AIR Transport Services Group (ATSG) has announced that one of its subsidiaries plans to purchase 20 Boeing 767-300 passenger aircraft and convert them into freighter aircraft over the coming three years for an undisclosed price. Built between 1993 and 2003, the planes are currently operated by American Airlines Group.
The aircraft that have a range of 3,100 nautical miles and maximum payload of 125,900 pounds will be acquired from Jetran, an aircraft leasing, financing and engine modification firm, reported FreightWaves, New York.
Six of the planes will be converted next year, up to nine in 2020 and another five in 2021. An ATSG spokesman said the company hasn't yet determined how the aircraft will be deployed.
Cargo Aircraft Management, ATSG's aircraft leasing subsidiary, will purchase the planes, manage their conversion and lease them out. Based on demand, the unit may choose to lease the planes in passenger configuration to ATSG's passenger charter business service under an aircraft, crew, maintenance and insurance (ACMI).
The announcement comes as ATSG's major client Amazon has been looking for more aircraft as its delivery needs expand. Its primary air hub in Cincinnati, expected to be partly completed in 2020, will be able to accommodate up to 100 planes. Earlier this year, Amazon put out a request for proposal for six additional planes, according to the Seattle Times.
In a note, Seaport Global Securities analyst Kevin Sterling said: 'It's a matter of when, not if,' that Amazon expands its relationship with ATSG. Although, ATSG may look at other customer opportunities beyond Amazon, Mr Sterling added. The analyst expects ATSG to remain aggressive in pursuing other deals for freighter conversions.
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The aircraft that have a range of 3,100 nautical miles and maximum payload of 125,900 pounds will be acquired from Jetran, an aircraft leasing, financing and engine modification firm, reported FreightWaves, New York.
Six of the planes will be converted next year, up to nine in 2020 and another five in 2021. An ATSG spokesman said the company hasn't yet determined how the aircraft will be deployed.
Cargo Aircraft Management, ATSG's aircraft leasing subsidiary, will purchase the planes, manage their conversion and lease them out. Based on demand, the unit may choose to lease the planes in passenger configuration to ATSG's passenger charter business service under an aircraft, crew, maintenance and insurance (ACMI).
The announcement comes as ATSG's major client Amazon has been looking for more aircraft as its delivery needs expand. Its primary air hub in Cincinnati, expected to be partly completed in 2020, will be able to accommodate up to 100 planes. Earlier this year, Amazon put out a request for proposal for six additional planes, according to the Seattle Times.
In a note, Seaport Global Securities analyst Kevin Sterling said: 'It's a matter of when, not if,' that Amazon expands its relationship with ATSG. Although, ATSG may look at other customer opportunities beyond Amazon, Mr Sterling added. The analyst expects ATSG to remain aggressive in pursuing other deals for freighter conversions.
WORLD SHIPPING