Amazon inks deal with Air Transport Services to serve its U.S. customers
Air Transport Services Group Inc. said Wednesday it has reached an agreement with Amazon.com Inc. unit Amazon Fulfillment Services Inc. to operate an air cargo network servicing Amazon customers in the U.S. "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," Air Transport Services Chief Executive Joe Hete said in a statement. The deal includes the leasing of 20 Boeing 767 freighter aircraft to Amazon, the operation of the aircraft and logistics services. Air Transport Services has also granted Amazon warrants to buy up to 19.9% of its stock at $9.73 a share over the next five years. The stock closed Tuesday at $11.77. It was indicating higher premarket in light volumes. Amazon held talks last year with air cargo companies with the goal of reducing its reliance on traditional carriers, The Wall Street Journal has reported.
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