Oct 24, 2022 - Economy & Business

Amazon expands air cargo network with Hawaiian Airlines deal

An illustration of George Washington with an Amazon smile logo as his mouth.

Illustration: Rebecca Zisser/Axios

Amazon acquired the option to buy up to a 15% stake in the parent company of Hawaiian Airlines, as part of a strategic air cargo deal.

Why it matterd: This is about the e-commerce giant seeking to control even more of its own supply chain, while also putting competitive pressure on frenemies FedEx and UPS.

Details: Amazon received warrants to buy up to a 15% stake in the outstanding common shares of Hawaiian Holdings (Nasdaq: HA), exercisable over the next nine years.

  • Hawaiian will operate an initial fleet of 10 Airbus A330 freighters for Amazon beginning in fall 2023, and it will also establish a continental U.S. pilot base and make related hires to support its Amazon flights.

The bottom line: "Amazon put together a fleet of leased and purchased aircraft acquired from other companies, typically at a discount to new models rolling off the assembly line. The service, which relies on pilots from a handful of partner carriers, has grown rapidly in recent years, tacking on new airport hubs while leasing and purchasing more aircraft." — Mary Schlangenstein, Bloomberg

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