ATSG to realise 4m in savings from merged carriers

Washington DC
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Air Transport Services Group (ATSG) says it should start to realise cost savings between January and February of 2013 tied to closing down Capital Cargo International Airlines (CCIA) and merging it into Air Transport International.

ATSG's executives were speaking on an investor conference call 9 October.

ATSG plans to realise $4 million in annual cost savings from the reorganisation. The carriers previously operated separately and served D.B. Schenker, a logistics company that decided to shed its air freight activities in 2011. The company had been ATSG's second-largest customer.

ATSG says it will seek to surrender CCIA's operating certificate by Febraury 2013. It says most of the costs will be related to selling, general and administrative expenses that were duplicative.