Atlas Air Worldwide Holdings, Inc. (AAWW) announced today that it will provide air cargo services to support Amazon’s package deliveries to its customers.

The long-term commercial agreements will include the operation of 20 B767-300 converted freighters for Amazon on a CMI (crew, maintenance and insurance) basis by Atlas Air Worldwide’s airline subsidiary, Atlas Air, Inc., 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.

“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 AWWW CEO William Flynn. “We appreciate Amazon’s confidence in our capabilities, global scale and operating excellence.”

As part of the agreement, Atlas Air Worldwide granted Amazon warrants to acquire up to 20 percent of AAWW’s common shares at a price of $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 agreement also provides for future growth of the relationship as Amazon may increase its business with Atlas. Atlas Air Worldwide granted Amazon warrants to acquire up to an additional 10 percent of AAWW’s common shares at the same exercise price, over a period of seven years, with vesting tied to payments made by Amazon in connection with that business.

“We are excited to welcome a great provider, Atlas Air, to support package delivery,” said Dave Clark, Amazon’s senior vice president of worldwide operations, “to the rapidly growing number of Prime members who love ultra-fast delivery, great prices and vast selection from Amazon.”