Atlas Air Worldwide Holdings has signed agreements with Amazon to operate 20 Boeing 767-300 converted freighters on a CMI basis.

“We are excited to welcome a great provider, Atlas Air, to support package delivery to the rapidly growing number of Prime members who love ultra-fast delivery, great prices and vast selection from Amazon,” said Dave Clark, senior vice president of worldwide operations at Amazon.

The aircraft will be dry leased for 10 years from Titan Aviation, Atlas Air Worldwide’s leasing subsidiary, and operated by Atlas Air, Inc. for seven years, with an option to extend the total term to 10 years.

“We are excited to begin a strategic long-term relationship with Amazon to support the continuing expansion of its e-commerce business and to enhance its customer delivery capabilities,” said William Flynn, president and CEO of Atlas Air Worldwide Holdings. “We appreciate Amazon’s confidence in our capabilities, global scale and operating excellence.”

Atlas expects operations to begin in the second half of 2016, ramping up to full service by the end of 2018.

According to Atlas, it has also granted Amazon warrants to acquire up to 20% of AAWW’s shares over five years at a price of US$37.50 per share, as well as an additional 10% over seven years at the same price.

The Atlas deal resembles the agreement Amazon signed with Air Transport Services Group in March 2016, involving the leasing and operation of 20 767-200 freighters, and warrants to acquire up to 19.9% of ATSG’s common shares at US$9.73 per share over a period of five years.