ABX Air Labor Dispute to be Resolved Via Arbitration

Air Transport Services Group, Inc. (NASDAQ:ATSG) today said that Judge Timothy S. Black of the U.S. District Court for the Southern District of Ohio has ordered that the dispute between ATSG’s cargo airline, ABX Air, and its pilot employees represented by the International Brotherhood of Teamsters, Airline Division; and the Airline Professionals Association of the International Brotherhood of Teamsters, Local 1224 (collectively, the “IBT”), is a minor dispute under the Railway Labor Act and should be resolved through the grievance and arbitration process contained in the parties current labor agreement.

John Starkovich, President of ABX Air, said that the airline will continue discussions with IBT representatives about resolving differences over pilots’ ability to determine compensatory time for extra flying at premium pay levels, versus ABX Air’s need to adequately crew its freighter aircraft with pilots during the peak holiday period.

“We welcome the opportunity to work with the pilots’ union in ensuring that our pilots maintain scheduling flexibility while at the same time ensuring that ABX Air has sufficient flight crews available to meet the needs of its customers,” Starkovich said. “I look forward to a prompt and fair resolution of these issues under our current labor agreement.”

About ATSG

ATSG is a leading provider of aircraft leasing and air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements. ATSG, through its leasing and airline subsidiaries, is the world's largest owner and operator of converted Boeing 767 freighter aircraft. Through its principal subsidiaries, including two airlines with separate and distinct U.S. FAA Part 121 Air Carrier certificates, ATSG provides aircraft leasing, air cargo lift, aircraft maintenance services and airport ground services. ATSG's subsidiaries include ABX Air, Inc.; Airborne Global Solutions, Inc.; Air Transport International, Inc.; Cargo Aircraft Management, Inc.; and Airborne Maintenance and Engineering Services, Inc. For more information, please see www.atsginc.com.

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