ATSG Extends and Expands Aircraft Leasing and Operating Agreements with DHL

Rhea-AI Summary

Air Transport Services Group (ATSG) has secured six-year lease extensions with DHL Network Operations for five Boeing 767 freighters, extending agreements to April 2028. The arrangement includes an expansion of the Crew, Maintenance, and Insurance agreement, adding two more freighters to a total of twelve operated by ABX Air for DHL. Following the 2021 announcement of leasing four additional freighters, the total leased fleet at DHL will rise to fifteen by 2022. This deal solidifies ATSG's support of DHL's global logistics network.

Positive

• Secured six-year lease extensions with DHL, enhancing long-term revenue stability.
• Expansion of the Crew, Maintenance, and Insurance agreement adds two more freighters, increasing operational capacity.
• Total leased fleet to DHL will increase to fifteen freighters, strengthening partnership.

Negative

• None.

WILMINGTON, Ohio--(BUSINESS WIRE)-- Air Transport Services Group, Inc. (NASDAQ: ATSG) today announced that it has executed agreements with DHL Network Operations (USA), Inc. under which ATSG’s Cargo Aircraft Management and ABX Air subsidiaries will continue to lease aircraft to DHL and operate those aircraft within DHL’s global network.

The agreements include:

• Six-year extensions through April 2028 of dry leases for five Boeing 767 freighters that CAM currently leases to DHL, and of the Crew, Maintenance and Insurance agreement (CMI) under which ABX Air operates freighter aircraft for DHL.
• Expansion of the CMI agreement to include two more 767 freighters, bringing the total operated under that agreement to twelve.

As previously announced, DHL agreed in May 2021 to lease four more 767 freighters from CAM. One was delivered in 2021 and three more will be delivered in 2022, two of which will be operated under the CMI agreement. That will increase the total CAM-leased 767 fleet at DHL to fifteen.

ABX has provided and operated cargo aircraft for DHL, principally in the United States, since August 2003.

“ATSG is pleased to continue and expand its long-standing support of DHL’s unrivaled global logistics network,” said Mike Berger, chief commercial officer of ATSG, “and we are proud of the role our airlines continue to play in delivering safe and reliable e-commerce and m-commerce satisfaction around the world.”

About Air Transport Services Group, Inc. (ATSG)

ATSG is a leading provider of aircraft leasing and cargo and passenger air transportation and related services to domestic and foreign air carriers and other companies that outsource their cargo and passenger air lift requirements. ATSG, through its leasing and airline subsidiaries, is the world's largest lessor of freighter aircraft as well as the largest owner and operator of converted Boeing 767 freighters. 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/20220208005764/en/

Quint O. Turner

ATSG Inc. Chief Financial Officer

937-366-2303

Source: Air Transport Services Group, Inc.

FAQ

What are the details of the ATSG and DHL agreement announced in February 2022?

ATSG announced six-year lease extensions for five Boeing 767 freighters with DHL, including an expansion of the Crew, Maintenance, and Insurance agreement to twelve freighters.

How many freighters will ATSG lease to DHL by 2022?

By 2022, ATSG will lease a total of fifteen Boeing 767 freighters to DHL.

What is the duration of the lease extensions between ATSG and DHL?

The lease extensions are set for six years, lasting until April 2028.

When did ATSG start providing aircraft for DHL?

ATSG has provided and operated cargo aircraft for DHL since August 2003.

Which company operates the freighters leased to DHL?

ABX Air, a subsidiary of ATSG, operates the freighters leased to DHL.