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29-515: Air Transport Services Group , Inc. announced on 9 December 2013 an agreement to acquire a 25 percent equity interest in West Atlantic. This investment meant the Boeing 767-200 being added into West Atlantic's fleet. The 767-200 with registration SE-RLA made its first flight on 26 March 2015, and its first commercial flight on the night between 6 and 7 April, with two further 767-200s joining

58-414: A finance lease . A wet lease is a leasing arrangement whereby one airline (the lessor ) provides an aircraft, complete crew, maintenance, and insurance (ACMI) to another airline or other type of business acting as a broker of air travel (the lessee ), which pays by hours operated. The lessee provides fuel and covers airport fees, and any other duties, taxes, etc. The flight uses the flight number of

87-600: A 25 percent equity interest in West Atlantic . ABX Holdings, Inc. was created on 31 December 2007 when ABX Air purchased Cargo Holdings International. On 16 May 2008, the company changed its name to Air Transport Services Group . In March 2016, ATSG announced an agreement to operate an air cargo network to serve Amazon.com customers in the United States including the leasing of 20 Boeing 767 freighter aircraft by ATSG subsidiary Cargo Aircraft Management;

116-520: A B737-8 can be leased for slightly more than $ 385,000 per month and a 12 year term with a good credit can be lower than $ 370,000 per month for an A320neo (0.74% of its around $ 49 million capital cost ), generating $ 53 million of revenue and over $ 8.5 million in an end of lease compensation for maintenance , while still being worth $ 20 million. Airlines which cannot afford a good deal on factory direct aircraft or carriers who prefer to maintain flexibility can lease their aircraft with an operating lease or

145-627: A Boeing 767-300 converted freighter in June in support of the DHL Express network in Asia under the terms of a stand-alone ACMI agreement with DHL-Bahrain. In May 2021, ATSG and Fort Lauderdale aerospace firm GA Telesis announced a joint venture to establish an Engine Services facility in the United States; GA Telesis had previously constructed an engine facility at Helsinki Airport in Finland. It

174-457: A cash equity investment of $ 132 million. In January 2017, ATSG announced it had acquired Tampa, Florida-based PEMCO World Air Services, a commercial aircraft maintenance, repair & overhaul provider and Boeing 737 passenger-to-freighter conversion house. On October 2, 2018, ATSG announced that it had agreed to acquire Omni Air International LLC (Omni Air) based in Tulsa, Oklahoma. Omni Air

203-571: A compound annual growth rate ( CAGR ) of 4.1%. A dry lease is a leasing arrangement whereby an aircraft financing entity (lessor), such as AerCap or Air Lease Corporation , provides an aircraft without crew, ground staff, etc. Dry lease is typically used by leasing companies and banks, requiring the lessee to put the aircraft on its own air operator's certificate (AOC) and provide aircraft registration. A typical dry lease lasts upwards of two years and bears certain conditions with respect to depreciation, maintenance, insurances, etc., depending also on

232-584: A dry lease. In some markets, there may also be hybrid models, such as with crew provided by lessees. Operating leases of jet airliner accounted for less than 2% of the fleet in 1976, then 15% in the early 1990s, 25% in 2000 and 40% in 2017, with lessors involved in 62% of second hand mid-life aircraft transactions since 2000: 42% in Europe and 29% in North America. In 2015, over $ 120 billion worth of commercial aircraft were delivered worldwide and half of

261-492: A form of charter whereby the lessor provides minimum operating services, including ACMI, and the lessee provides the balance of services along with flight numbers. In all other forms of charter, the lessor provides the flight numbers. Variations of a wet lease include a code share arrangement, a block seat agreement, and a capacity purchase agreement. Wet leases are occasionally used for political reasons. For instance, EgyptAir , an Egyptian government enterprise, for many years

290-484: A larger aircraft requires. Reconfiguring an Airbus A330 -300 can cost $ 7 million and even more for a Boeing 777 -300ER or an Airbus A380 : introducing IFE - $ 1.5 million ($ 5,000 per seat), replacing business seats - $ 1.5 million ($ 30,000 each), replacing economy seats - $ 1 million ($ 5,000 each), a new lavatory or galley - $ 100,000, moving a monument - $ 35,000, class dividers - $ 50,000, passenger service units - $ 9,000 per passenger, sidewall panels - $ 6,000 each, updating

319-403: A variety of private sector customers and government services firms. Omni Air, founded in 1993, is an FAR Part 121 certificated and IATA Operational Safety Audit registered airline. In December 2018 it was announced that additional agreements to lease and operated ten additional Boeing 767s for Amazon.com Services, Inc., to extend leases for twenty 767 aircraft ATSG provides to Amazon and extend

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348-499: Is a passenger ACMI and charter services provider with significant experience serving U.S. and allied foreign governments plus commercial customers. They are a leading provider of passenger airlift services to the U.S. Department of Defense (DoD) via the Civil Reserve Air Fleet (CRAF) program, and a worldwide provider of full-service passenger charter and ACMI services. Omni Air also carries passengers worldwide for

377-420: The 150 lessors are managing 8,400 aircraft worth $ 256 billion with 2,321 aircraft on backlog from 28 of them, their penetration having stabilised at 42.6%. Aircraft lessors are often banks, hedge funds or financial institutions. Aircraft financing is a $ 140 billion industry, dominated by Ireland due to the rise and collapse in 1992 of pioneer Guinness Peat Aviation (GPA), of which the former executives manage

406-412: The 50 largest in 2017, led by ICBC leasing in the top ten, having the value of their managed fleet grew by 15% since 2016. In a few cases, Chinese lessors forgot they had to get secondary leases and missed the redelivery timing, stranding aircraft for a few months. Rentals are often anchored to LIBOR rates. A320neo and B737 MAX 8 lease rates are $ 20-30,000 higher than their predecessors: by 2018,

435-525: The US. DHL has a joint venture in the United States with Polar Air Cargo , a subsidiary of Atlas Air , to operate their domestic deliveries. In the United Kingdom, a wet lease refers to an aircraft lease in which the aircraft is operated under the air operator's certificate (AOC) of the lessor. An arrangement where the lessor provides the aircraft, flight crew and maintenance but the lessee provides

464-1080: The West Atlantic group fleet includes the following aircraft: Air Transport Services Group Air Transport Services Group Inc. ( ATSG ) is an American aviation holding company which provides air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements. ATSG, is the world's largest lessor of converted Boeing 767 freighter aircraft through its leasing division, Cargo Aircraft Management. Through its principal subsidiaries, including three airlines with separate and distinct U.S. FAA Part 121 Air Carrier certificates, ATSG provides aircraft leasing, air cargo lift, passenger ACMI and charter services, aircraft maintenance services and airport ground services. ATSG's subsidiaries include Cargo Aircraft Management; ABX Air ; Air Transport International ; Omni Air International , Airborne Global Solutions; Airborne Maintenance & Engineering Services , including its subsidiary, Pemco Conversions dba Pemco World Air Services; and LGSTX Services. ATSG owns

493-577: The cabin crew is sometimes referred to as a "damp lease", a term especially used in the UK ; it is also occasionally referred to as a "moist lease". In the UK, a dry lease is when an aircraft is operated under the AOC of the lessee. At the end of July 2015, the top 50 aircraft lessors managed 8,184 aircraft: 511 turboprop regional airliners , 792 regional jets , 5,612 narrowbody and 1,253 widebody airliners. In 2017,

522-460: The financial burden of buying them, as well as to provide temporary increase in capacity. The industry has two main leasing types: wet-leasing, which is normally used for short-term leasing, and dry-leasing which is more normal for longer-term leases. The industry also uses combinations of wet and dry. For example, when the aircraft is wet-leased to establish new services, then as the airline's flight or cabin crews become trained, they can be switched to

551-403: The fleet later in 2015. On 20 June 2017, West Atlantic announced it will take delivery of four leased Boeing 737-800(BCF) from GE Capital Aviation Services , with the aircraft being delivered between 2017 and 2019. On 10 April 2019, LUSAT Air S.L. signed an agreement with West Atlantic to become the new majority shareholder in return for a €20 million cash injection. As of September 2024,

580-406: The geographical location, political circumstances, etc. A dry-lease arrangement can also be made between a major airline and a regional airline , in which the major airline provides the aircraft and the regional operator provides flight crews, maintenance and other operational aspects of the aircraft, which then may be operated under the major airline's name or some similar name. A dry lease saves

609-903: The global lessors were based in Ireland . Having an aggressive growth mandate, more aggressive, smaller entrants have overpaid for many of their assets in the sale and leaseback market and are then undercharged on lease rates in order to win the business, with lower maintenance reserves and return conditions: lease-rate factors have fallen to 0.6% per month (7.2% per year), even reaching 0.55% (6.6% per year). Despite Air Berlin and Monarch Airlines bankruptcies, their leased aircraft have been rapidly placed at "normal market rates" due to traffic growth as global revenue passenger kilometers are up by 7.7% over one year through September 2017, and Airbus struggles to deliver A320neos due to engine supply delays. In 2007, Beijing allowed Chinese banks to start leasing units, and nine Chinese lessors were part of

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638-457: The largest lessors: Aengus Kelly is the CEO of AerCap , the world's largest, Domhnal Slattery heads the third largest, Avolon , and Peter Barrett runs the fourth, SMBC Aviation Capital while the second largest, GECAS , formed from the hulk of GPA. Lessors have a preference for narrowbodies over widebodies due to more remarketing opportunities and the substantial reconfiguration time and cost

667-427: The lessee. A wet lease generally lasts 1–24 months. A wet lease is typically utilized during peak traffic seasons or annual heavy maintenance checks , or to initiate new routes. A wet-leased aircraft may be used to fly services into countries where the lessee is banned from operating. It can also be used to replace unavailable capacity or to circumvent regulatory or political restrictions. They can also be considered

696-488: The major airline the expense of training personnel to fly and maintain the aircraft, along with other considerations (such as staggered union contracts, regional airport staffing, etc.). FedEx Express uses an arrangement of this type for its feeder operations, contracting to companies such as Empire Airlines , Mountain Air Cargo , Swiftair , and others to operate its single and twin-engined turbo-prop "feeder" aircraft in

725-506: The operating agreement through which ATSG's airline operate those aircraft in the Amazon Network. On February 24, 2020, CEO Joe Hete announced his retirement effective on May 7, 2020, after 40 years of service to ATSG and its subsidiary companies. On May 7, 2020, Joe Hete was elected as chairman of the board for ATSG and Rich Corrado was elected CEO and President of ATSG. In June 2020, Air Transport Services Group, Inc. has deployed

754-457: The operation of the aircraft by ATSG airline, Air Transport International ; and gateway and logistics services provided by LGSTX Services. The 20 leases will be for five to seven years and operations agreements are for five years. ATSG will also grant Amazon warrants to soon buy 9.99% and up to 19.9% over a five-year period of ATSG common shares. May 2021, Amazon.com exercised ATSG warrants it holds to acquire 19.5% of their common shares, including

783-852: The repair facility. By November 2023, the Wilmington SPAH would receive certification from the American FAA , and later the European Union's EASA in April 2024, initially servicing aircraft engines manufactured by GE Aerospace and CFM International . In November 2024, the company announced it had reached an agreement to be acquired by Stonepeak . Aircraft, Crew, Maintenance and Insurance Aircraft leases are leases used by airlines and other aircraft operators. Airlines lease aircraft from other airlines or leasing companies for two main reasons: to operate aircraft without

812-559: Was later announced in 2022 that the Wilmington Air Park in Clinton County, Ohio , was selected to be the site of a Special Procedures Aeroengine Hospital (SPAH). ATSG and GA Telesis received a 1.3 percent tax credit designated for job creation from Ohio's tax credit authority, with JobsOhio also providing financial assistance for the construction, estimating that 50 new high-paying jobs would come to Wilmington through

841-462: Was not allowed to fly to Israel under its own name, as a matter of Egyptian government policy. Hence Egyptian flights from Cairo to Tel Aviv were operated by Air Sinai , which wet-leased from EgyptAir to circumvent the political issue. In 2021, Egypt changed its policy and EgyptAir started operating flights to Israel under its own banner. The global wet lease market is projected to grow from US$ 7.35 billion in 2019 to US$ 10.9 billion in 2029,

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