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.
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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.”
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