ATSG and DHL Agree to Four Additional 767 Leases

Rhea-AI Summary

Air Transport Services Group (ATSG) announced that its subsidiary, Cargo Aircraft Management, will lease four Boeing 767-300 converted freighters to DHL Network Operations. These leases, structured as stand-alone dry agreements for seven years, will expand DHL's capabilities within its global network. Three aircraft are scheduled for delivery in the second half of 2021, with one more in early 2022. This addition will bring the total number of leased Boeing 767 aircraft from ATSG to 17, enhancing support for DHL's growing shipment volume amidst a competitive freighter market.

Positive

• Expansion of leasing agreement with DHL, indicating strong demand.
• Strengthening a long-standing relationship with a key client.
• Increased operational capacity for DHL, supporting e-commerce growth.

Negative

• None.

Air Transport Services Group, Inc. (NASDAQ: ATSG) announced today that its leasing subsidiary Cargo Aircraft Management has committed to provide four additional Boeing 767-300 converted freighters to DHL Network Operations (USA), Inc. under the terms of stand-alone dry lease agreements. The leases are each for a term of seven years. Three of the four are to be delivered during the second half of 2021, with the fourth lease delivery in early 2022.

The leased freighters will bring additional support to the DHL Express global network, with the four Boeing 767 aircraft extending the longstanding relationship between DHL and ATSG. Once these additional four aircraft start flying, DHL Express will have 17 Boeing 767 aircraft under lease from CAM in their global network.

“The shipment volume growth that we continue experiencing requires the expansion of our global aviation network,” said Rob Hyslop, executive vice president, global aviation for DHL Express. “We are pleased to further our relationship with ATSG. The freighter market is very competitive right now, so securing this additional capacity is critical to meet customer demand.”

“We are delighted to strengthen our eighteen-year relationship with DHL,” said Mike Berger, chief commercial officer of ATSG. “The demand for our 767 medium-widebody converted freighter aircraft remains very strong due to the continued expansion of express and e-commerce markets around the globe. We are proud to be one of the companies enabling the further expansion of e-commerce and m-commerce around the world.”

DHL – The logistics company for the world

DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 400,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as “The logistics company for the world.” DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 66 billion euros in 2020. With sustainable business practices and a commitment to society and the environment, the Group makes a positive contribution to the world. Deutsche Post DHL Group aims to achieve zero-emissions logistics by 2050.

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 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.; Cargo Aircraft Management, Inc.; and Omni Air International, LLC. For more information, please see www.atsginc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210524005798/en/

FAQ

What recent announcement did ATSG make regarding DHL?

ATSG announced that its subsidiary will lease four additional Boeing 767-300 converted freighters to DHL under seven-year agreements.

When will the new Boeing 767 freighters be delivered to DHL?

Three of the new freighters are scheduled for delivery in the second half of 2021, and the fourth will be delivered in early 2022.

How many Boeing 767 aircraft will DHL have under lease from ATSG after the new deliveries?

After the new deliveries, DHL will have a total of 17 Boeing 767 aircraft leased from ATSG.

Why is the lease of additional freighters important for DHL?

The lease is critical for DHL to meet growing shipment volumes and customer demand in a competitive market.

What type of agreements are the new leases between ATSG and DHL?

The new leases are stand-alone dry lease agreements.