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ATSG subsidiaries to convert two B737-400 aircraft for China-Based airline

Air Transport Services Group’s subsidiaries have acquired two Boeing 737-400 aircraft and will convert them to freighter configuration for lease to China-based Okay Airways.

ATSG West Leasing Limited, an aircraft leasing company based in Ireland and a wholly owned ATSG subsidiary, has acquired and will lease the aircraft to Okay in late 2017 for terms of seven years. PEMCO World Air Services, another wholly owned ATSG subsidiary, will convert the 737-400s to freighters this summer at PEMCO’s facilities at the Tampa International Airport.

Brad Heath, Managing Director of ATSG West Leasing, said, “We are very pleased to acquire, convert and lease these aircraft into the air express market in China. This initiative leverages the core capabilities of PEMCO, ATSG West Leasing and of our strategic partners in China.”

Okay Airways will operate the aircraft in support of its express services for e-commerce and other companies in the domestic China market. ATSG, Okay Airways, and Tianjin Dongjiang Investment holdings, a Tianjin government affiliate, are establishing a joint venture company to support the growing e-commerce market there.

Mike Andrews, PEMCO’s director of conversion programs, said, “We’re excited to be working with our affiliate ATSG West Leasing Limited and to be redelivering more PEMCO-converted aircraft into the Chinese market.”

Date: April 12, 2017

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