Amazon.com has expanded its existing air transportation services agreement with Cargo Aircraft Management, a subsidiary of Air Transport Services Group, to charter a further twelve B767-300F dedicated freighters to its fleet by the end of 2021.
The first of these twelve aircraft, B767-300F N443AZ (msn 25202), was delivered on May 29 and is already operating on behalf of Amazon.com by ATSG's subsidiary ATI - Air Transport International (8C, Wilmington Air Park), Flightradar24 ADS-B data shows. The remaining eleven are due to be delivered throughout 2021.
The new agreement comes on top of a December 2018 agreement which foresees deliveries of a further four B767 dedicated freighters by the end of 2020. As a result of the two transactions, ATSG now expects that the number of B767 converted freighters it charters to Amazon.com will increase to 31 by the end of 2020 and 42 by the end of 2020.
According to the ch-aviation fleets module, ATSG currently charters 27 B767 freighters owned by CAM to Amazon.com, including seven B767-200(F) and twenty -300(F)s, which are operated by ATI. A further nine -200(F)s are operated for Amazon.com by ATI's sister airline ABX Air (GB, Wilmington Air Park). On top of the fleet owned by CAM, ATI also operates two -300(F)s for Amazon.com owned by Atlas Air Worldwide Holdings' subsidiary Titan Aviation Holdings.
ATSG and Atlas Air Holdings are the two main operators of Amazon.com's fleet of dedicated freighters in the United States, although the e-commerce giant also charters aircraft from Sun Country Airlines (SY, Minneapolis St. Paul International).
ATSG announced that as a part of the expanded agreement, it issued Amazon a warrant to purchase 7,014,804 shares of the common stock exercisable at USD20.40 per share. The warrants will vest in increments of 584,567 common shares per every aircraft delivered to Amazon.
