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Air Transport Services gets 21pc revenue boost from March Amazon deal
AIR Transport Services Group (ATSG), of Wilmington, Ohio, says has become a big winner from burgeoning e-commerce as quarterly revenues soar 21 per cent because of an Amazon.com deal made in March.
ATSG is now deploying seven Boeing 767-200s as part of a long-term leasing arrangement with Amazon Fulfillment Services, reports Barron's magazine.
It will add five more 200s plus three 767-300s by year end, and another five 300s in 2017, said the report. In the deal, ATSG granted Amazon warrants, giving the retailer the right to buy 19.9 per cent of Air Transport stock at $9.73 a share in the next five years.
Under pressure to ensure one- and two-day delivery promises under its Prime membership programme, Amazon has been customising and expanding its transport capability.
ATSG has also extended its relationship with DHL and has a 25 per cent stake in a new Chinese joint venture to capitalise on e-commerce growth overseas.
ATSG is now deploying seven Boeing 767-200s as part of a long-term leasing arrangement with Amazon Fulfillment Services, reports Barron's magazine.
It will add five more 200s plus three 767-300s by year end, and another five 300s in 2017, said the report. In the deal, ATSG granted Amazon warrants, giving the retailer the right to buy 19.9 per cent of Air Transport stock at $9.73 a share in the next five years.
Under pressure to ensure one- and two-day delivery promises under its Prime membership programme, Amazon has been customising and expanding its transport capability.
ATSG has also extended its relationship with DHL and has a 25 per cent stake in a new Chinese joint venture to capitalise on e-commerce growth overseas.
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