Tag Archives: Air Transport International

ATI paints its Boeing 767-200 N255CM in its new modified livery

Air Transport International (ATI) made this announcement on social media:

We are excited to announce our new livery is ready to fly! This 767 with tail number N255CM arrived at ILN and will soon be departing to deliver air cargo across the U.S.!

The modified livery (new titles) is really a modified version of the previous livery that was adopted by ATI in 2013 when it incorporated the aircraft of Capital Cargo International Airlines. Capital unveiled this basic globe livery in 2011.

ATI aircraft photo gallery:

ATI aircraft slide show:

ATSG to lease 12 additional Boeing 767-300Fs to Amazon

Prime Air (ATI) Boeing 767-319 ER (F) WL N419AZ (msn 26913) ONT (Michael B. Ing). Image: 950258.

Air Transport Services Group, Inc. (ATSG), the leading provider of medium wide-body aircraft leasing, air transportation and related services, has announced an agreement to lease twelve additional Boeing 767-300 converted freighter aircraft to Amazon.com Services LLC.

One of the twelve aircraft was delivered on May 29, 2020 and the remaining eleven will be delivered in 2021. All twelve will be leased to Amazon for ten years, with options for Amazon to extend the leases for three additional years.

Cargo Aircraft Management (CAM), ATSG’s aircraft leasing subsidiary, currently leases twenty-seven 767 aircraft to Amazon, including six leased during 2019. In December 2018, Amazon committed to lease those six plus an additional four 767s from CAM by the end of 2020. The agreement announced today increases the projected number of 767s CAM will have leased to Amazon to 31 by the end of 2020 and to 42 by the end of 2021.

Widebody Boeing 767 freighters have become the preeminent midsize component of regional air-cargo networks over the last ten years, and ATSG is the world’s largest lessor of that aircraft type. ATSG expects to end 2020 with seventy-eight owned 767 freighter aircraft in operation, seventy-one of which will be leased to eleven external customers.

 

Note: The aircraft will be operated by ATI. ATI is a subsidiary of Air Transport Services Group, Inc.

ATI was founded in 1978 as US Airways. In January 1980 the airline (renamed Interstate Airlines) became an FAR Part 121 certificated all-cargo airline flying Convair 580s. Its fleet quickly expanded to include Lockheed L-188 Electra, Boeing 727, and McDonnell-Douglas DC-8 aircraft. The airline flew freight domestically for Purolator, Emery, and ad hoc charters. In 1984 the airline began flying internationally. It moved its headquarters from Michigan to Arkansas. In 1988 the airline adopted its current name.

Through the 1990s and 2000s ATI hauled freight for the Military Airlift Command (Air Mobility Command), UPS, Emery Air Freight, Burlington Air Express, DHL, and Zantop International Airlines. The airline had over 500 employees and operated 32 DC-8s. As a long-term member of the Civil Reserve Air Fleet (CRAF), ATI was among the airlines activated in 1990 to support Operations Desert Storm and Desert Shield and received several commendations for its performance.

In October 1994, ICX International Cargo Express was merged with ATI. The airline was purchased by BAX Global, an operating unit of the Brink’s Company, in February 1998.

In 2006, ATI was sold to Cargo Holdings International, Inc. (CHI), which was itself acquired by ABX Holdings, Inc. the following year. In 2008, parent company ABX Holdings was renamed Air Transport Services Group, Inc. (ATSG). ATI added its first Boeing 767 in 2008.

In March 2013, Capital Cargo International Airlines was merged with ATI. During the same year, ATI replaced its DC-8 Combi aircraft with more modern Boeing 757 Combi aircraft.

Today, the airline’s fleet consists exclusively of Boeing 767 and 757 aircraft, allowing all of its flight crews to share a common type rating.

The company’s principal customers today include the US military, DHL, and Amazon Fulfillment Services, Inc. (Prime Air).

Top Copyright Photo: Prime Air (ATI) Boeing 767-319 ER (F) WL N419AZ (msn 26913) ONT (Michael B. Ing). Image: 950258.

Prime Air-ATI aircraft slide show:

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

 

Air Transport International (ATI) to retire the last McDonnell Douglas DC-8 in early 2013

ATI-Air Transport International (Little Rock and Toledo) is planning to retire its last McDonnell Douglas DC-8 from its operations in early 2013. Parent Air Transport Services Group is acquiring three Boeing 757-200 combi aircraft to replace the remaining four ATI DC-8s in early 2013 via Cargo Aircraft Management (CAM).  ATSG issued this statement:

Air Transport Services Group, Inc. said 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.

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.

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.

ATI Fleet Overview: CLICK HERE

ATI logo-1

Copyright Photo: Antony J. Best. McDonnell Douglas DC-8-73 (F) N602AL (msn 45991) arrives at Stansted Airport north of London.

ATI-Air Transport International: AG Slide Show