Air Freighters May Take More Prominent Role in Supply Chain

While “modest” growth for 2015 is forecasted by most air cargo industry insiders, Wilmington, Ohio-based freighter lessor Air Transport Services Group (ATSG) is far more bullish.

Indeed, executives here are predicting double-digit growth for the sector this year.

“ATSG’s principal businesses made significant progress in 2014, as our leasing unit grew its portfolio of multi-year dry leases by 20 per cent, to 24 aircraft, says Joe Hete, ATSG president and chief executive.

Airlines lease aircraft from other airlines or leasing companies for two main reasons: to operate aircraft without the financial burden of buying them, and to provide temporary increase in capacity.

Wet-leasing is normally used for short-term leasing, and dry-leasing is more normal for the longer-term. The industry also uses combinations of wet and dry.

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