ATSG expands and extends aircraft leasing and operating agreements with Amazon

posted on 2nd January 2019 by Justin Burns

Air Transport Services Group (ATSG) has penned agreements to lease and operate 10 additional Boeing 767Fs for Services with deliveries of five each in 2019 and 2020.

It has also extended leases for 20 767 aircraft ATSG currently provides to the e-commerce giant, and to extend the operating agreement through which ATSG’s airlines operate those aircraft in the Amazon Air network through until March 2026.

In conjunction with the new and amended commercial arrangements, Amazon will be granted warrant rights which, if exercised, would further expand its potential equity stake in ATSG. Additional warrants increase Amazon’s potential ownership of ATSG to 33.2 per cent.

The arrangements also provide warrant incentives for Amazon to lease up to 17 additional cargo aircraft from ATSG, not including the 10 767 lease commitments for 2019-2020 and the 20 767 aircraft ATSG currently provides to Amazon. This would increase its potental ownership to 39.9 per cent.

Amazon senior vice president of worldwide operations, Dave Clark said: “Our customers love massive selection and fast delivery, and the Amazon Air capacity we are building enables Prime delivery speeds for customers from Seattle, Washington to Miami, Florida.

“By expanding the Amazon Air network through our partnership with ATSG we’re able to ensure we have the capacity to quickly and efficiently deliver packages to customers for years to come.”

ATSG president and chief executive officer, Joe Hete added: “We’re pleased to expand and extend for several years our support of Amazon’s exceptional ability to provide reliable and fast delivery to its customers.

“As the world’s leading source of customer-dedicated 767 cargo aircraft, we have the access to aircraft and unmatched operating capabilities to continue to support Amazon Air for many years to come.”