Amazon hires Hawaiian Air to fly rented Airbus cargo jets to replace older freighters

Air cargo containers with the emblem of Amazon are seen at Miami International Airport, in Miami, Florida, United States on June 16, 2021.

Marco Bello | Anadolu Agency | Getty Images

Amazon has employed Hawaiian Airlines to fly the primary Airbus cargo planes within the retail big’s air community, plane that can assist replace older jets, because the service turns into the newest passenger airline to fly for the corporate.

Hawaiian will fly at the very least 10 Airbus A330-300 transformed freighters for Amazon, with the primary ones beginning within the fall of 2023, the service mentioned in a submitting.

Hawaiian shares surged as a lot as 13% in early trading following the announcement.

The Airbus jets, which would be the largest in its fleet, usually are not for internet development, however as an alternative meant to replace older plane getting phased out as their leases expire or are shut to their working life, an Amazon spokesperson instructed CNBC.

Amazon has expanded its devoted air unit lately, whose operations are outsourced to a number of airways, together with Atlas Worldwide Holdings and ATSG, which fly Boeing 767s for the corporate, the planes with which Amazon started the air arm.

Amazon remains to be determining which of the older jets will likely be phased out, the spokesperson mentioned.

Sun Country, a leisure-focused service, started flying transformed Boeing 737 freighters for Amazon in 2020, when journey demand collapsed early within the Covid pandemic.

“These A330-300s will not only be the first of their kind in our fleet, they’ll also be the newest, largest aircraft for Amazon Air, allowing us to deliver more customer packages with each flight,” Philippe Karam, director of Amazon world air fleet and sourcing, mentioned in an Airbus information launch.

Air cargo was a scorching phase of aviation throughout the pandemic when client journey plunged and port snarls drove up charges, however the market has since cooled. A surge in journey has meant extra capability has entered the market in passenger stomach planes, port congestion eased and client habits shifted, driving down the price of air cargo.

Under the settlement, Hawaiian is issuing warrants for Amazon to purchase up to 15% of its inventory, exercisable over the following 9 years. Amazon has related agreements with different air cargo suppliers ATSG and Atlas.

Hawaiian mentioned it’ll arrange a pilot base within the continental U.S. and rent extra aviators, mechanics and dispatchers to assist its Amazon flying.

Hawaiian mentioned it’ll maintain an investor and media name at 4 p.m. ET on Friday to focus on the plan.

How the pandemic shifted how Boeing and airlines think about air cargo

Source Link