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Air Transport Services Confirms Deal With Amazon
To Operate Air Transport Network |
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March 9, 2016 – Air Transport Services Group,
Inc. announced today 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.
“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.”
The commercial 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.
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“We offer Earth’s largest selection, great
prices and ultra-fast delivery promises to a
growing group of Prime members and 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.
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. ATSG is a
leading 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.
ATSG, through its leasing and airline
subsidiaries, is the world's largest owner and
operator of converted Boeing 767 freighter
aircraft. Through its principal subsidiaries,
including two airlines with separate and
distinct U.S. FAA Part 121 Air Carrier
certificates, ATSG provides aircraft leasing,
air cargo lift, aircraft maintenance services
and airport ground services. ATSG's
subsidiaries include ABX Air, Inc.; Airborne
Global Solutions, Inc.; Air Transport
International, Inc.; Cargo Aircraft Management,
Inc.; Airborne Maintenance and Engineering
Services, Inc., and LGSTX Services, Inc. |
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