Profile: Air Transport Services Group Inc (ATSG.O)

ATSG.O on Nasdaq

10.52USD
29 May 2015
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Air Transport Services Group, Inc. (ATSG), incorporated on September 5, 2007, provides airline operations, aircraft leases, aircraft maintenance and other support services primarily to the cargo transportation and package delivery industries. The Company's principal subsidiaries include two independently certificated airlines, ABX Air, Inc. (ABX) and Air Transport International, Inc. (ATI), and an aircraft leasing company, Cargo Aircraft Management, Inc. (CAM). Through its subsidiaries, it offers a range of complementary services to delivery companies, freight forwarders, airlines and government customers. The Company has two reportable segments, ACMI Services and CAM. ATSG's airline operations are aggregated into the ACMI Services segment. ATSG offers a range of complementary services to delivery companies, freight forwarders, airlines and government customers.

The Company’s other business operations include aircraft maintenance and modification services, aircraft part sales, equipment leasing and maintenance and mail handling for the United States Postal Service (USPS). ATSG’s other businesses and subsidiaries providing support services consists of: Airborne Maintenance and Engineering Services, Inc. (AMES), which is an aircraft maintenance and repair organization; AMES Material Services, Inc. (AMS), which markets and sells aircraft parts; LGSTX Services, Inc. (LGSTX), which provides facility maintenance and ground equipment rentals for aircraft support; LGSTX Distribution Services, Inc. (LDS), which operates mail sorting centers for the USPS, and Global Flight Source (GFS), which provides aircraft dispatch and flight tracking services.

ACMI Services Segment

The ACMI Services segment provides airline operations to its customers, typically under contracts providing for a combination of aircraft, crews, maintenance and insurance (ACMI). Its customers are usually responsible for supplying the necessary aviation fuel and cargo handling services and reimbursing its airline for other operating expenses, such as landing fees, ramp expenses and certain aircraft maintenance expenses. As of December 31, 2013, ACMI Services included 48 in-service aircraft, including 29 leased internally from CAM, six leased from external providers and 13 CAM-owned freighter aircraft which are under lease to DHL and operated by ABX under the CMI agreement.

CAM

CAM’s fleet of 49 serviceable freighter aircraft as of December 31, 2013, consisted of Boeing 767 and Boeing 757. CAM leases aircraft to ATSG's airlines and to external customers, including DHL, usually under multi-year contracts with a schedule of fixed monthly payments. Under a typical lease arrangement, the customer maintains the aircraft in serviceable condition at its own cost.

Aircraft Maintenance and Modification Services

The Company provides aircraft maintenance and modification services to other air carriers through its ABX and AMES subsidiaries. ABX and AMES have technical expertise related to aircraft modifications. AMES operates a Federal Aviation Administration (FAA) certificated 145 repair station in Wilmington, Ohio, including hangars, a component shop and engineering capabilities. AMES markets its capabilities by identifying aviation-related maintenance and modification opportunities and matching them to its capabilities. AMES’ marketable capabilities include the installation of avionics systems and flat panel displays for Boeing 757 and Boeing 767 aircraft. AMES has the capability to perform line maintenance and airframe maintenance on McDonnell Douglas DC-9, MD-80, Boeing 767, 757, 737 and 727 aircraft. AMES also has the capability to refurbish airframe components, including approximately 60% of the components for Boeing 767 aircraft.

Aircraft Parts Sales and Brokerage

AMS is a broker of aircraft parts. AMS carries an inventory of Boeing 767, DC-9 and DC-8 spare parts and also maintains inventory on consignment from original equipment manufacturers, resellers, lessors and other airlines. AMS customers include the commercial air cargo industry, passenger airlines, aircraft manufacturers and contract maintenance companies serving the commercial aviation industry, as well as other resellers.

Equipment and Facility Maintenance

LGSTX provides contract maintenance services for aviation ground support equipment and facility services throughout the United States. LGSTX has a large inventory of ground support equipment, such as power units, airstarts, deicers and pushback vehicles that it rents to airports, airlines and other customers. LGSTX is also licensed to resell aircraft fuel.

The United States Postal Service

The Company’s subsidiary, LDS, manages USPS mail sort centers in Indianapolis, Dallas and Memphis. LDS provides labor for load transfer services to the USPS at two facilities under short term contracts. Additionally, LDS provides international mail forwarding services through the Miami International Airport and the Los Angles International Airport.

Flight Support

ABX offers flight crew training to customers and rent usage of their flight simulators for outside training programs. ABX has three flight simulators in operation. The Company's GFS business provides aircraft dispatch and flight monitoring to supplemental air carriers.

Airline Operations

Airline flight operations include aircraft dispatching, flight tracking and crew scheduling. Each airline performs routine inspections and airframe maintenance. Each airline’s maintenance program includes tracking the maintenance status of each aircraft, consulting with manufacturers and suppliers about procedures to correct irregularities and training maintenance personnel on the requirements of its Federal Aviation Administration (FAA)-approved maintenance program. The airlines contract with maintenance and repair organizations (MROs), including AMES, to perform heavy airframe maintenance on airframes and engines. Each airline owns and maintains an inventory of spare aircraft engines, auxiliary power units, aircraft parts and consumable items.

Company Address

Air Transport Services Group Inc

145 HUNTER DR
WILMINGTON   OH   45177
P: +1937.3825591
F: +1302.6365454

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