Air Transport Services Group, Inc. (NASDAQ:ATSG) subsidiary Cargo Aircraft Management has reached agreement with Northern Aviation Services, Inc. for the lease of three Boeing 767-300 freighters to be operated by subsidiary Northern Air Cargo, the company said.
The aircraft will provide service to its cargo brands Aloha Air Cargo based in Hawaii, StratAir based in Florida, and Northern Air Cargo based in Alaska.
Northern Aviation Services, Inc. operates Boeing 737 freighters and provides 767 freighter services under ACMI (Aircraft, Crew, Maintenance, and Insurance) agreements with ATSG´s airline subsidiaries.
Under the agreements, CAM will lease three 767-300 freighters to Northern Aviation Services, Inc. for seven-year terms, beginning with the first lease in October 2017. The agreements also provide for the potential lease of additional 767-300s from CAM in 2018. These long-term lease placements will add to the already greater than 80 percent of CAM´s 767 fleet contracted under multi-year dry lease.
Some of the leased 767-300s will replace CAM-owned 767-200/300s currently operating on an ACMI basis under ATSG´s Wet-2-Dry program, which allows carriers to prove their business case for 767s under ACMI arrangements, then transition to long-term dry lease arrangements.
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. ATSG, through its leasing and airline subsidiaries, is the world´s largest owner and operator of converted Boeing 767 freighter aircraft.