ATSG to lease a dozen more B767 freighters to Amazon

ATSG Amazon B767

Air Transport Services Group (ATSG) announces an agreement to lease 12 additional B767-300 converted freighter aircraft to Amazon.com Services for its rapidly growing Prime Air air logistics division.

ATSG – a leading provider of medium, wide-body aircraft leasing, air transportation and related services – says the first of the twelve aircraft was delivered on 29 May and the remaining eleven will be delivered in 2021.

All twelve will be leased to Amazon for ten years, with options for Amazon to extend the leases for three additional years.

Cargo Aircraft Management (CAM), ATSG’s aircraft leasing subsidiary, currently leases twenty-seven B767 freighters to Amazon, including six leased during 2019. In December 2018, Amazon committed to lease those six plus an additional four B767s from CAM by the end of 2020.

The agreement announced today increases the projected number of B767s CAM will have leased to Amazon to 31 by the end of 2020 and to 42 by the end of 2021.

Rich Corrado, president and CEO of ATSG says: “This new commitment is further evidence of Amazon’s confidence in our ability to support its expanding US air network. We look forward to supporting Amazon with additional aircraft capacity and to generating additional revenues and cash flows for our shareholders from our unique asset and service offerings, for many years to come.”

Widebody B767 freighters have become the pre-eminent midsize component of regional air cargo networks over the last ten years, with ATSG being the world’s largest lessor of that aircraft type. ATSG expects to end 2020 with seventy-eight owned B767 freighter aircraft in operation, seventy-one of which will be leased to eleven external customers.

Pursuant to the terms of the parties’ December 2018 deal, Amazon will be granted approximately seven million warrants to purchase ATSG common shares in exchange for its commitment to these twelve additional leases. The cash exercise price for these warrants will be USD 20.40 per share, based upon the volume-weighted average price of ATSG’s stock for the 30 trading days concluded prior to the contractual commitment for the leases.

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ATSG to lease a dozen more B767 freighters to Amazon
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ATSG to lease a dozen more B767 freighters to Amazon
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Air Transport Services Group (ATSG) announces an agreement to lease 12 additional B767-300 converted freighter aircraft to Amazon.com Services for its rapidly growing Prime Air air logistics division.
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AsiaCargoBuzz.com
AsiaCargoBuzz.com
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