ATSG AND CARGOJET COMPLETE AGREEMENT FOR ADDITIONAL 767-200 FREIGHTER AIRLIFT
ATSG Subsidiary to Dry-Lease Two Additional 767-200 Freighters
WILMINGTON, OH – May 6, 2014 – Air Transport Services Group, Inc. (NASDAQ:ATSG) announced today it has signed a new agreement with Cargojet, Canada’s Cargo Airline, to lease two 767-200ER freighters.
Cargojet currently dry-leases two Boeing 767-200 freighters from ATSG’s subsidiary Cargo Aircraft Management Inc. (CAM) under long-term agreements. Cargojet has signed agreements to dry-lease an additional two Boeing 767-200 freighters from CAM, for up to three years. The first aircraft is expected to be delivered by the end of the second quarter, with the second aircraft delivering early in the third quarter.
“This agreement reflects ATSG’s leadership in the 767-200 freighter market and our ability to quickly react to meet the needs of expanding cargo airlines like Cargojet,” ATSG President and CEO Joe Hete said. “Cargojet will be putting these aircraft to work quickly. Our long term relationship with them, and prior experience in leasing these aircraft-types into Canada, will provide more rapid into-service capability.”
“Cargojet is currently in the process of a fleet renewal plan. Leasing these two additional 767-200 freighters is part of our current growth strategy to continue to meet our customer’s requirements and needs,” said Ajay Virmani, President and CEO of Cargojet. “The 767-200 freighters were introduced to our fleet in 2008. These aircraft have provided our network with efficiency and reliability, allowing Cargojet to be the most dependable air cargo service provider in Canada.”
CAM President Rich Corrado said, “It’s gratifying when a satisfied customer like Cargojet, expands their business with us by taking additional aircraft. We now expect 23, or over half of our 767 freighters, to be operating under long-term dry leases with external customers by the end of the third quarter this year, and the remainder being leased by ATSG subsidiary airlines.”
Cargojet is Canada's leading provider of time sensitive overnight air cargo services and carries over 750,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of all-cargo aircraft. Cargojet recently signed an LOI with Air Canada to explore strategic opportunities in both cargo and airline operations within Canada and international markets. For more information, please visit: www.cargojet.com.
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 two airlines with separate and distinct U.S. FAA Part 121 Air Carrier certificates, ATSG provides aircraft leasing, air cargo lift, aircraft maintenance services and airport ground services. ATSG's subsidiaries include ABX Air, Inc.; Airborne Global Solutions, Inc.; Air Transport International, Inc.; Cargo Aircraft Management, Inc.; and Airborne Maintenance and Engineering Services, Inc. For more information, please see 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, changes in market demand for our assets and services, the number and timing of deployments of our aircraft, 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..