Air Transport Services Group, Inc. (NASDAQ: ATSG) subsidiaries have acquired two Boeing 737-400 aircraft and will convert them to freighter configuration for lease to China-based Okay Airways, the company said.
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.
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.
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 subsidiaries, including PEMCO and ATSG West Leasing Limited, ATSG provides aircraft leasing, air cargo lift, aircraft maintenance services, cargo conversion and airport ground services.