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Amazon, Atlas Air Worldwide join forces for cargo services


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Amazon, Atlas Air Worldwide join forces for cargo services

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

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 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.