ATSG revenue increase in third quarter

Air Transport Services Group (ATSG), the medium wide-body freighter aircraft lessor, saw third quarter 2015 revenues increase 3% to $142.3m, including a 6% increase in freighter aircraft leasing revenues.
Excluding revenues from reimbursements, third-quarter 2015 revenues increased 6% for the US-based lessor.
Joe Hete, president and chief executive of ATSG, said: “We advised you in August that the third quarter would be a transitional time for us, with intensive preparations to ready aircraft and services for new assignments in the fourth quarter.
“We deployed three Boeing 767 cargo aircraft under new arrangements during the third quarter, and will deploy eight others, five of those under dry lease arrangements, in the fourth quarter.”
Hete added: "We also signed commitments during the third quarter to invest in a new joint venture that will provide air express services in China and other points in Asia, starting in mid-2016 after pending regulatory approvals.
“That airline, United Star Express, will serve rapidly growing e-commerce markets from an operating base in Tianjin. We expect to be a source of leased aircraft to United Star Express as it expands over the next several years."
In his outlook, Hete said: “The market for ATSG’s scale and expertise as an innovative source of comprehensive solutions for regional air networks is expanding rapidly.
“That’s evidenced in part by our new airline joint venture in China, United Star Express, which will focus on e-commerce opportunities in Asia starting in mid-2016.”
Hete continued: “Through this new China venture and others, we will demonstrate our innovation, flexibility and speed to deliver competitive advantages to e-commerce operators.
“We look forward to allocating significantly more aircraft and operating resources toward these new opportunities in 2016.”