Amazon leases planes to start own freight service


E commerce giant Amazon has finally leased twenty planes as a part of launching its own freight service. The Seattle based company has signed a five to seven year lease for 20 cargo planes. Air Transport Services Group, Inc. (ATSG) of Wilmington, Ohio, announced that it had signed a deal to operate an air cargo network of 20 Boeing 767 freighter aircraft for Amazon Fulfillment Services in the United States.

Amazon spokeswoman Kelly Cheeseman said, “These planes provide critical capacity expansion to support the growth of Prime in the U.S.. Planes provide an additional dedicated transportation method connecting Earth’s largest selection to customers from coast to coast. At our scale, supporting growth requires adding some of our own logistics capabilities.”  Amazon plans to cut the cost and time of delivery through setting up its own  freight service. ATSG will lease 20 Boeing 767 freighter aircraft to Amazon Fulfillment Services, Inc., an affiliate of Amazon. The lease is for between five and seven years. The Ohio company will also fly the aircraft and be responsible for gate and logistics services. ATSG was up 18.6% Wednesday to $13.96, on the news.

Joe Hete, president and CEO of ATSG said in a statement “Since last summer, we have been working closely with Amazon to demonstrate that a dedicated, fully customized air cargo network can be a strong supplement to existing transportation and distribution resources.”.