Aircraft lessor Air Transport Services Group (ATSG) has completed a new agreement that extends its support of DHL’s air cargo network in the US until at least March 2019.
Principal elements of the new agreement include extended dry leases for the 13 B767 freighters currently leased to DHL and new dry leases of two B767 freighters.
Other elements of the agreement see ATSG subsidiary ABX Air continue its operation of 15 B767 freighters leased to DHL through to March 2019, plus “continued incentives for superior operating performance” and “attractive terms for DHL to broaden ATSG’s support of its global network operations”.
Joe Hete, president and chief executive of ATSG, said the agreement marks the next stage in ATSG’s lengthy relationship with DHL, under which ATSG provides the aircraft assets and services that support the majority of the air freight that moves through DHL’s US network each day, and provides additional freighter support to DHL elsewhere in the world.
“This new agreement will give DHL continued access to efficient, reliable freighter services in the US market,” Hete said.
He added: “With more than half of our 45 B767 freighters deployed under multi-year dry leases producing attractive cash flow returns, additional business arising from an improving air freight environment, and growth in our maintenance services and other operations, we intend to begin returning capital to our shareholders through our share repurchase program starting in the second quarter of 2015.”
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