ATSG's subsidiary to buy three more Boeing 767-300s for freighter conversion
February 28, 2018 – Cargo Aircraft Management (CAM), a subsidiary of Air Transport Services Group (ATSG) has placed orders for three additional 767-300 aircraft for freighter conversion. It’s in addition to the eight already slated for conversion and deployment during 2018.
Based on ATSG's rights to conversion slots, it expects to complete modification of two of the three additional 767s by the end of this year.
Joe Hete, president and chief executive officer of ATSG said: “We continue to witness robust global demand for our expanding fleet of 767 freighters, and we are confident to have customers waiting for these as they emerge from our pipeline.”
“Eighty-seven percent of our 767 fleet will be under multi-year dry leases by the end of 2018. We expect strong returns from these fleet investments, thanks to our experience in acquiring, converting, and deploying midsize freighters, our unique array of support services, and e-commerce trends driving worldwide investments in regional express networks,” said Hete.
For the quarter ended December 31, 2017, ATSG witnessed a double-digit growth in revenues to $323.0 million, up by 46 percent. The overall revenue during 2017 rose 39 percent to $1.1 billion.
“Our 2017 results reflect substantial gains in the operational effectiveness and expanded flight schedules of our airlines during peak season, strong contributions from our other businesses, and growth in our leased freighter fleet, including external leases covering fifty of our sixty-one Boeing 767s. We also assured our access to low-cost capital with a $120 million increase in our credit facility and a $259 million offering of convertible senior notes. With our attractive asset mix expanding into the narrow-body sector, strong cash-flow generation, and lower federal tax rates, we are well positioned for continued growth in the future,” said Hete.