ATSG Continues Fleet Modernization with Purchase of Three Boeing 757-200 ‘Combi’ Aircraft

  ATSG Continues Fleet Modernization with Purchase of Three Boeing 757-200
  ‘Combi’ Aircraft

Business Wire

WILMINGTON, Ohio -- December 18, 2012

Air Transport Services Group, Inc. (NASDAQ:ATSG) said today that its aircraft
leasing subsidiary has reached agreement with National Air Cargo Group, Inc.,
for the purchase of three Boeing 757-200 aircraft that have been modified for
combi (combined passenger and main-deck cargo) service.

ATSG said it anticipates that its subsidiary, Cargo Aircraft Management (CAM),
will take delivery of one of the three 757 combi aircraft in December 2012,
and the other two in early 2013.

Joe Hete, President and CEO of ATSG, said, “The purchase of these three 757
combis from National, plus the one 757 combi we already own, will complete our
commitment to replace our four McDonnell-Douglas DC-8 combis with more modern
fuel-efficient aircraft that better meet the requirements of our principal
combi customer, the U.S. Military’s United States Transportation Command
(USTRANSCOM). We look forward to providing USTRANSCOM with the improved
operating performance and lower costs of the 757, as well as its greater
passenger capacity. We are proud to be USTRANSCOM’s sole combi operator,
serving primarily remote installations around the world that rely on the
combi’s unique cargo and passenger transport capabilities.”

The 757 combis have a 34 percent lower fuel burn, ten more passenger seats and
the same number of cargo pallet positions as the DC-8 combis they will
replace. The combis will be owned by CAM and leased to and operated by ATSG’s
airline subsidiary Air Transport International (ATI), under ATI’s contract
with USTRANSCOM. Along with the three aircraft, CAM is also purchasing a spare
757-200 engine and some ancillary aircraft equipment from National.

As part of its fleet modernization program, prior to ATI’s latest combi
contract award from USTRANSCOM that took effect in October 2012, CAM purchased
a Boeing 757-200 for combi conversion. That aircraft is undergoing
certification testing for the Federal Aviation Administration, and is due to
complete that process and begin USTRANSCOM service early next year. All three
of the National combis were designed and modified to meet or exceed the same
FAA and USTRANSCOM requirements, including ETOPS (Extended-range Twin-engine
Operational Performance Standards) certification essential for service to
USTRANSCOM’s combi destinations.

Upon the retirements of the four DC-8 combis, ATSG’s fleet will consist
entirely of 757-200, 767-200 and 767-300 aircraft, all of which require only
two crew members, and which share a common pilot type rating.

“This purchase of the National 757 combi aircraft further enhances our
position as the world’s largest independent provider of modern, fuel-efficient
midsized cargo aircraft to customers around the world,” Hete said. “No other
provider can match the flexibility we offer in midsized airlift, whether on a
dry-lease, ACMI or charter basis.”

ATSG noted that, as a result of its decision to acquire one of the 757 combis
in 2012, it has adjusted its previously disclosed guidance for
aircraft-related capital expenditures in 2012 and 2013 to approximately $170
million and $95 million, respectively.

About ATSG

ATSG is a leading 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. Through its principal subsidiaries,
including three 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.; Capital Cargo International Airlines,
Inc.; and Airborne Maintenance and Engineering Services, Inc. For more
information, please see www.atsginc.com.

Except for historical information contained herein, the matters discussed in
this release contain forward-looking statements that involve risks and
uncertainties. There are a number of important factors that could cause Air
Transport Services Group's ("ATSG's") actual results to differ materially from
those indicated by such forward-looking statements. These factors include, but
are not limited to, the timely delivery by National Air Cargo Group to Cargo
Aircraft Management (“CAM”) of the three Boeing 757-200 combi aircraft, , the
timing associated with the completion of FAA certification testing for the
Boeing 757-200 combi aircraft already owned by CAM, changes in market demand
for our assets and services, and other factors that are contained from time to
time in ATSG's filings with the U.S. Securities and Exchange Commission,
including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Readers should carefully review this release and should not place undue
reliance on ATSG's forward-looking statements. These forward-looking
statements were based on information, plans and estimates as of the date of
this release. ATSG undertakes no obligation to update any forward-looking
statements to reflect changes in underlying assumptions or factors, new
information, future events or other changes.

Contact:

ATSG Inc.
Quint O. Turner, 937-382-5591
Chief Financial Officer
 
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