ATSG Statement Concerning DB Schenker Announcement

Air Transport Services Group, Inc. ATSG today released the following statement attributable to Joe Hete, President and Chief Executive Officer of ATSG: “We have been advised by our second-largest customer, DB Schenker, concerning its plans to adopt a new operating model that phases out the dedicated air-cargo network supported by our airline subsidiaries, Air Transport International, LLC and Capital Cargo International Airlines, Inc.. While we are continuing to evaluate that notice in the context of our other communications with DB Schenker, we expect a reduction in our role as a provider of main-deck freighter lift for DB Schenker in North America. “We are analyzing the continuing and one-time effects this phase-out will have on our fleet and our financial results, and will provide more information to shareholders as soon as practicable. We estimate that on an annualized basis, each of our eight DC-8 and eight 727 aircraft dedicated to the DB Schenker network generates approximately one cent per share in earnings after tax. We cannot yet determine, however, when or how many of those aircraft will be removed from DB Schenker service, nor how readily we can deploy them with other customers or otherwise realize their value. If all of the DC-8 and 727 aircraft currently dedicated to DB Schenker are eventually removed from service, we project an annual reduction in required capital maintenance expenditures of $10 to $15 million.”