Air Transport Services Signs Deal With Amazon To Operate Air Cargo Network
(RTTNews) - Air Transport Services Group, Inc. (ATSG) said it has reached agreements with Amazon Fulfillment Services, Inc., an affiliate of Amazon.com, Inc. (AMZN), to operate an air cargo network to serve Amazon customers in the U.S.
In conjunction with the commercial agreements, ATSG also has agreed to grant Amazon warrants to acquire over a five-year period up to 19.9 percent of ATSG's common shares at $9.73 per share, based on the closing price of ATSG common shares on February 9, 2016.
The commercial agreements will include the leasing of 20 Boeing 767 freighter aircraft to Amazon Fulfillment Services, Inc. by ATSG's Cargo Aircraft Management or 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, while the agreement covering operation of the aircraft will be for five years.