Air Transport Services Group in Deal with Amazon to Operate Air Transport Network - Global Trade Magazine
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  March 10th, 2016 | Written by

Air Transport Services Group in Deal with Amazon to Operate Air Transport Network

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  • Air Transport Services Group will operate an air cargo network to serve Amazon customers in the U.S.
  • Amazon-ATSG agreement include leasing and operation of 20 Boeing 767 freighter aircraft and logistics services.
  • Amazon exec: "We're excited to supplement our existing delivery network with a great new provider, ATSG.”

Air Transport Services Group, Inc. yesterday announced agreements with Amazon Fulfillment Services, Inc., an affiliate of Amazon.com, Inc., to operate an air cargo network to serve Amazon customers in the United States.

The agreements will include the leasing of 20 Boeing 767 freighter aircraft to Amazon Fulfillment Services, Inc. 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.

“Since last summer, we have been working closely with Amazon to demonstrate that a dedicated, fully customized air cargo network can be a strong supplement to existing transportation and distribution resources,” said Joe Hete, president and CEO of ATSG. “We are excited to serve Amazon customers by providing additional air cargo capacity and logistics support to ensure great shipping speeds for customers.”

In conjunction with the commercial agreements, ATSG also has agreed to grant Amazon options to acquire up to 19.9 percent of ATSG’s common shares over a five-year period.

“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.

ATSG, based in Wilmington, Ohio, is a provider of aircraft leasing and air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements. It is the world’s largest owner and operator of converted Boeing 767 freighter aircraft.