ATSG announces new agreements between its subsidiaries and DHL.
Air Transport Services Group Inc (ATSG) (NASDAQ:ATSG), a provider of air cargo transportation and related services, announced on Tuesday that it has entered into new long-term agreements with logistics company DHL.
Under these agreements ATSG's subsidiaries will continue to provide aircraft and operating support to the US portion of DHL's international logistics network.
The agreements include a new five-year Air Transportation Services Agreement between ATSG's subsidiary ABX Air and DHL, under which ABX will continue to provide Boeing 767 aircraft operating support to the US part of DHL's international logistics network on a mainly fixed price basis. This agreement covers crew, aircraft maintenance and insurance (CMI) service necessary to initially operate 13 scheduled Boeing 767 aircraft in DHL's domestic cargo network until March 2015, with an option for the agreement to be extended to March 2020.
The other main agreement is a seven-year lease deal between ATSG's aircraft leasing subsidiary Cargo Aircraft Management (CAM) and DHL. This covers 13 Boeing 767 freighter aircraft, including four aircraft which DHL held an option to lease under an agreement from June 2009. Seven of the 13 leases will become effective in April 2010 and all are expected to be in place by April 2011.
ABX Air and DHL also agreed to terminate their current ACMI agreement, which took effect on 15 August 2003 and was due to expire on 15 August 2010.
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|Publication:||Airline Industry Information|
|Date:||Mar 31, 2010|
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