Air Transport Services Group Inc. said Wednesday it has expanded an air cargo delivery pact widely believed to be withAmazon.com Inc., and wants to extend the trial beyond its planned expiration in March.
The freight airline started domestic flights with three aircraft for Amazon in September, part of the online retail giant’s effort to take more control of its shipping operation, and the service has been boosted to five Boeing Co. 767s.
The Wilmington, Ohio-based company said it was also positioned to expand the service to Europe and China.
Amazon has also held discussions with air-cargo companies to lease airplanes and establish its own freight operation, with the goal of reducing its reliance on traditional carriers, according to people familiar with the matter.
“We’d like to extend our provision of services to that customer for a longer period of time,” ATSG Chief Financial Officer Quint Turner said at an investor conference Wednesday. He didn’t identify Amazon, but made no effort to deflect attention from the retailer during audience questions.
The service presumed to be for Amazon is being run seven days a week through ATSG’s main hub at the Wilmington Air Park. Flight tracking services show aircraft traveling to and from airports near some of Amazon’s largest distribution centers.
(Culled from wsj.com)
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