ATSG Expands Operations in the Amazon Air Network
Air Transport Services Group, Inc. (ATSG) has expanded its operations in the Amazon Air network by agreeing to operate ten additional Boeing 767 freighters for Amazon.com Services The operating agreement has been extended to May 2029, with the option for a five-year extension. The agreement includes features such as the operation of initial ten freighters by ATSG airlines starting in Summer 2024 and the potential addition of up to ten more aircraft. ATSG has also issued new warrants for shares to Amazon as part of the agreement.
- ATSG has expanded its operations in the Amazon Air network, securing a long-term operating agreement with Amazon.com Services until May 2029, with the potential for a five-year extension.
- The agreement will allow ATSG to operate ten additional Boeing 767 freighters for Amazon, potentially adding more aircraft in the future, leading to increased operating revenues.
- ATSG's Chairman and CEO, Joe Hete, expressed satisfaction with the expanded and extended operating agreement, highlighting the company's commitment to providing exceptional service to Amazon while creating value for shareholders.
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“We’re pleased to further expand our leading role in the Amazon Air network that we started in 2016,” said Joe Hete, Chairman and CEO of ATSG. “Our operating capabilities will continue to support Amazon’s customer-centric commitments for years to come.”
Key features of the new and amended agreements include:
- ATSG airlines to operate the initial ten Boeing 767-300 freighters provided by Amazon beginning in Summer 2024, with the potential to add up to ten more aircraft.
- Operating agreement extended to May 2029, with the option to extend for an additional five years.
ATSG has also agreed to extend the exercise period for vested warrants for 21.8 million shares it previously issued to Amazon, amend the vesting conditions and extend the exercise period for unvested existing warrants for 2.9 million shares, and issued new warrants for up to 2.9 million additional shares to Amazon.
“These additional aircraft will allow us to leverage our existing infrastructure and capabilities for expanded operating revenues. This expanded and extended operating agreement is a testament to the dependability of our employees and the reliability we bring to the Amazon Air network,” Hete said. “Our mission is to continue to provide Amazon with exceptional service while creating value for all of our shareholders.”
Additional information about these agreements is provided in a Form 8-K that ATSG expects to file with the
About Air Transport Services Group
Air Transport Services Group (ATSG), a premier provider of aircraft leasing and air cargo transportation solutions for both domestic and international air carriers, as well as companies seeking outsourced air cargo services. ATSG is the global leader in freighter leasing with a fleet that includes Boeing 767, Airbus A321, and Airbus A330 aircraft. A diverse portfolio of subsidiaries encompasses the Lease+Plus aircraft leasing opportunity including three airlines holding separate and distinct
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Quint O. Turner, Chief Financial Officer
Air Transport Services Group, Inc.
937-366-2303
Source: Air Transport Services Group, Inc.
