Amazon.comInc. struck deals to secure air cargo services from Atlas AirWorldwide Holdings Inc.

The online retail giant has also been granted warrants topurchase up to a 30% stake in Atlas Air Worldwide at $37.50 a share, Atlas AirWorldwide said in a May 5 news release adding that Amazon could acquire up to20% of the company's common shares over five years and then an additional 10%over seven years.

Pursuant to the long-term commercial agreements, Atlas AirWorldwide Holdings unit Atlas Air Inc. will run 20 B767-300 convertedfreighters to support the online retail giant's package deliveries tocustomers. Atlas Air Worldwide Holdings unit Titan Aviation leasing unit willprovide dry leases to Amazon.com.

The dry leases will have a 10-year term, and the crew,maintenance and insurance operations will have a seven-year term, with anoption to extend the deal to a period of 10 years.

The companies will start providing services to Amazon.com inthe second half of 2016 and ramp up to full service through 2018.

Morgan Stanley & Co. LLC is serving as financialadviser, while Cravath Swaine & Moore LLP is serving as legal adviser toAtlas Air Worldwide on the transaction.