Atlas Air’s wholly owned subsidiary Southern Air is to operate converted Boeing 737-800 freighters for Amazon on a crew, maintenance and insurance basis.

According to Atlas, the aircraft will be leased by Amazon from a third party and subleased to Southern Air. Five are scheduled to enter service during this fiscal year.

The CMI agreement is for a term of seven years, with an optional extension by Amazon to a total of 10 years.

Amazon has the discretion to place up to 15 additional 737-800Fs into service with Southern Air by May 31, 2021, provided that it gives confirmation at least 240 days before the scheduled delivery date of each aircraft.

The transport services agreement between Atlas Air and Amazon has also been amended to grant Amazon incremental warrants that would allow it to acquire up to 39.9% of Atlas Air Worldwide’s common shares, an increase from the previous 30.0%.

Atlas and Amazon signed the initial agreement for the operation of 20 767-300Fs in May 2016.