Amazon’s air cargo hold strengthens

Online retailer and supply chain services provider is expected to increase its ownership in Atlas Air and ATSG, with stock offerings that accompany additional plane leases.

Amazon’s air cargo hold strengthens

Online retailer and supply chain services provider is expected to increase its ownership in Atlas Air and ATSG, with stock offerings that accompany additional plane leases.

Amazon’s air cargo hold strengthens

Online retailer and supply chain services provider is expected to increase its ownership in Atlas Air and ATSG, with stock offerings that accompany additional plane leases.

 

   Amazon, the online retailer and supply chain services provider, has been offered a nearly 40 percent ownership in one of its main air transport operators, Atlas Air Worldwide Holdings.
    The agreement allows Amazon to essentially acquire another 10 percent of Atlas Air’s common stock at $37.50 per share, on top its existing 20 percent ownership which it acquired as part of the May 2016 agreement to lease 20 Boeing 767-300 cargo planes from the carrier based in Purchase, N.Y.
    According to Atlas Air’s March 27 filing with the U.S. Securities and Exchange Commission, the latest stock purchase by Amazon may be exercised through May 4, 2023, at increments of 37,500 shares “each time Amazon has paid $4.2 million of revenue to AAWW, up to a total of $420 million, for incremental new business beyond the leasing or operation of the 20 Boeing 767-300 series aircraft.”
    In addition, Amazon will lease B737-800 cargo planes from Atlas Air through its subsidiary Southern Air for a term of seven years, with options to extend that agreement to 10 years.

   Five B737-800s will be placed into service this year for Amazon.
    “Amazon may, in its sole discretion, place up to 15 additional Boeing 737-800 aircraft into service with Southern Air by May 31, 2021,” Atlas Air said in its SEC filing.
    During its investor meetings in Milwaukee and Chicago last week, Air Transport Services Group (ATSG), another air cargo aircraft provider, noted that last year it entered a deal that provides Amazon with 10 additional B767 leases by the end of 2020. Amazon also received an offer to acquire 33.2 percent of ATSG shares, and options for additional stock purchases based on additional aircraft leases.
    ATSG, which began offering air cargo service to Amazon in late 2015 on a trial basis, currently provides the company 20 dedicated leased B767 freighters, which fly domestically.

We’re spending about $15 billion a year more from the [federal highway] trust fund than we’re bringing in revenue, and that kind of imbalance between revenue and spending can’t continue.
 

Six fully cellular container shipping services are offered from the India Subcontinent to North America (U.S. and Canada) and a total of seven container shipping companies deploy capacity on the trade, according to BlueWater Reporting's database.

Most Popular
Latest News
Social Media

Loading...

A cargo wrangler expands to China

A cargo wrangler expands to China

Embed this story

Share Code Version 1

This version will embed the story headline and includes HTML fallback protection, ensuring the story will display even if some users decide to disable javascript in their browsers.

Copy & Paste the following code to embed this story on your website:

Preview

Amazon’s air cargo hold strengthens

Online retailer and supply chain services provider is expected to increase its ownership in Atlas Air and ATSG, with stock offerings that accompany additional plane leases.

Apr 01, 2019 on Dec 27, 2018AmericanShipper.com

Share Code Version 2

This version will embed the story headline without any styling applied. Use this version if you will use your own custom styling on your website. This version also includes HTML fallback protection.

Copy & Paste the following code to embed this story on your website:

Preview

Amazon’s air cargo hold strengthens

Online retailer and supply chain services provider is expected to increase its ownership in Atlas Air and ATSG, with stock offerings that accompany additional plane leases.

Apr 01, 2019 on Dec 27, 2018AmericanShipper.com