Amazon expands air cargo network with a 15% stake in Hawaiian Airlines

Amazon expands air cargo network with Hawaiian Airlines deal. 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.

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.

Amazon received warrants to buy up to a 15% stake in the outstanding common shares of Hawaiian Holdings, 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.

“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.”

By Mary Schlangenstein, Bloomberg