Wednesday, May 11, 2016
Atlas Air Scores Big with Amazon Contract
|Amazon warehouse. Photo: Álvaro Ibáñez via Wikimedia|
[Avionics Today 05-11-2016] Amazon has contracted Atlas Air Worldwide Holdings to provide air cargo services to support for package deliveries to Amazon’s customers. The long-term commercial agreements will include the operation of 20 Boeing 767-300 converted freighters for Amazon on a Crew, Maintenance and Insurance (CMI) basis by Atlas Air Worldwide's airline subsidiary, Atlas Air, as well as dry leasing by its Titan Aviation leasing unit. The dry leases will have a term of 10 years, while the CMI operations will be for seven years, with extension provisions for a total term of 10 years. Operations under the agreements are expected to begin in the second half of 2016 and ramp up to full service through 2018.
As part of the agreement, Atlas Air Worldwide has granted Amazon warrants to acquire up to 20 percent of the company’s common shares, with vesting tied in part to the start of operations of the 20 Boeing 767-300 freighter aircraft and other conditions. The agreements also provide for future growth of the relationship as Amazon may increase its business with Atlas.