Amazon Leases Ten Additional Aircraft from ATSG
2019-01-04 09:47 Friday
Air Transport Services Group (ATSG), a leading provider of medium wide-body cargo aircraft leasing, air cargo transportation and related services, recently announced a partnership with internet giant Amazon, which agreed to lease another ten Boeing 767-300 Freighters from ATSG. ATSG will also issue additional shares to Amazon at an exercise price of $21.53 per share, which will increase Amazon's potential stake in ATSG to 33.2%.
The ten 767Fs will be provided by ATSG leasing's subsidiary Cargo Aircraft Management (CAM), and the aircrafts will be operated by an ATSG airline. Five of the aircraft will be delivered in 2019, and the rest in 2020. The lease period is 10 years, and Amazon reserves the right to extend the lease for another three years to 2023.
The two companies also agreed to extend a maintenance service agreement that applies to aircraft leased to Amazon by CAM for another, five years through March 2026. In addition, Amazon will be awarded additional warranty rights if it chooses to lease 17 or more ATSG aircraft before January 2026.
Amazon's senior vice-president of worldwide operations Dave Clark noted: "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."
"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" said Joe Hete, President and CEO of ATSG.
"We view the prospect of a strong, growing customer like Amazon becoming a significant equity holder as a positive for all ATSG stakeholders, and our mission is to provide Amazon with exceptional service while creating equity value for all of our shareholders", Hete added.