ATSG completes merger of ATI and Capital Cargo International

Washington DC
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Air Transport Services Group has finalised the merger of its two cargo operators, Air Transport International and Capital Cargo International Airlines.

The newly-merged airline will keep a headquarters in Little Rock, Arkansas and an operations centre in Wilmington, Ohio.

The combined fleet will consist of five Boeing 767-200s, two Boeing 767-300 freighters, three Boeing 757 freighters and four 757 combis. The 757 combi aircraft will replace three Boeing DC-8 combis by mid-year, which have all been retired.

ATI continues to hold the carrier's operating certificate, and CCIA's assets have been moved to ATI's operation.

ATSG has been implementing management changes and consolidating offices to prepare for the merger for more than a year. ATSG made the decision to merge CCIA into ATI after it lost business from its second-biggest customer D.B. Schenker, which shed its air freight activities within the USA as part of a restructuring plan announced in July 2011.

ATSG plans to see annual savings of between $5 and 6 million from merging the two operations, a bulk of which will come from staff reductions, said ATSG chief Joseph Hete on a 28 February analyst call. In December, CCIA sent layoff notices to 79 employees at its Orlando operation and said that about half of CCIA's staff would move to the Little Rock location.

Hete added that the cargo airline does not plan to lose any business from the merger. A majority of CCIA's flying is performed on behalf of DHL.