Air Transport Services Group (ATSG) has decided to sell Omni Air International, its passenger charter subsidiary, as part of a strategy to concentrate resources on air cargo operations.

The move marks a significant portfolio shift for ATSG, the Ohio-based holding company whose businesses span cargo aircraft leasing, airline operations, and MRO services. Omni Air International, based in Tulsa, Oklahoma, operates passenger charter flights for both commercial customers and the US government, including military transport contracts.

ATSG's core business has long centred on freighter aircraft — notably the Boeing 767 and Airbus A321 freighter families — through its leasing arm and its airline subsidiaries, which include ABX Air and Air Transport International. The decision to divest Omni Air signals that management sees greater value in deepening this cargo franchise than in maintaining a passenger charter operation alongside it.

The sale follows a broader reshaping of ATSG. The company agreed in late 2024 to be acquired by Stonepeak, an infrastructure investment firm, in a transaction valuing ATSG at approximately $3.1 billion including debt. That take-private deal closed in 2025, and the Omni divestment represents a further step in streamlining the group around its freighter leasing and cargo flying activities.

Omni Air's fleet consists of Boeing 767-300ER passenger aircraft, a type that shares commonality with the freighter conversions central to ATSG's cargo business. The charter carrier has served customers including the US Department of Defense, tour operators, and other commercial clients requiring widebody passenger capacity.

For ATSG, shedding the passenger charter unit frees capital and management attention for the cargo market, where demand drivers include e-commerce growth and sustained freighter capacity needs. ATSG has positioned itself as a leading lessor and operator of converted freighters, with the 767-300 freighter as a workhorse of its fleet and the A321-300 freighter as its narrowbody growth platform.

The company has not disclosed a buyer or a timeline for completing the sale, nor the financial terms under discussion. The transaction will require customary regulatory review once an agreement is reached.

ATSG's leadership has framed the decision as a sharpening of strategic focus rather than a retreat, arguing that the cargo business offers stronger long-term growth prospects than passenger charter flying, which is more exposed to cyclical travel demand and competitive tendering for government work.

Industry observers will watch how the divestment affects Omni Air's government contract portfolio and whether the buyer preserves the carrier's Department of Defense business. For ATSG's remaining airline units, ABX Air and Air Transport International, the change consolidates the group's operational footprint around freighter flying for customers including integrated express carriers and e-commerce logistics providers.

The sale process is expected to draw interest from charter operators and private equity buyers seeking established widebody capacity with US government security clearances. Any transaction would mark the end of ATSG's multi-year ownership of Omni Air, which the group acquired in 2019 as part of its diversification into passenger operations.

ATSG has not stated what proceeds it expects from the sale or how it intends to redeploy the capital within its cargo leasing and operations businesses. The company's next financial disclosures may provide detail on transaction progress and the strategic rationale management attaches to exiting passenger charter flying.