Board of directors of Air Transport Services Group, Inc. (NASDAQ:ATSG) has amended its previous share repurchase authorization to authorize repurchases of up to USD100 million of ATSG´s common shares, the company said.
On August 5, 2014, the board authorized the company to repurchase up to USD50 million of its common shares. Repurchases under that program commenced in May 2015 and have totaled approximately USD 18.3 million to date.
ATSG president and CEO Joe Hete said, “The board´s action is intended in part to accommodate an accelerated pace of share repurchases by ATSG to significantly offset the potential dilutive effect of share issuances from warrants granted to its customer Amazon.com, Inc. over the next five years. Those warrants are for the purchase of up to 19.9 percent of ATSG´s common shares through March 2021. The board also regards share repurchases as an important capital allocation alternative for ATSG for the future, as its businesses grow and deliver greater cash returns.”
ATSG is a 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. 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.