Air Transport Services Group (ATSG) has finalised a deal with Amazon Fulfillment Services to lease 20 of its Boeing 767 freighter aircraft, which will be used to ship cargo for Amazon US customers.
Under the commercial agreement, ATSG’s airlines, ABX Air and Air Transport International will operate the leased aircraft, and ATSG’s LGSTX Services will provide gateway and logistics services.
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The lease deal extends for a period of five to seven years, and the contract to operate the aircraft is for five years, reports The Wall Street Journal.
ATSG president and CEO Joe Hete said: "We have been working closely with Amazon to demonstrate that a dedicated, fully customised air cargo network can be a strong supplement to existing transportation and distribution resources."
The company stated that it has been using five planes for a trial with Amazon and is planning to buy eight additional Boeing 767-300 passenger jets to convert to freighter planes, as well as source seven from its current client base.
ATSG has also agreed to permit Amazon to buy up to 19.9% of its common shares over a period of five-year at $9.73 a share.
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By GlobalDataImage: ATSG to lease 20 Boeing 767s to Amazon. Photo: courtesy of Boeing.
