Amazon is moving into the air cargo business after signing a deal to lease 20 Boeing 767 freighters from Air Transport Services Group.
“We offer Earth’s largest selection, great prices and ultra-fast delivery promises to a growing group of Prime members and we’re excited to supplement our existing delivery network with a great new provider, ATSG, by adding 20 planes to ensure air cargo capacity to support one and two-day delivery for customers,” said Dave Clark, Amazon senior vice president of worldwide operations and customer service.
The commercial agreements will include the leasing of 20 Boeing 767 freighter aircraft to Amazon Fulfillment Services by ATSG’s Cargo Aircraft Management (CAM), the operation of the aircraft by ATSG’s airlines, ABX Air and Air Transport International, and gateway and logistics services provided by ATSG’s LGSTX Services. The duration of the 20 leases will be five to seven years; the agreement covering operation of the aircraft will be for five years.
The deal also give Amazon the option to acquire up to 19.9 per cent of ATSG’s common shares at $9.73 per cent.
Joe Hete, President and CEO of ATSG, said: “Since last summer, we have been working closely with Amazon to demonstrate that a dedicated, fully customised air cargo network can be a strong supplement to existing transport and distribution resources.
“We are excited to serve Amazon customers by providing additional air cargo capacity and logistics support to ensure great shipping speeds for customers.”
ATSG, based in Wilmington, Ohio, is the world’s largest owner and operator of converted Boeing 767 freighter aircraft. It povides aircraft leasing, air cargo lift, aircraft maintenance services and airport ground services. Subsidiaries include ABX Air, Inc.; Airborne Global Solutions, Inc.; Air Transport International, Inc.; Cargo Aircraft Management, Inc.; Airborne Maintenance and Engineering Services, Inc., and LGSTX Services, Inc.