Amazon acquires minority stake in Air Transport Services Group
Amazon has acquired a minority stake of 19.5 per cent in Air Transport Services Group (ATSG), amounting to a total of about 14.4 million shares for a price of US$131 million.
The purchase, in two separate transactions, comes as a result of Amazon exercising warrants it had previously acquired. The transactions must still be approved by the US Department of Transportation.
ATSG currently operates an air cargo network to serve Amazon customers in the US.
Amazon Air could eventually own up to 39.9% of ATSG depending on whether it leases more aircraft from the company and exercises all warrants it holds.
Amazon’s 19.5 per cent stake in ATSG gives it the right to appoint one member to ATSG’s board of directors.
Amazon acquired seven 767-300s from Delta Air Lines in January and four of the same type from WestJet in March 2020, the first to be directly owned by the company.
In November 2020, Amazon launched air cargo operations in Europe with a 20,000sq m facility at Germany’s Leipzig/Halle Airport – the company’s first regional air hub outside of the US.