Air Transport Services Group buys 3 Boeing 767-300s

AIR Transport Services Group Inc, a provider of air cargo transport and related services to air carriers and companies that outsource air cargo requirements, announced that its Cargo Aircraft Management Inc (CAM) subsidiary has committed to purchase three Boeing 767-300 extended-range aircraft from Qantas.

ATSG expects to take delivery of the Boeings in the third quarter to then be converted into freighters.

All three aircraft are equipped with General Electric CF6-80C2-B6 engines. When converted into standard freighters, they are expected to have a range of 3,255 nautical miles and a maximum payload of 120,000 pounds.

"The purchase of these 767-300ERs extends our leading position in the medium wide-body freighter market, and gives us the means to transport greater cargo volumes over longer non-stop routes than our 767-200s can while efficiently interlining standard pallet cargo with larger wide-body freighters," said ATSG chief executive Joe Hete.

An ATSG statement also said that it will soon complete arrangements for modification of the three aircraft into full freighters, with a goal of deploying the first of the 767-300s in the first half of 2011 on a leased or ACMI basis.

Depending on the terms of a modification agreement, ATSG expects that its total cost to purchase and modify each of the three aircraft to full freighter configuration will compare "favourably" with current market values for similar converted 767-300ER freighters. Those market values range from US$28.5 million to $31.5 million, according to Air Cargo Management Group, ATSG said.

ATSG will finance the purchases and modifications from existing credit facilities, and said it expects to deploy the aircraft at "attractive" returns on invested capital.

"Our investment here reflects continued strong demand for our existing 767-200 freighters, our confidence that the Boeing 767 will remain the preferred medium wide-body freighter for many years to come, and our comprehensive range of value-added products and services that assure our customers a successful transition and our full operating support," Mr Hete said.
(source:www.schednet.com)