Air Transport Services Group, Inc. (NASDAQ:ATSG) said today that its
contracts to manage three U.S. Postal Service sort facilities in
Indianapolis, Dallas and Memphis have been renewed for two more years.
Under the new agreements with ATSG business unit LGSTX Distribution
Services, Inc., the Postal Service pays LGSTX a fixed amount, plus
additional amounts based on the volume of mail handled. ATSG has managed
the Indianapolis center since 2004 and the Memphis and Dallas facilities
since 2006. Combined annual revenues from all three agreements are
expected to be approximately $24 million, an increase of about 10
percent from last year.
Gary Stover, president of LGSTX, said, "Our 30 years of experience in
managing hub operations for Airborne, Inc. and DHL have allowed us to
develop excellent work processes, reporting systems and contingency
planning. We are pleased to extend our business relationship with the
Postal Service into 2014, and hope to find additional ways to support
them in the future."
ATSG is a leading provider of aircraft leasing and air cargo
transportation and related services to domestic and foreign air carriers
and other companies that outsource their air cargo lift requirements.
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, LLC; Cargo
Aircraft Management, Inc.; Capital Cargo International Airlines, Inc.;
and Airborne Maintenance and Engineering Services, Inc. For more
information, please see www.atsginc.com.
Quint O. Turner, Chief Financial Officer, 937-382-5591