Welcome to GreaterSiliconValley.com—find your next growth opportunity here!
Air Transport Services Group Confirms Deal with Amazon to Operate Air Transport Network
March 18, 2016
Air Transport Services Group, Inc. (ATSG) recently announced agreements with Amazon Fulfillment Services, Inc., an affiliate of Amazon.com, Inc., to operate an air cargo network to serve Amazon customers in the United States.
ATSG is the parent company of Air Transport International (ATI), which began operating out of Stockton Metropolitan Airport in early February. That operation is part of a trial network ATSG and Amazon officials said that will go into regular operation under a five- to seven-year agreement.
Stockton Airport, serving as low-cost logistics hub, features top-of-the-line air cargo capabilities. In addition, it boasts one of the longest runways in the region, making it the only non-hub airport in Northern California able to accommodate the entire fleet of wide-body aircraft.
Joe Hete, President and CEO of ATSG, said the company has been working closely with Amazon to demonstrate that a dedicated, fully customized air cargo network could augment existing transportation and distribution resources. “We are excited to serve Amazon customers,” Hete said, “by providing additional air cargo capacity and logistics support to ensure great shipping speeds for customers.”
The commercial agreements will include the leasing of 20 Boeing 767 freighter aircraft to Amazon Fulfillment Services, Inc. by ATSG’s Cargo Aircraft Management (CAM), the operation of the aircraft by ATSG’s airlines, ABX Air and Air Transport International, and gateway and logistics services provided by ATSG’s LGSTX Services.
“We’re excited to supplement our existing delivery network with a great new provider, ATSG, by adding 20 planes to ensure air cargo capacity to support one and two-day delivery for customers,” said Dave Clark, Amazon senior vice president of worldwide operations and customer service.
Amazon has two fulfillment centers near Stockton Airport, one in Tracy is 17 miles from the airport and another is located in Patterson 38 miles away.
San Joaquin County, where the airport is located, is arguably the most geographically advantaged region in California for distribution of goods. With a sophisticated transportation network comprising a deep water port, major interstate highways, air service, and rail, this centrally-located hub in Greater Silicon Valley keeps the economy moving.