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ATSG Subsidiary PEMCO Wins Three-Year Maintenance Contract with Frontier Airlines

Aviation maintenance and engineering company PEMCO World Air Services (PEMCO), a wholly owned subsidiary of Air Transport Services Group, Inc. (NASDAQ:ATSG), has secured a three-year maintenance agreement with U.S.-based low-cost carrier Frontier Airlines covering Frontier’s expanding fleet, consisting today of more than 60 Airbus A320-family passenger aircraft.

“PEMCO has proven to be a first class Airbus maintenance provider and is more than capable of supporting our needs for the foreseeable future,” said Jim Mach, Frontier Airlines’ Director of Maintenance.

PEMCO General Manager Pastor Lopez said, “As Frontier continues to expand, we look forward to the opportunity to grow with them. Utilizing our Lean processes, we’ll continue to provide Frontier with award-winning quality and on-time service.”

Maintenance services will be performed primarily at PEMCO’s maintenance facilities at the Tampa International Airport. The agreement builds on a relationship with Frontier that started in 2015 with PEMCO’s interior modifications to Frontier’s A319s and A320s, which earned PEMCO the prestigious Tech Ops Business Partner Excellence Award from Frontier.

In 2016, Frontier awarded PEMCO a contract for heavy maintenance, drop-in, on-call and away maintenance support for Frontier’s fleet, which now comprises more than 60 Airbus A319, A320, and A321 aircraft, and is expanding via Frontier’s orders for more than 60 additional A320-family aircraft. The new three-year agreement covers heavy checks, induction checks, exit checks, drop-in maintenance, on-call maintenance, and away maintenance, and includes options for extension in two one-year intervals.

Chris Johnson, Manager of MRO Sales for PEMCO, said, “This new contract further deepens our partnership with Frontier. It’s a testament to our team and their hard work over the past two years.”

Headquartered in Denver, Frontier Airlines serves more than 55 cities in the United States, Mexico, the Dominican Republic, and Cuba on more than 275 daily flights. The carrier recently announced the addition of Puerto Rico to its route map and will launch service to San Juan on June 11, offering nonstop flights from both Philadelphia and Orlando.

About PEMCO World Air Services

PEMCO World Air Services, an Airborne Maintenance and Engineering Services (AMES) company, serves customers from airlines to private operators. Having developed over 70 STCs and modified over 350 aircraft and with conversion partnerships in China, Costa Rica and Canada, PEMCO’s cargo conversion program is the global leader in narrow-body passenger-to-freighter aircraft conversions. PEMCO and AMES, wholly-owned subsidiaries of Air Transport Services Group (NASDAQ:ATSG), offer 320,000 sq. ft. of hangar space in Tampa, Fla. and 315,000 sq. ft. of hangar space in Wilmington, Ohio. Together, they provide a range of services to the aviation sector including heavy maintenance, line maintenance, cargo conversions, engineering services, material sales and manufacturing. Combining the maintenance experience as an Airborne Maintenance and Engineering Services company with industry-leading conversion capacity, PEMCO World Air Services is a leading provider of services for Boeing and Airbus fleets. For more information, please visit PEMCOAIR.com or AIRBORNEMX.com.

About Air Transport Services Group

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., including its division, PEMCO World Air Services, Inc. For more information, please see www.atsginc.com.

Contacts:

PEMCO World Air Services
David Gray, Marketing Manager, 813-322-9600 x 9507
david.gray@pemcoair.com

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