Air Transport Services Group has signed commercial agreements with Amazon to operate a freighter network in the US.

Under the agreements, Amazon Fulfillment Services, Inc., an Amazon.com affiliate, will lease 20 Boeing 767-200 freighters for five to seven years from Cargo Aircraft Management, ATSG’s leasing unit. The planes will be operated by ABX Air and Air Transport International, ATSG’s airline units, for five years. ATSG’s LGSTX Services will provide gateway and logistics services.

“Since last summer, we have been working closely with Amazon to demonstrate that a dedicated, fully customized air cargo network can be a strong supplement to existing transportation and distribution resources,” said Joe Hete, president and CEO of ATSG. “We are excited to serve Amazon customers by providing additional air cargo capacity and logistics support to ensure great shipping speeds for customers.”

ATSG will also give warrants to Amazon to acquire over five years up to 19.9 percent of ATSG’s common shares at US$9.73 per share, according to ATSG.