Amazon.com, Inc. announced the lease of 12 Boeing 767-300 converted cargo aircraft from Air Transport Services Group (ATSG). These aircraft will join Amazon’s existing fleet of 70 aircraft to bring its total network to over 80 aircraft. One of the new aircraft joined Amazon’s air cargo operations in May 2020, with the remaining 11 to be delivered in 2021.
Amazon Air’s fleet expansion comes at a time when people in communities across the country continue to adjust to this unprecedented time, with many relying on having the items they need delivered directly to their doorstep, the company said. Amazon Air has played a central role during the COVID-19 pandemic by transporting essential PPE supplies for Amazon associates, frontline health workers and relief organizations across the U.S., all while maintaining capacity for regular cargo operations to ensure customers continue to receive the items they need. Now, with expanded cargo capacity to come, Amazon will continue to meet evolving demand and a growing customer base.
“Amazon Air is critical to ensuring fast delivery for our customers – both in the current environment we are facing, and beyond,” said Sarah Rhoads, Vice President of Amazon Global Air. “During a time when so many of our customers rely on us to get what they need without leaving their homes, expanding our dedicated air network ensures we have the capacity to deliver what our customers want: great selection, low prices and fast shipping speeds.”
“We are proud to continue to evolve our partnership with Amazon to support the fast, free delivery for which they are famous,” said Rich Corrado, President and CEO of ATSG. “Our combined experience in the industry and access to a fleet of 767 cargo aircraft make us an ideal partner to support the growth of Amazon Air’s fleet.”
Cargo Aircraft Management (CAM), ATSG’s aircraft leasing subsidiary, currently leases 27 of the 767 aircraft to Amazon, including six leased during 2019. In December 2018, Amazon committed to lease those six plus an additional four 767s from CAM by the end of 2020. The agreement announced today increases the projected number of 767s CAM will have leased to Amazon to 31 by the end of 2020 and to 42 by the end of 2021.
Pursuant to the terms of the parties’ December 2018 deal, Amazon will be granted approximately 7 million warrants to purchase ATSG common shares in exchange for its commitment to these 12 additional leases.
Amazon continues to expand on-the-ground operations in addition to aircraft. Amazon will open new Regional Air Hubs at Lakeland Linder International Airport in Florida later this summer and at San Bernardino International Airport next year, along with the central Amazon Air Hub at the Cincinnati/Northern Kentucky International Airport in 2021. In May, Amazon Air began Gateway operations at Austin-Bergstrom International Airport in Austin, Texas, and Luis Muñoz Marín International Airport in San Juan, Puerto Rico. Since Amazon Air’s launch in 2016, Amazon has invested hundreds of millions of dollars and created thousands of new jobs at Amazon Air locations across the U.S.