[090516.EN.AIR] Amazon To Lease a Further 20 Freighters From Atlas, Both Parties 'Excited'

AMERICAN e-commerce giant Amazon has signed leases for 20 freighters, from Atlas Air Worldwide Holdings as part of a long-term agreements that include the operation of 20 B767-300 converted freighters for Amazon on a crew, maintenance and insurance (CMI) basis.

This will involve Atlas Air Worldwide's airline subsidiary, Atlas Air, as well as dry leasing by its Titan Aviation leasing unit, reported London's Air Cargo News.

Atlas Air Worldwide also granted Amazon warrants to acquire up to 20 per cent of its common shares at a price of US$37.50 per share over a period of five years, with vesting tied in part to the commencement of operations of the 20 B767-300 freighter aircraft and other conditions.

The dry leases will have a term of 10 years, while the CMI operations will be for seven years, with extension provisions for 10 years.

The aircraft are expected to be used on domestic US operations, although Amazon has yet to confirm exact plans.

Operations under the agreements are expected to begin in the second half of 2016 and ramp up to full service through 2018.

Earlier this year, Amazon announced a deal to lease 20 freighters from ATSG. It would also take a stake in the company. The ATSG deal is for a mix of B767-300s and B767-200s.

Said Atlas president and CEO William Flynn: "We are excited to begin a strategic long-term relationship with Amazon to support the continuing expansion of its e-commerce business and to enhance its customer delivery capabilities."

Said Amazon vice president Dave Clark: "We are excited to welcome a great provider, Atlas Air, to support package delivery to the rapidly growing number of Prime members who love ultra-fast delivery, great prices and vast selection from Amazon."

Source : HKSG.