Air Transport Services Group confirms deal with Amazon to lease 20 Boeing 737 freighter aircraft

Air Transport Services signed agreements with Amazon Fulfillment Services, an affiliate of Amazon.com, to operate an air cargo network to serve Amazon customers in the United States. The commercial agreements will include the leasing of 20 Boeing 767 freighter aircraft to Amazon Fulfillment Services, by ATSG’s Cargo Aircraft Management (CAM), the operation of the aircraft by ATSG’s airlines, ABX Air and Air Transport International, and gateway and logistics services provided by ATSG’s LGSTX Services. The duration of the 20 leases will be five to seven years; the agreement covering operation of the aircraft will be for five years. In conjunction with the commercial agreements, ATSG also has agreed to grant Amazon warrants to acquire up to 19.9% of ATSG’s common shares at US$9.73 per share over a five-year period, based on the closing price of ATSG common shares on February 9th, 2016.