ATSG subsidiary swoops on MRO and conversion firm Pemco

Aircraft conversion firm Pemco has been bought by Airborne Maintenance and Engineering Services, a subsidiary of Air Transport Services Group (ATSG).
ATSG, which runs an air cargo operation for Amazon through its ABX subsidiary, said the acquisition will allow for a number of strategic benefits through combining operational strengths, expanded capabilities and cost savings related to shared services between the companies.
"The services of the combined AMES/PEMCO businesses will be marketed worldwide to customers as part of a comprehensive set of ATSG solutions, as well as to the ATSG affiliates," ATSG said.
Services will be offered from multiple locations, including Wilmington and Tampa for heavy maintenance and modifications, and Tampa, Central America and Asia for passenger-to-freighter conversions.
Additional service offerings of aircraft-on-ground field teams, line and turnaround maintenance, component repair and overhaul, engineering repair and design, and extensive manufacturing and kitting capabilities, will be extended from various locations.
ATSG President and chief executive Joe Hete said: “Based on PEMCO’s existing domestic and international scale, this acquisition will expand access to maintenance service for customers of ATSG’s expanding fleet of Boeing 767 cargo aircraft.
"It is consistent with our goal to diversify ATSG’s revenue and earnings, for an investment in the same price range as our planned and completed stakes in cargo airlines in China and Europe.
"The combination of PEMCO’s conversion and MRO sales of both Airbus and Boeing products with AMES’ existing offerings will create a sustained, growth-oriented aircraft maintenance product and services portfolio.”
Hete added that based on ATSG’s current estimates and outlook, the PEMCO acquisition is expected to be accretive to ATSG’s earnings starting in 2017.
Advisers to PEMCO included Canaccord Genuity Inc. as financial adviser and Morgan, Lewis & Bockius LLP as legal adviser. Advisers to ATSG included Vorys, Sater, Seymour & Pease LLP as legal adviser.

Share this story

Related Topics

Latest americas news

Air Inuit takes delivery of 737-800 freighter

Air Inuit has added a Boeing 737-800 converted freighter to its fleet as part of its fleet modernisation programme. The…

Read More

Share this story

Textron Aviation delivers first combi Cessna SkyCourier

Textron Aviation has delivered the first ever Cessna SkyCourier twin-engine utility turboprop equipped with a Combi interior conversion option. The…

Read More

Share this story

AeroUnion and Avianca Cargo start building A330-300P2F capacity

AeroUnion has added an Airbus A330-300 passenger to freighter (P2F) aircraft to its fleet which will also benefit Avianca Cargo…

Read More

Share this story

Air Cargo News

Air Cargo News
Established in 1983, Air Cargo News is the leading source of news, information, interviews, analyses and reports to the global airfreight industry. Our leading portfolio includes print, digital and events that give businesses in the airfreight industry the ability to connect with decision-makers in this sector.