Air Transport Services +4%, says Amazon to lease 10 additional aircraft

|By:, SA News Editor

Air Transport Services (NASDAQ:ATSG) +4.1% pre-market after announcing deals to lease and operate 10 additional Boeing 767-300 freighters for Amazon.com Services (NASDAQ:AMZN), to extend leases for 20 767 aircraft ATSG currently provides to Amazon, and to extend the operating agreement in which ATSG’s airlines operate those aircraft in the Amazon Air network.

In return, AMZN will be granted warrant rights which if exercised would further expand its potential equity stake in ATSG to 33.2%, as well as warrant incentives available for AMZN to increase its potential ownership to 39.9% for leasing up to 17 additional freighter aircraft from ATSG.

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