ATSG Delivers Two Boeing 767s to Georgian Airways

Rhea-AI Summary

Air Transport Services Group (NASDAQ: ATSG) has announced that its leasing subsidiary, Cargo Aircraft Management (CAM), has delivered two Boeing 767-300 aircraft to Georgian Airways under multi-year leases. One is a passenger aircraft delivered in June, while the other is a newly converted freighter delivered in July. This move aligns with ATSG's Lease+Plus strategy, providing comprehensive leasing solutions for global customers.

David Gaiashvili, general director of Georgian Airways, expressed satisfaction with the partnership, highlighting the airline's three-decade history and commitment to safety. Mike Berger, CEO of ATSG, noted that these leases reflect the growing demand for global air capacity and emphasized the suitability of medium widebody freighters like the Boeing 767 and Airbus A330 for cargo airlines in Eastern Europe and Western Asia.

Positive

• Delivery of two Boeing 767-300 aircraft to Georgian Airways under multi-year leases
• Expansion of ATSG's customer base in Eastern Europe
• Demonstration of growing demand for global air capacity
• Validation of ATSG's Lease+Plus strategy

Negative

• None.

Insights

Financial Analyst

ATSG's recent delivery of two Boeing 767-300 aircraft to Georgian Airways marks a significant expansion of their leasing portfolio and reinforces their Lease+Plus strategy. This move demonstrates ATSG's ability to capitalize on the growing demand for global air capacity, particularly in emerging markets.

The deal's structure, involving both a passenger and a newly converted freighter aircraft, showcases ATSG's versatility in meeting diverse client needs. This diversification strategy could potentially lead to increased revenue streams and improved risk management for ATSG.

From a financial perspective, multi-year leases provide stable, predictable cash flows, which are highly valued by investors. The expansion into Eastern Europe and Western Asia markets could also open up new growth opportunities for ATSG, potentially leading to increased market share and improved geographical diversification of their revenue sources.

However, investors should be mindful of potential risks, such as geopolitical instability in the region and the cyclical nature of the aviation industry. It's important to monitor how this deal impacts ATSG's balance sheet and overall financial performance in the coming quarters.

Aviation Industry Expert

The delivery of these two Boeing 767-300 aircraft to Georgian Airways is a strategic move that aligns with current industry trends. The medium widebody freighter market, particularly for Boeing 767 and Airbus A330 aircraft, is experiencing robust demand, especially in Eastern Europe and Western Asia.

Tbilisi's geographic location presents a significant advantage for Georgian Airways, positioning it as a potential hub for cargo flows between China, Europe, Southeast Asia and the Middle East. This strategic positioning could lead to increased utilization rates for the leased aircraft, potentially benefiting both Georgian Airways and ATSG.

The inclusion of a passenger aircraft in the deal is noteworthy, suggesting a balanced approach to fleet expansion by Georgian Airways. This dual-purpose fleet strategy allows for flexibility in responding to market demands, whether in passenger travel or cargo transportation.

The conversion of one Boeing 767-300 into a freighter aligns with the global trend of increased demand for air cargo capacity, partly driven by the e-commerce boom. This trend is likely to continue, potentially leading to more conversion opportunities for ATSG and sustained demand for their leasing services.

Overall, this deal reflects the aviation industry's ongoing adaptation to changing market dynamics and the growing importance of strategic partnerships in navigating these shifts.

WILMINGTON, Ohio--(BUSINESS WIRE)-- Air Transport Services Group, Inc. (NASDAQ: ATSG) announced today that its leasing subsidiary Cargo Aircraft Management (CAM) recently delivered two Boeing 767-300 aircraft to Georgian Airways LLC of Tbilisi, Georgia under multi-year leases.

One of the two Boeing 767-300s is a passenger aircraft delivered in June, while the other is a newly converted freighter delivered in July.

"We are pleased to deepen our partnership with ATSG with these two aircraft," said David Gaiashvili, general director of Georgian Airways. "Founded over three decades ago, Georgian Airways has established itself as a trusted leader in the aviation industry with a steadfast commitment to safety and a relentless pursuit of excellence. We are looking forward to growing with ATSG following its great experience and expertise in the industry."

Georgian Airways offers scheduled, charter and regular flights across Europe, the Baltic region, the Caucasus, the Black Sea Region, the Middle East, eastern and southern Asia.

"These leases reflect the growing demand for global air capacity and reinforce our Lease+Plus strategy, providing comprehensive, reliable, and flexible leasing solutions for our global customers," said Mike Berger, chief executive officer of ATSG. "We are excited to grow capacity with our existing customers, as it validates the value ATSG brings to the leasing market. Medium widebody freighters like the Boeing 767 and Airbus A330 are ideal for cargo airlines based in Eastern Europe and Western Asia. The geographic location of Tbilisi is an excellent mid-point for goods flowing out of China and ultimately destined for Europe, Southeast Asia, and the Middle East."

About Air Transport Services Group

Air Transport Services Group (ATSG) is a premier provider of aircraft leasing and cargo and passenger air transportation solutions for both domestic and international air carriers, as well as companies seeking outsourced airlift services. ATSG is the global leader in freighter aircraft leasing with a fleet that includes Boeing 767, Airbus A321, and Airbus A330 converted freighters. ATSG's unique Lease+Plus aircraft leasing opportunity draws upon a diverse portfolio of subsidiaries including three airlines holding separate and distinct U.S. FAA Part 121 Air Carrier certificates to provide air cargo lift, passenger ACMI and charter services. Complementary services from ATSG's other subsidiaries allow the integration of aircraft maintenance, airport ground services, and material handling equipment engineering and service. ATSG subsidiaries comprise 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.; LGSTX Services, Inc.; and Omni Air International, LLC. For further details, please visit www.atsginc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240729911522/en/

Quint Turner, Chief Financial Officer

Air Transport Services Group, Inc.

937-366-2303

Source: Air Transport Services Group, Inc.

FAQ

What aircraft did ATSG deliver to Georgian Airways?

ATSG delivered two Boeing 767-300 aircraft to Georgian Airways: one passenger aircraft in June and one newly converted freighter in July.

How does this delivery align with ATSG's business strategy?

The delivery aligns with ATSG's Lease+Plus strategy, which provides comprehensive, reliable, and flexible leasing solutions for global customers.

Why are medium widebody freighters like the Boeing 767 ideal for Eastern European and Western Asian cargo airlines?

These aircraft are ideal due to their capacity and range, making them suitable for cargo routes between China, Europe, Southeast Asia, and the Middle East, with Tbilisi serving as an excellent mid-point.

What does this delivery indicate about the global air cargo market?

The delivery reflects a growing demand for global air capacity, particularly in the regions served by Georgian Airways.