Air Transport Services Group


WILMINGTON, OH - November 3, 2010 – Air Transport Services Group, Inc. (NASDAQ:ATSG) today reported the launch of new freighter service within Asia, across the Atlantic, and within North America, along with customer commitments for more Boeing 767 widebody freighters, including advanced 767-300s.

Additional air cargo service for ATSG customers includes the following:

  • On November 1, ABX Air flight crews began operating one of the company’s Boeing 767-200 freighters in Asiafor Japan Airlines International (JAL) under an evergreen agreement that requires the reimbursement of ABX Air’s costs if cancelled within the first two years. This Aircraft, Crew, Maintenance and Insurance (ACMI) agreement is related to JAL’s support of DHL customers in Asia.
  • On November 1, Air Transport International (ATI) began new DC-8 freighter service for BAX Global between the U.S. and several destinations in Mexico.
  • Also this week, Capital Cargo International Airlines (CCIA) added a Boeing 727 freighter to BAX Global’s U.S. network.
  • Later this month, ABX Air will begin daily transatlantic ACMI service for DHL between the United Kingdom and the U.S., via a Boeing 767-300 freighter that ABX Air has leased from a third party under a 45-month agreement.
  • Last month, ABX Air flight crews began operating the first of up to four additional Boeing 767-200 freighters in DHL’s U.S. network under terms of the existing Crew, Maintenance and Insurance (CMI) agreement between DHL and ABX Air. These DHL-owned aircraft are in addition to 13 767-200s that DHL has committed to lease from ATSG’s Cargo Aircraft Management (CAM), and which will also be operated in the U.S. by ABX Air crews under the CMI agreement.
  • Amerijet today exercised the first of three options for a 767-200 for a seven-year dry lease, to be effective in January 2011. Amerijet currently leases two 767-200 aircraft from CAM.

Customer commitments for future and continuing business include the following:

  • ATI was renewed as the exclusive provider of flexible DC-8 combi aircraft to the U.S. military’s Air Mobility Command through September 2011.
  • The U.S. Postal Service (USPS) has renewed contracts for our management of its regional sort centers in Dallas, Indianapolis and Memphis for an additional two years, along with a contract to manage an additional expanded holiday-season sort facility in Dallas.

“We are pleased with the strong level of support from our customers for our aircraft assets, and the flight crews and other personnel who support them,” ATSG President and CEO Joe Hete said. “In addition to the service we are announcing today, we are working toward firm commitments for the lease and operation of additional 767 freighters, including all three of the 767-300 freighters we are converting and will add next year. The fact that we leased a 767-300 to meet DHL’s immediate needs, while the first of the three aircraft we purchased from Qantas won’t complete modification until the first quarter next year, is evidence of the strong demand for 300s we are seeing worldwide. These new and renewed agreements are convincing evidence of strong global demand for our existing freighter fleet, and for our ability to build solutions that blend leasing, operation, maintenance and technical services in unique ways that best meet the needs of our customers.”

About Air Transport Services Group, Inc. (ATSG)
ATSG is a leading provider of air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements. Through its principal subsidiaries, including three airlines with separate and distinct U.S. FAA Part 121 Air Carrier certificates, ATSG provides air cargo lift, aircraft leasing, aircraft maintenance services, airport ground services, fuel management, specialized transportation management, and air charter brokerage services. ATSG’s subsidiaries include ABX Air, Inc.; Air Transport International, LLC; Cargo Aircraft Management, Inc.; Capital Cargo International Airlines, Inc.; and Airborne Maintenance and Engineering Services Inc.

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 cost and timing associated with the modification of Boeing 767-200 and 767-300 aircraft, ABX Air’s ability to maintain on-time service and control costs under its new operating agreement with DHL, 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.

For more information, contact:
Quint O. Turner
Chief Financial Officer
Air Transport Services Group, Inc.