SEATTLE/PURCHASE, NY: April 01, 2019. In a filing with the US Securities & Exchange Commission, Amazon has agreed with Atlas Air Worldwide Holdings (AAWH) to acquire up to 39.9 percent of the company subject to fully exercising two new warrants and paying AAWH US$1.42 billion in new revenue.

Last week AAWW agreed with Amazon.com Services to operate five B737-800 freighters during 2019 on an initial seven-year crew, maintenance and insurance (CMI) contract. Amazon will lease the aircraft from a third party and sublease to AAWW subsidiary Southern Air. The company has the option to increase the contract to 10 years and place up to 15 additional B737 aircraft with Southern by May 31, 2021.

Adding to an existing warrant, the B767-300 contract and the new B737 CMI agreement, AAWW has granted Amazon two new stock warrants valued at a potential US$420 million and US$1 billion respectively if the volume of additional business from Amazon enables them to be fully exercised.

The AAWW filing notes it can make no guarantee as to the future revenue that may be generated under its ‘Amended and Restated Air Transportation Services Agreement’ with Amazon.