Air Transport Services Group, Inc. (NASDAQ: ATSG) announced today that its subsidiaries have acquired two Boeing 737-400 aircraft and will convert them to freighter configuration for lease to China-based Okay Airways.
ATSG West Leasing Limited, an aircraft leasing company based in Ireland and a wholly owned ATSG subsidiary, has acquired and will lease the aircraft to Okay in late 2017 for terms of seven years. PEMCO World Air Services, another wholly owned ATSG subsidiary, will convert the 737-400s to freighters this summer at PEMCO’s facilities at the Tampa International Airport.
Brad Heath, Managing Director of ATSG West Leasing, said, “We are very pleased to acquire, convert and lease these aircraft into the air express market in China. This initiative leverages the core capabilities of PEMCO, ATSG West Leasing and of our strategic partners in China.”
Okay Airways will operate the aircraft in support of its express services for e-commerce and other companies in the domestic China market. ATSG, Okay Airways, and Tianjin Dongjiang Investment holdings, a Tianjin government affiliate, are establishing a joint venture company to support the growing e-commerce market there.
Mike Andrews, PEMCO’s director of conversion programs, said, “We’re excited to be working with our affiliate ATSG West Leasing Limited and to be redelivering more PEMCO-converted aircraft into the Chinese market.”
PEMCO and its affiliates continue to lead the narrow-body freighter conversion market in China through conversions of 70 percent of China-based 737-300 and -400 freighters in service. Through its subsidiaries, including PEMCO and ATSG West Leasing Limited, ATSG provides aircraft leasing, air cargo lift, aircraft maintenance services, cargo conversion and airport ground services.
The 737-400 PEMCO-converted cargo aircraft features 11 pallet positions, up to 48,000 pounds of payload, and 4,600 cubic feet of total volume under PEMCO’s supplemental type certificate. The optimized center of gravity of PEMCO’s B737-400 freighter yields the highest possible usable payload and retains maximum best-in-class fuel efficiency for unbeatable range and operating economics. PEMCO’s 60-plus customers select the company’s passenger-to-freighter conversion services for its superior cargo door and system, superior operating functions, on-time turnaround, and a track record of 2 million hours of safe, reliable operation.
About PEMCO World Air Services
PEMCO World Air Services, an Airborne Maintenance and Engineering Services (AMES) company, serves customers from airlines to private operators. Having developed over 70 STCs and modified over 350 aircraft and with conversion partnerships in China, Costa Rica and Canada, PEMCO’s cargo conversion program is the global leader in narrow-body passenger-to-freighter aircraft conversions. PEMCO and AMES, wholly-owned subsidiaries of Air Transport Services Group (NASDAQ:ATSG), offer 320,000 sq. ft. of hangar space in Tampa, Fla. and 315,000 sq. ft. of hangar space in Wilmington, Ohio. Together, they provide a range of services to the aviation sector including heavy maintenance, line maintenance, cargo conversions, engineering services, material sales and manufacturing. Combining the maintenance experience as an Airborne Maintenance and Engineering Services company with industry-leading conversion capacity, PEMCO World Air Services is a leading provider of services for Boeing and Airbus fleets. For more information, please visit PEMCOAIR.com or AIRBORNEMX.com.
About Air Transport Services Group
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 two airlines with separate and distinct U.S. FAA Part 121 Air Carrier certificates, ATSG provides aircraft leasing, air cargo lift, aircraft maintenance services and airport ground services. ATSG's subsidiaries include ABX Air, Inc.; Airborne Global Solutions, Inc.; Air Transport International, Inc.; Cargo Aircraft Management, Inc.; and Airborne Maintenance and Engineering Services, Inc. For more information, please see www.atsginc.com.
