Category Archives: ATI-Air Transport International

Amazon adds 10 additional Boeing 767-300F freighters

Amazon continues to invest in ways to provide fast, free delivery for customers.

Today, the company announced an expansion of its partnership with Air Transport Services Group, Inc. (ATSG) by leasing an additional 10 aircraft to support Amazon’s growth. Amazon previously leased 40 Boeing 767 freighter aircraft in 2016, 20 of those with ATSG, all of which are now flying serving customers in the Amazon Air network.

The 10 additional cargo planes will consist of Boeing 767-300 aircraft, will be operated on Amazon’s behalf by an ATSG airline, and will join the air cargo operation over the next two years.

Amazon Air’s operation launched in 2016 supporting package delivery to the rapidly growing number of customers who love fast delivery, great prices and vast selection. With advanced algorithms and software used for capacity and route planning, the Amazon Air operation can transport hundreds of thousands of packages per day. In addition, with Amazon’s dedicated air network, Amazon is able to deliver packages to its customers faster – 40 aircraft are flying in and out of gateway operations at over 20 airports, making two-day shipping possible almost anywhere in the U.S.

Amazon will open a new Regional Air Hub next year at Fort Worth Alliance Airport, and the Air Hub at the Cincinnati/Northern Kentucky International Airport will open in 2021. Recently, Amazon also announced a gateway operation to launch in Wilmington, Ohio, in 2019 as well as an expanded operation in Rockford, Illinois. Since its launch, Amazon’s air cargo operation has invested millions of dollars and created thousands of new jobs at locations across the U.S.

Amazon has launched several initiatives to ensure fast delivery speeds and supply chain capacity for its customers, including its Delivery Service Partner program, Amazon Flex, the company’s mobile application that allows individuals to sign-up, be vetted and begin delivering for Amazon, a dedicated network of over 10,000 trailers to increase trucking capacity and, now, the expanded fleet of air cargo planes. These efforts join Amazon’s robust worldwide network of more than 185 fulfillment centers where the company uses high-end algorithms, robotics, machine learning and other technological innovations to increase delivery speeds for customers. Amazon is now bringing the same technological expertise to efforts in the transportation space to increase shipping capacity for customers.

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“Go Gold” special livery introduced on ATI’s N313AZ to fight childhood cancer

ATI (Air Transport International), which operates for Amazon Prime Air, has adorned its Boeing 767-338 ER (F) N313AZ (msn 24930) in a special “Go Gold” livery (left side only) to promote childhood cancer awareness.

2018 "go gold" special markings to promote awareness of childhood cancer

This special livery is a vinyl wrap that was applied at ATI’s hub in Wilmington, OH.  The aircraft was flown to SeaTac on Sunday for finishing touches and then flown to BFI on Labor Day.

The special livery is expected to survive for about 30 days.

Copyright Photos: Prime Air (ATI) Boeing 767-338 ER (F) N313AZ (msn 24930) (go gold) BFI (Joe G. Walker). Image: 943407.

ATI-Prime Air aircraft slide show:

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Prime Air becomes Amazon Air, fleet grows to 32 aircraft, headed to 40

Prime Air (ATI) Boeing 767-338 ER (F) N307AZ (msn 28725) ONT (Michael B. Ing). Image: 937302.

Prime Air (Seattle) is shortening its name to Amazon Air. In its holiday season recap report, Amazon announced it “celebrated its biggest holiday season” in 2017.

The growing dedicated fleet of Boeing 767-300s helped the company deliver a new record of packages this past holiday.

Amazon also announed Amazon Prime Air is now called Amazon Air. The fleet is now expected to take on new titles.

Amazon also announced the dedicated fleet had grown from 25 Boeing 767-300 freighters in July 2017 to 32 for this past holiday season. Amazon expects this number to grow to 40 by the end of this year.

Atlas Air and ATI (above) are the two main operators of the Amazon Air fleet of dedicated 767s.

Amazon is building a new cargo hub at Cincinnati/Northern Kentucky International Airport to handle the growing fleet. The companies flying the aircraft will need more pilots to fly the packages.

Top Copyright Photo: Prime Air (ATI) Boeing 767-338 ER (F) N307AZ (msn 28725) ONT (Michael B. Ing). Image: 937302.

Prime Air – ATI aircraft slide show:

However this growth is also leading to some labor issues especially with the pilots assigned to fly the deliveries. One union representing air cargo pilots has established a new website called canamazondeliver.com.

The union also issued this video:

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Aloha Air Cargo starts Los Angeles freighter service

Aloha Air Cargo's first Boeing 767-300 freighter

Aloha Air Cargo, as planned, has now started scheduled cargo service to Los Angeles from Honolulu with its first newly-acquired Boeing 767-300 freighter.

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On November 7, 2017 the company announced on social media the arrival of its first Boeing 767-300 freighter in its full livery:

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According to the airline, Aloha Air Cargo is now operating a Boeing 767-300F, with a maximum payload of 125,000 pounds, from Los Angeles International Airport on a Tuesday through Saturday rotation, departing at 2 am PST, and arriving into Honolulu International Airport at approximately 5 am HST. Return flights will operate Monday through Friday, departing Honolulu at 3:00 pm HST and arriving into Los Angeles at approximately 11:30 pm PST.

The pictured N399CM (operated by ATI), is the former N382AN of American Airlines, now converted to a freighter.

Top Copyright Photo: Aloha Air Cargo (ATI) Boeing 767-323 (F) N399CM (msn 25451) LAX (Michael B. Ing). Image: 940045.

 

ATI keeps the Cargo Cargo livery alive in a modified version

ATI-Air Transport International (Little Rock) has apparently decided to keep the Capital Cargo International Airlines (Orlando) 2011 livery alive. Like the United Airlines-Continental Airlines merger, the surviving airline has adopted the color scheme of the airline that was closed down. The airline has not yet announced this decision.

Capital Cargo was merged into ATI-Air Transport International on March 11, 2013. Founded in 1995, Capital Cargo International Airlines (CCIA) was a FAA 121 Supplemental Air Carrier. The airline operated five Boeing 727-200 and three 757-200 freighters.

In April 2013 the pictured Boeing 757-2G5 (F) converted freighter was rolled out of the paint shop at Wilmington, Ohio in the Capital Cargo brand but now with ATI-Air Transport International Airlines titles.

The ATI version now includes red and dark blue stripes below the window line (above). The Capital Cargo version had a single red stripe (below).

Top Copyright Photo: Tony Storck/AirlinersGallery.com. This former National Airlines (5th) aircraft was previously operated as N151GX and never was operated on the  Capital Cargo certificate. It was delivered to ATI on March 14, 2013.

ATI-Air Transport International: AG Slide Show

Capital Cargo International Airlines: AG Slide Show

Bottom Copyright Photo: TMK Photography. Former United Airlines Boeing 757-222 (F) N531UA (msn 25042) was the only 757 to wear the new 2011 color scheme with Capital Cargo. Notice the differences with the cheatlines. N531UA is pictured operating to Memphis.

Capital Cargo 757-200F N531UA (11)(Grd) MEM (TMK)(LRW)

ATSG reports 1Q net earnings of $8.5 million

Air Transport Services Group, Inc. (ATSG) (Wilmington, OH), the parent of ABX Air (Wilmington, OH) and ATI-Air Transport International (Little Rock and Wilmington, OH) reported consolidated financial results for the quarter ended March 31, 2013.

“We made a major investment in our combi business with the U.S. military, placed more of our Boeing 767 and 757 freighters with DHL, and completed the merger of two of our airlines during the first quarter,” said Joe Hete, President and Chief Executive Officer of ATSG. “The results were significant increases in our net income and in our Adjusted EBITDA, compared with the year-earlier quarter. Our baseline business remains solid, and we are moving quickly to capture the rest of the $5 to $6 million in merger synergies we projected a few months ago.”

For the first quarter of 2013, compared with first quarter 2012:

  • Revenues were $143.3 million, a decrease of 1.5%.
  • Total operating expenses were $126.9 million, down 3.7%, including a $3.8 million reduction in salaries, wages and benefits expense due in large part to reductions in airline related costs prior to the merger of Air Transport International and Capital Cargo International Airlines in March 2013.
  • Pre-tax income was $13.6 million, an increase of 26.5%.
  • Net earnings from continuing operations increased 27.6% to $8.5 million, or $0.13 per fully diluted share. Net earnings include a non-cash federal income tax provision. The company does not expect to pay significant federal income taxes until 2015.
  • First-quarter Adjusted EBITDA was $37.3 million, a 9.5% increase from $34.1 million in the same period of the prior year. This non-GAAP financial measure is defined and reconciled to comparable GAAP results in a table at the end of this release.
  • Capital expenditures totaled $59.4 million for the quarter, including the purchase of two 757-200 combi aircraft.

Segment Results

CAM (Aircraft Leasing)

CAM First Quarter
($ in thousands) 2013 2012 % Chg.
Revenues $ 38,969 $ 37,851 3.0
Pre-Tax Earnings 16,873 16,818 0.3

Fleet Developments:

  • On March 31, 2013, ATSG owned 47 aircraft in serviceable condition – 20 leased to external customers and 27 leased to ATSG affiliate airlines.
    • The in-service fleet consisted of forty-one 767 freighters, three 757 freighters and three DC-8 combis. A table reflecting aircraft in service is included at the end of this release.
  • On March 31, 2012, CAM owned 51 in-service aircraft, including thirty-nine 767s, three 757s, six DC-8s (two freighters, four combis) and three 727 freighters. All of the 727 and DC-8 freighters, one DC-8 combi and one 767 passenger aircraft have since been removed from service.
  • Three other aircraft – two 767-300s and one 757-200 – were undergoing passenger-to-freighter conversion as of March 31, 2013.
  • Four 757-200 combi aircraft, including one modified in 2012, one purchased in December 2012 and two purchased in January 2013, are completing certification requirements. They will enter service for the U.S. military as replacements for the three remaining DC-8 combis starting later this quarter.

ACMI Services

ACMI Services First Quarter
($ in thousands) 2013 2012 % Chg.
Revenues
Airline services $ 94,892 $ 96,342 (1.5)
Reimbursables 18,159 16,853 7.7
Total ACMI Services Revenues 113,051 113,195 (0.1)
Pre-Tax Loss (5,404 ) (8,215 ) 34.2

Significant Developments:

  • Signed agreements with DHL in January for four additional freighters, including one 757 and three 767s, to replace the 727 freighters the company operated in DHL’s U.S. domestic network.
  • Extended agreements for three 767s operating in DHL’s network in the Mideast.
  • Airline-related headcount in the first quarter decreased approximately 26% compared with the beginning of 2012, principally as a result of combining ATI and CCIA operations prior to their merger in March.
  • Four 767 freighters leased from CAM were underutilized during the quarter.

Other Activities

Other Activities First Quarter
($ in thousands) 2013 2012 % Chg.
Revenues $ 26,254 $ 28,421 (7.6 )
Pre-Tax Earnings 2,181 2,001 9.0
  • Improved first quarter pre-tax earnings were driven by greater efficiencies and higher volumes at the U.S. Postal Service facilities we operate.

Copyright Photo: Tony Storck. The three remaining McDonnell Douglas DC-8s in service have been delayed in their retirements until later this year as newer aircraft come on line. A fine study of DC-8-62 (F) N41CX (msn 46129) arriving at Baltimore/Washington.

ABX Air: AG Slide Show

ATI: AG Slide Show

The end of Capital Cargo International Airlines

Capital Cargo International Airlines (Orlando) is no more. The cargo airline was merged into ATI-Air Transport International (Little Rock) yesterday (March 11). Founded in 1995, Capital Cargo International Airlines (CCIA) was an FAA 121 Supplemental Air Carrier. The airline operated five Boeing 727-200 and three 757-200 freighters.

Parent Air Transport Services Group issued the following statement:

Air Transport Services Group, Inc. announced on March 11, 2013 the completion of the merger of two of its airline subsidiaries, Air Transport International, Inc. (ATI) and Capital Cargo International Airlines, Inc. (CCIA).

The merger creates a single airline, ATI, with its headquarters in Little Rock, Arkansas, its operations center in Wilmington, Ohio, and its management team led by ATI President ATSG President and CEO Dennis Manibusan. ATI currently operates 13 aircraft, including seven Boeing 767 freighters (five 767-200s and two 767-300s), three Boeing 757 freighters, and three DC-8 combi (combination passenger and main-deck cargo) aircraft. The three DC-8 combis are to be replaced soon with four Boeing 757 combis.

The Air Carrier Certificate for CCIA has been surrendered to the Federal Aviation Administration (FAA), and its aircraft leases and other assets transferred to ATI, following that agency’s review and approval of the technical aspects of ATI’s airline merger plan. Further, the economic authority for CCIA has been surrendered to the U.S. Department of Transportation (DOT) for cancellation.

ATSG President and CEO Joe Hete, President and CEO of ATSG, said completing the merger is an important milestone in an overall effort to make ATSG more profitable, and to better serve its customers.

“This merger is the most significant of a number of steps we are taking throughout ATSG to better fit our airline overhead and operating cost structures to the airline operations we have today, and expect to add in the future,” Hete said. “Dennis Manibusan and his teams in each company have worked hard to complete this process, and I applaud their efforts. The larger scale and strength of the new combined ATI they have created will be better prepared to support ATI’s customers, including DHL and the U.S. military, and attract new business in the months to come.”

Top Copyright Photo: Dave Campbell. Boeing 727-223 (F) N708AA (msn 22465) approaches runway 9L at Fort Lauderdale-Hollywood International Airport. The freighter is painted in the final 2011 livery.

Bottom Copyright Photo: Capital Cargo International Airlines. Boeing 757-222 (F) N531UA (msn 25042) was the only 757 to wear the new color scheme.

Capital Cargo 757-200F N531UA (11)(Grd)(Capital Cargo)(LR)

Capital Cargo logo-1

Capital Cargo International Airlines: AG Slide Show

ATI-Air Transport International: AG Slide Show