ALASAKA Air will take over cargo transportation for e-commerce giant Amazon when it concludes a deal announced recently to acquire Hawaiian Airlines in a cash transaction for stock and debt worth US$1.9 billion, reports New York's FreightWaves.
Whether the Amazon transportation services agreement is eventually modified is unclear, but Alaska's CEO said it could spur further investment in freighters.
'For now, nothing changes,' said Hawaiian Airlines spokesman Alex Da Silva in an email.
Hawaiian Airlines in early October began flying an Airbus A330-300 converted freighter between Amazon's air logistics superhub at Cincinnati/Northern Kentucky International Airport and its West Coast hub in San Bernardino, California. Under a contract inked late last year, Amazon plans to lease nine more of the former passenger planes that are being overhauled to carry cargo containers and turn them over to Hawaiian to operate on its behalf in the domestic US market.
The parent company of alaska Airlines presumably contemplated that Amazon has warrants to take a 15 per cent equity stake in Hawaiian Airlines after nine years conditioned on meeting a spending threshold of $1.8 billion.
Operating freighters for the first time in a partnership with Amazon is a way for Hawaiian to diversify its business.
'We will be closely assessing whether further dedicated freight or flying for ourselves or in an asset light model for others could make sense for the combined company over time,' said Alaska Air CEO Ben Minicucci on a conference call with analysts.
The Amazon partnership also gives Alaska Airlines a Midwest pilot base and more opportunities for pilots to fly widebody aircraft, which offer more lucrative pay.
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Whether the Amazon transportation services agreement is eventually modified is unclear, but Alaska's CEO said it could spur further investment in freighters.
'For now, nothing changes,' said Hawaiian Airlines spokesman Alex Da Silva in an email.
Hawaiian Airlines in early October began flying an Airbus A330-300 converted freighter between Amazon's air logistics superhub at Cincinnati/Northern Kentucky International Airport and its West Coast hub in San Bernardino, California. Under a contract inked late last year, Amazon plans to lease nine more of the former passenger planes that are being overhauled to carry cargo containers and turn them over to Hawaiian to operate on its behalf in the domestic US market.
The parent company of alaska Airlines presumably contemplated that Amazon has warrants to take a 15 per cent equity stake in Hawaiian Airlines after nine years conditioned on meeting a spending threshold of $1.8 billion.
Operating freighters for the first time in a partnership with Amazon is a way for Hawaiian to diversify its business.
'We will be closely assessing whether further dedicated freight or flying for ourselves or in an asset light model for others could make sense for the combined company over time,' said Alaska Air CEO Ben Minicucci on a conference call with analysts.
The Amazon partnership also gives Alaska Airlines a Midwest pilot base and more opportunities for pilots to fly widebody aircraft, which offer more lucrative pay.
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