In a deal that will see Amazon acquire up to 19.9 percent percent of Air Transport Services Group, Inc., (ATSG), Amazon Fulfillment Services, Inc.—an affiliate of Amazon.com, Inc., (as expected)—has agreed to have ASTG operate an air cargo network via twenty B767s to serve Amazon customers in the United States.
     There is some immediate speculation that Amazon will now figure out a way to handle the last mile in its delivery scheme and beyond that to spread its reach globally.
     “There is no reason to believe that at some point they (Amazon) might not market their distribution services, top to bottom, to others,” a source told FlyingTypers.
     For their part, ATSG is thrilled.
     “We are excited to serve Amazon customers by providing additional air cargo capacity and logistics support to ensure great shipping speeds for customers,”said Joe Hete, President and CEO of ATSG.
     The deal includes leasing of twenty Boeing 767 freighter aircraft to Amazon Fulfillment Services, Inc., 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 twenty leases is five to seven years; the agreement covering operation of the aircraft is five years.
Geoffrey

Vol. 15 No. 20
What Will Boost India Cargo?
Brave Bessie Blazes A Trail
Chuckles for March 9, 2016
Of B727s and MD88s
Go JFK Expo March 31