Air Transport Services Group, Inc. (NASDAQ:ATSG) today announced that its aircraft leasing subsidiary, Cargo Aircraft Management, has agreed to purchase two Boeing 767-300ER freighters that ATSG’s airline subsidiary ABX Air currently leases from Guggenheim Aviation Partners, Ltd.
CAM expects to pay Guggenheim $49.9 million for the freighters in transactions expected to close at the end of the third quarter. ABX Air operates them under two multi-year operating leases from Guggenheim that end during 2015 and 2017, respectively. Both are deployed with ABX Air customers.
ATSG also received an option to purchase one more Boeing 767-300 freighter from Guggenheim in 2015.
ATSG President and CEO Joe Hete said, “The Boeing 767-300 freighter is one of the world’s most sought-after cargo aircraft, and is a key component of our growth strategy. Purchasing these aircraft under favorable terms will save a total of $12.4 million in lease payments through 2017, in exchange for lower carrying costs under the attractive terms of our recently amended credit agreement. This is a more efficient financing of aircraft we already operate and expect to continue to deploy with customers for years to come.”
Source: Air Transport Services Group, Inc.
Date: Aug 5, 2014