Air Transport Services Group (ATSG), a provider of medium wide-body cargo aircraft leasing, air cargo transportation, and associated services, has revealed an agreement to operate ten additional Boeing 767 freighters for Amazon.com Services in the Amazon Air network, by the conclusion of 2024. The operating agreement, under which ATSG’s airlines will operate these aircraft, will be prolonged until May 2029, with the option to extend for an additional five years.
“We are delighted to further enhance our prominent role in the Amazon Air network, which commenced in 2016,” remarked Joe Hete, Chairman and CEO of ATSG. “Our operational capabilities will continue to uphold Amazon’s commitment to customer satisfaction for many years to come.”
Key features of the new and revised agreements include ATSG airlines commencing operations with the initial ten Boeing 767-300 freighters supplied by Amazon from Summer 2024, with the potential to incorporate up to ten additional aircraft.
The operating agreement is extended until May 2029, with the possibility of extending for a further five years. Furthermore, ATSG has consented to prolong the exercise period for vested warrants for 21.8 million shares previously issued to Amazon, amend the vesting conditions, extend the exercise period for unvested existing warrants for 2.9 million shares, and allocate new warrants for up to 2.9 million additional shares to Amazon.
“These additional aircraft will enable us to maximise our existing infrastructure and capabilities for increased operating revenues. This expanded and prolonged operating agreement underscores the reliability of our employees and the dependability we contribute to the Amazon Air network,” Hete affirmed. “Our objective is to uphold our commitment to providing Amazon with exceptional service while generating value for all our shareholders.”
