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WILMINGTON, OH - February 17, 2011 – Air Transport Services Group, Inc. (NASDAQ:ATSG) announced today that Cargo Aircraft Management, Inc. (CAM), its aircraft leasing subsidiary, has executed a long-term dry lease of a Boeing 767-200 freighter to RIO Linhas Aéreas, S.A., of Brazil. It is the first of two 767-200 freighters that CAM is expected to lease to RIO in 2011.
RIO, a Brazilian cargo airline company, has indicated that it intends to use the CAM-leased 767-200s to supplement its fleet of seven 727-200 freighters operating within South America, and between South America and Miami.
“The lease of Cargo Aircraft Management’s 767-200 freighter aircraft works well with our existing 727-200 fleet and will allow us to meet our expansion strategy in Brazil and internationally in a timely and cost effective manner,” said Leonardo Cordeiro, President of RIO Linhas Aéreas, S.A.
The first lease agreement is for 59 months, with delivery expected early this summer. The second lease agreement is anticipated to be completed early next month, with delivery expected in the fall.
CAM projects that it will have 39 of its owned Boeing 767 freighters deployed by the end of 2011, 20 of which already are committed under long-term leases to non-affiliated customers. The remaining aircraft will be leased to ATSG’s airline subsidiaries.
The lease agreement includes access for RIO to engine maintenance services covered under CAM's contract with Delta Tech Ops.
“This is a significant event for CAM, marking our first dry leases in the rapidly growing South American market. We are happy to be able to assist RIO Linhas Aéreas in expanding its business, and look forward to a long relationship,” said Rich Corrado, President of Cargo Aircraft Management, Inc.
About RIO Linhas
About Air Transport
Services Group, Inc. (ATSG)
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 timely completion of Boeing 767 freighter modifications 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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