ATSG subsidiary ABX Air and DHL complete lease agreement

Airline Industry Information, June 2, 2009

AIRLINE INDUSTRY INFORMATION-(C)1997-2009 M2 COMMUNICATIONS

ABX Air Inc, a subsidiary of Air Transport Services Group Inc (ATSG) (NASDAQ: ATSG), has completed an agreement related to the leases of some of its aircraft with shipping company DHL, further to a memorandum of understanding entered into by the companies in March 2009.

Under the agreement DHL has options to lease from ABX Air, or an affiliate, up to four Boeing 767-200SF aircraft from 15 August 2010 through to 2015.

In return DHL will assume financial responsibility, retroactive to 31 January 2009, for ABX Air's obligations under capital leases for five Boeing 767-200PC aircraft that are currently used on DHL's US network. ATSG's balance sheet showed USD50.2m of debt and USD21.5m of net book value related to these aircraft capital leases as of 31 March 2009.

ABX Air will grant DHL up to USD10m of credit against future rent obligations for the four 767-200SFs. If DHL does not exercise its options for any of these aircraft ABX Air will pay DHL USD2.5m for each option.

((Comments on this story may be sent to aii.feedback@m2.com))