A Willmington-based company has expanded leasing and operating agreements with one of the world’s largest online retailers.
Air Transport Services Group in Willmington has agreed to lease another 10 freight airliners to Amazon for delivery services, the companies announced recently. Per the agreement, ATSG will provide Amazon five more airplanes in 2019 and then the second five planes in 2020 each with lease agreements for 10 years.
Amazon already leases 20 Boeing 767s from ATSG and the new deal will also extend leases for those aircraft through 2023, according to ATSG.
“We’re pleased to expand and extend for several years our support of Amazon’s exceptional ability to provide reliable and fast delivery to its customers,” Joe Hete, ATSG president said in a prepared statement. “As the world’s leading source of customer-dedicated 767 cargo aircraft, we have the access to aircraft and unmatched operating capabilities to continue to support Amazon Air for many years to come.”
Amazon will be provided incentives to lease up to 17 additional cargo planes from ATSG on top of the 30 the retailer already plans to lease, according to the agreement. As part of the deal, Amazon would also be granted “warrant rights” which would allow the retailer to expand its equity stake in the airline leaser, according to ATSG.
ATSG’s latest deal with Amazon comes as the air services provider announced in December that it would acquire 20 Boeing 767s from Jetran over the next three years.
Amazon Air announced in November that it would establish a package sorting facility at Wilmington Air Park that it is calling an “air gateway.” The retail giant is also building out an air hub operation at the Cincinnati/Northern Kentucky International Airport.
“Our customers love massive selection and fast delivery, and the Amazon Air capacity we are building enables Prime delivery speeds for customers from Seattle, Washington to Miami, Florida,” Dave Clark, Amazon senior vice president of worldwide operations said in a press release. “By expanding the Amazon Air network through our partnership with ATSG we’re able to ensure we have the capacity to quickly and efficiently deliver packages to customers for years to come.”