ATSG Secures Rights to Fleet of Boeing 767-300ER Aircraft
WILMINGTON, Ohio--(BUSINESS WIRE)--Dec 19, 2018--Air Transport Services Group, Inc. (Nasdaq: ATSG), the leading provider of medium wide-body cargo aircraft leasing, passenger and cargo air transport and related services, today announced an agreement with Jetran, LLC to acquire twenty Boeing 767-300 extended-range passenger aircraft from Jetran over the next three years.
The aircraft covered by this agreement are currently operated by American Airlines. They were manufactured between 1993 and 2003, and are powered by General Electric CF6-series engines. ATSG currently expects to begin freighter modification of six of the twenty 767-300s during 2019, up to nine during 2020, and no fewer than five in 2021.
Based on that anticipated schedule, and apart from any other transactions involving 767-300s, ATSG projects that it would own at least fifty-nine 767-300 freighter aircraft by the end of 2021, compared with thirty-nine at the end of 2018. ATSG also owns six other passenger 767-300s, all currently operated by its recently acquired passenger airline subsidiary, Omni Air International, and owns other Boeing 737, 757, 767 and 777 aircraft.
“As the world’s leading source of mid-sized converted 767 freighters, we have the appetite and financial strength to respond when a large fleet of commonly configured, high quality feedstock aircraft becomes available,” said Joe Hete, President and CEO of ATSG. “Our discussions with a number of customers about leasing multiple 767-300s from us for deployment in new and expanding networks give us confidence that the market will remain strong. Contracting to acquire these aircraft at good value, along with our unique abilities to convert, lease, operate and maintain them for our customers, is proof of our commitment to serve that market growth for several more years to come.”
Cargo Aircraft Management, ATSG’s aircraft leasing subsidiary, will purchase, manage freighter conversion, and lease the 20 aircraft. Based on customer demand, however, CAM may choose to refurbish and lease one or more of them internally as passenger aircraft to Omni Air for charter or ACMI service with Omni Air’s government and commercial customers.
About Air Transport Services Group, Inc. (ATSG)
ATSG is a leading provider of aircraft leasing and air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements. ATSG, through its leasing and airline subsidiaries, is the world’s largest owner and operator of converted Boeing 767 freighter aircraft. Through its principal subsidiaries, including three airlines with separate and distinct U.S. FAA Part 121 Air Carrier certificates, ATSG provides aircraft leasing, air cargo lift, passenger ACMI and charter services, aircraft maintenance and conversion services, and airport ground services. ATSG’s subsidiaries include ABX Air, Inc.; Airborne Global Solutions, Inc.; Airborne Maintenance and Engineering Services, Inc. including its subsidiary, Pemco World Air Services, Inc.; Air Transport International, Inc.; ATSG West Leasing; Cargo Aircraft Management, Inc.; and Omni Air International, LLC. For more information please visit www.atsginc.com.
Except for historical information contained herein, the matters discussed in this release contain forward-looking statements that involve risks and uncertainties. There are a number of important factors that could cause Air Transport Services Group’s (“ATSG’s”) actual results to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, continuing demand for our assets and services; the cost and timing with respect to which we are able to purchase and modify aircraft to a cargo configuration; the number and timing of deployments and redeployments of our aircraft to customers; and other factors that are contained from time to time in ATSG’s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers should carefully review this release and should not place undue reliance on ATSG’s forward-looking statements. These forward-looking statements were based on information, plans and estimates as of the date of this release. ATSG undertakes no obligation to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes.
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CONTACT: Quint O. Turner
ATSG Inc. Chief Financial Officer
KEYWORD: OHIO UNITED STATES NORTH AMERICA
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SOURCE: Air Transport Services Group, Inc.
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PUB: 12/19/2018 04:00 PM/DISC: 12/19/2018 04:01 PM