DHL Express has renewed its aircraft operating lease with Air Transport Services Group for six years and added two all-cargo jets for the contractor to fly on its behalf.
ATSG (NASDAQ: ATSG) said Tuesday it has signed a lease extension with the express carrier’s in-house airline for five Boeing 767-300 aircraft through April 2028, as well as a separate contract under which subsidiary ABX Air will provide crew, maintenance and insurance (CMI) to operate the aircraft.
DHL also expanded its CMI agreement to include two more 767 freighters for its U.S. domestic network. ATSG currently leases out eight of the 10 aircraft ABX Air operates for DHL.
DHL (DXE: DPW) agreed in May 2021 to lease four more 767 freighters from ATSG subsidiary Cargo Aircraft Management. One of them was delivered last year and the other three are scheduled for delivery in 2022, with two of them to be operated under the CMI agreement. After the three remaining lease deliveries, ATSG will operate 12 of the medium-size cargo jets, 10 of which it owns, for DHL plus two owned by by DHL. It also is supplying an additional five aircraft, which are operated by other carriers in DHL’s Middle East network (3) and in the U.K. (2) for a total of 15 aircraft under dry lease and 17 under the service contract.
ATSG, of Wilmington, Ohio, leases assets to airlines and other customers and separately offers services such as crewing, or logistics and repairs. That business model is different from the traditional aircraft, crew, maintenance and insurance in which the aircraft and the flying are bundled together in a long-term contract. In either case, flight time is billed in block hours for the amount of time operated.
Last September, DHL renewed its contract with another transportation partner, Atlas Air (NASDAQ: AAWW), to continue flying 20 large freighters in its network.
DHL, along with the rest of the express delivery industry, is experiencing unprecedented growth in cross-border e-commerce shipments. The ATSG deal ensures continued access to capacity even as the company works to augment its fleet with new production and converted freighters.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
What to Read Next:
DHL eyes major air hub expansion in US
DHL Express renews agreement with Atlas Air for 20 freighters
Amazon Airline ATSG touts red-hot business for cargo jet leases
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now