Air Transport Services Group Inc

We are a leading provider of aircraft leasing and air cargo transportation and related services in the United States and internationally and are the largest lessor of freighter aircraft in the world. In addition, we are the largest provider of passenger charter service to the United States Department of Defense ("DoD") and other governmental agencies. Our portfolio of freighter aircraft is focused on mid-sized air freighters, which is the category of choice for express and e-commerce driven regional air networks operating both within and outside the United States. Approximately 94% of our freighter fleet are Boeing 767 aircraft, which is highly sought because of its reliability, cubic cargo capacity and durable performance. We have also launched a joint venture to convert Airbus A321 passenger aircraft into freighters, which is intended to further support our ability to meet the growing demand worldwide for narrow body air freighters. (When the context requires, we may use the terms "Company," "we," "our" and "ATSG" in this report to refer to the business of Air Transport Services Group, Inc. and its subsidiaries on a consolidated basis.)

Through our subsidiaries, we own and lease aircraft to external customers and to our own airline subsidiaries. In addition, we provide airline operations, ground handling services, aircraft maintenance and modification services, and other support services to the air transportation and logistics industries. Our customers consist of delivery businesses, freight forwarders, ecommerce companies, airlines and governmental agencies. We believe our ability to offer our customers a bundle of customized and differentiated services, including aircraft leasing, airline express operations, line and heavy maintenance, freighter conversions, material handling equipment and ground handling services makes us unique from other service providers in the air transportation industry. Through our decades of experience with express network airline operations, we offer best in class, reliable services to customers including Amazon.com, Inc. ("Amazon"), DHL Network Operations (USA), Inc. and its affiliates ("DHL"), and United Parcel Service.

We are a leader in an industry with established barriers to entry, possessing reliable airlift capability, and strategic alignment with our key customers. We are unique in our ability to offer a broad range of integrated, operational solutions to air cargo and express package transportation companies and e-commerce companies, as well as charter passenger transport to governmental and commercial entities. Our services are tailored to the needs of the customer and include a combination of aircraft, crews and maintenance services as well as aircraft charter and lease transitioning services. We also offer a broad range of ancillary services including engineering services, sort and gateway operations, equipment installation, maintenance and leasing, and aircraft modifications. Our differentiated business model reduces our exposure to trade disruption and cyclical GDP, with limited payload and fuel risk. We believe that the wide scope of our services combined with our ability to provide services in a customized bundle to meet the requirements of each customer gives us a competitive advantage over other companies in our industry.