secretary


                                                            Amended and Restated
                                                                 Lease Agreement
                                                              (Lease Supplement)
                                                                        (N505MC)


                                           ATLAS AIR, INC.,
                                            Lessee


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


                                                            Amended and Restated
                                                                 Lease Agreement
                                                              (Lease Supplement)
                                                                        (N505MC)



Accepted and Agreed:

ATLAS AIR WORLDWIDE HOLDINGS, INC.


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


                                                            Amended and Restated
                                                                 Lease Agreement
                                                              (Lease Supplement)
                                                                        (N505MC)




                           Schedule to Exhibit 10.6.4

The agreements listed below are substantially identical to this exhibit and are
not being filed separately as exhibits pursuant to instruction 2 to Regulation
S-K, Item 601.



- -------------------- ------------------------ ---------------- ------------------------- -----------------------------
REGISTRATION         MANUFACTURER'S SERIAL    LESSEE           LESSOR                    AGREEMENT
NUMBER               NUMBER(S)
- -------------------- ------------------------ ---------------- ------------------------- -----------------------------
                                                                             
N509MC               21221                    Atlas Air, Inc.  Atlas Freighter Leasing   Lease Supplement No. 1
                                                               III                       (N509MC) dated as of July
                                                                                         27, 2004
- -------------------- ------------------------ ---------------- ------------------------- -----------------------------

N512MC               21220                    Atlas Air, Inc.  Atlas Freighter Leasing   Lease Supplement No. 1
                                                               III                       (N512MC) dated as of July
                                                                                         27, 2004
- -------------------- ------------------------ ---------------- ------------------------- -----------------------------

N517MC               23300                    Atlas Air, Inc.  Atlas Freighter Leasing   Lease Supplement No. 1
                                                               III                       (N517MC) dated as of July
                                                                                         27, 2004
- -------------------- ------------------------ ---------------- ------------------------- -----------------------------

N522MC               21783                    Atlas Air, Inc.  Atlas Freighter Leasing   Lease Supplement No. 1
                                                               III                       (N522MC) dated as of July
                                                                                         27, 2004
- -------------------- ------------------------ ---------------- ------------------------- -----------------------------

N523MC               21782                    Atlas Air, Inc.  Atlas Freighter Leasing   Lease Supplement No. 1
                                                               III                       (N523MC) dated as of July
                                                                                         27, 2004
- -------------------- ------------------------ ---------------- ------------------------- -----------------------------

N524MC               21784                    Atlas Air, Inc.  Atlas Freighter Leasing   Lease Supplement No. 1
                                                               III                       (N524MC) dated as of July
                                                                                         27, 2004
- -------------------- ------------------------ ---------------- ------------------------- -----------------------------

N526MC               22337                    Atlas Air, Inc.  Atlas Freighter Leasing   Lease Supplement No. 1
                                                               III                       (N526MC) dated as of July
                                                                                         27, 2004
- -------------------- ------------------------ ---------------- ------------------------- -----------------------------

N527MC               22471                    Atlas Air, Inc.  Atlas Freighter Leasing   Lease Supplement No. 1
                                                               III                       (N527MC) dated as of July
                                                                                         27, 2004
- -------------------- ------------------------ ---------------- ------------------------- -----------------------------

N528MC               22472                    Atlas Air, Inc.  Atlas Freighter Leasing   Lease Supplement No. 1
                                                               III                       (N528MC) dated as of July
                                                                                         27, 2004
- -------------------- ------------------------ ---------------- ------------------------- -----------------------------

N534MC               21832                    Atlas Air, Inc.  Atlas Freighter Leasing   Lease Supplement No. 1
                                                               III                       (N534MC) dated as of July
                                                                                         27, 2004
- -------------------- ------------------------ ---------------- ------------------------- -----------------------------

N808MC               21048                    Atlas Air, Inc.  Atlas Freighter Leasing   Lease Supplement No. 1
                                                               III                       (N5808MC) dated as of July
                                                                                         27, 2004
- -------------------- ------------------------ ---------------- ------------------------- -----------------------------

N809MC               20887                    Atlas Air, Inc.  Atlas Freighter Leasing   Lease Supplement No. 1
                                                               III                       (N580MC) dated as of July
                                                                                         27, 2004
- -------------------- ------------------------ ---------------- ------------------------- -----------------------------

CF6-50E2 Spare       530168; 517530;          Atlas Air, Inc.  Atlas Freighter Leasing   Lease Supplement No. 1
Engines              517790; 517602;                           III                       (CF6-50E2 Spare Engines)
                     517547; 517,538;                                                    dated as of July 27, 2004
                     517,539; 455167; 530255
- -------------------- ------------------------ ---------------- ------------------------- -----------------------------

CF6-80C2 BSF Spare   704,699; 704860; 704918  Atlas Air, Inc.  Atlas Freighter Leasing   Lease Supplement No. 1
Engines                                                        III                       (CF6-80C2 BSF Spare
                                                                                         Engines) dated as of July
                                                                                         27, 2004
- -------------------- ------------------------ ---------------- ------------------------- -----------------------------