Airplane lessor Air Transport Services Group has completed the merger of Air Transport International and Capital Cargo International Airlines, its two subsidiaries, forming the combined carriers under the Air Transport International banner.
ATI, which is based in Little Rock, Ark., has a fleet of 13 aircraft, consisting mostly of freighters and three combi planes. ATSG previously announced that it has no plans to purchase planes in 2013.
“This merger is the most significant of a number of steps we are taking throughout ATSG to better fit our airline overhead and operating cost structures to the airline operations we have today and expect to add in the future,” Joe Hete, ATSG president and chief executive officer, said in a statement. “The larger scale and strength of the new combined ATI they have created will be better prepared to support ATI’s customers, including DHL and the U.S. military, and attract new business in the months to come.”
In the fourth quarter of last year, earnings for ATSG's cargo-leasing arm finished at $17.7 million, up 6 percent year over year. ACMI (aircraft, complete crew, maintenance, and insurance) revenues fell by $4.7 million. - Jon Ross