Atlas Air Worldwide Holdings (AAWH) says it has signed a longterm strategic partnership agreement with Amazon which could see the US online retailer acquiring up to 30% of the freight specialist's total common stock.

Under the terms of the deal, Atlas Air (5Y, New York JFK) will support Amazon’s package deliveries through the operation of twenty B767-300Fs on a CMI (crew, maintenance and insurance) basis. The converted freighters will be dry-leased capacity from Atlas's Titan Aviation leasing unit.

The dry-leases will have a term of ten years, while the CMI operations will be for seven years (with extension provisions for a total term of ten years).

Operations are expected to begin during the second half of this year and will will reach their full capacity in 2018.

The online retailer will also have the option of acquiring a 20% stake in AAWH valued at USD37.50 per ordinary share. The purchase is tied in part to the twenty B767 freighters commencing operations among other conditions. Amazon also has warrants to acquire up to an additional 10% (after issuance) of AAWH ordinary shares at the same exercise price, over a period of seven years.

In March, Amazon acquired a 9.99% stake in the Air Transport Services Group (ATSG) for approximately USD70 million and holds the right to acquire an additional 10% stake in the firm between now and 2021. Under that contract, ATSG's ATI - Air Transport International (8C, Wilmington, OH) and ABX Air (GB, Wilmington, OH) units will operate a total of twenty B767 freighters for and on behalf of Amazon Fulfillment Services, Inc., on five year contracts.