Amazon To Lease 20 Boeings For Cargo Delivery

March 9, 2016

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Amazon has signed a deal to lease 20 Boeing 767 freighters from Air Transport Services Group to handle more of its own deliveries in the United States.

Amazon, which relies on carriers such as United Parcel Service and FedEx to deliver most of its packages, spent USD$11.5 billion on shipping last year.

The leased planes will start to go into operation on April 1, Amazon spokeswoman Kelly Cheeseman said in an email.

The duration of the leases will be five to seven years, Air Transport Services Group said.

Amazon has been testing deliveries by drones but has not said when they would be in service.

As part of the agreement, Amazon has the right to buy up to 19.9 percent of ATSG's stock over five years at USD$9.73 per share.

(Reuters)