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Hawaiian Holdings, the parent company of Hawaiian Airlines, secured a new deal with Amazon on Friday to operate 10 cargo planes starting next fall.
The airline will operate 10 leased Airbus A330-300 jets to move cargo between airports near Amazon’s operation facilities, according to an announcement from Hawaiian. The agreement may increase the fleet in the future “depending on Amazon’s future business needs.”
One of the conditions of the agreement is that the airline issued Amazon warrants to acquire up to 15% of shares in the company that is exercisable for the next nine years. Hawaiian Holdings stock increased by 13% on Friday after the announcement was released.
Amazon will lease the 10 planes from the company Altavair, and the online retailer’s air division will convert passenger planes to freighters. Hawaiian intends to establish more pilot bases in the U.S. as well as hire more pilots, mechanics and dispatchers.
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Hawaiian Airlines says it intends to establish more pilot bases in the U.S. as a result of their deal with Amazon. (REUTERS/Louis Nastro / Reuters)
“We are excited to help serve Amazon customers by providing additional air cargo capacity and logistics support. This recognizes our experience in providing safe and reliable operations, our incredible front-line team, and our shared focus on the customer,” said Hawaiian Airlines CEO Peter Ingram in a statement.
“This relationship provides a catalyst to grow our business and the unique opportunity to diversify our revenue sources while capitalizing on our established strengths,” he added.
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The jets in question can hold 330 seats as a passenger two-aisle plane. According to The Associated Press, the director of Amazon’s air fleet claims these jets will be the largest jets flying for the division.
Hawaiian is set to host a conference call with investors and reporters Friday at 4 p.m. ET.
