ATSG debt cut after DHL agreement

Air Transport Services Group (ATSG), owner of cargo airlines and an aircraft maintenance subsidiary, has completed an agreement with DHL that will reduce ATSG’s debt principal by $113m.

Air Transport Services Group (ATSG), owner of cargo airlines and an aircraft maintenance subsidiary, has completed an agreement with DHL that will reduce ATSG’s debt principal by $113m.

The agreement removes some limitations on the ability of ATSG’s board of directors to consider dividend payments for shareholders, said Joe Hete, president and CEO.

The agreement concerning leases for aircraft of ABX Air, one of ATSG’s companies, grants DHL options to lease up to four Boeing 767-200SF freighters for terms running between 15 August 2010, through to 2015.

ATSG said that DHL would assume financial responsibility, retroactive to 31 January, for ABX Air’s obligations under leases for five other Boeing planes currently dedicated to DHL’s US cargo delivery network.

ABX Air flies cargo under contract to DHL and operates DHL’s US cargo hub at Wilmington.