Category Archives: Prime Air

Amazon partners with GECAS to lease an additional fifteen 737-800 converted freighters

Amazon continues to invest in ways to provide fast, free shipping for customers. Today, at the International Paris Air Show, the company announced a partnership with GE Capital Aviation Services (GECAS) to lease an additional fifteen Boeing 737-800 cargo aircraft. These fifteen aircraft will be in addition to the five Boeing 737-800’s already leased from GECAS and announced earlier this year. The aircraft will fly in the United States out of the more than 20 air gateways in the Amazon Air network.

“These new aircraft create additional capacity for Amazon Air, building on the investment in our Prime Free One-Day program,” said Dave Clark, Senior Vice President of Worldwide Operations at Amazon. “By 2021, Amazon Air will have a portfolio of 70 aircraft flying in our dedicated air network.”

“We’re delighted to support Amazon Air’s dedicated air network,” said Richard Greener, GECAS Cargo’s Senior Vice President. “The capability of the 737-800 freighter will further Amazon’s ability to provide reliable and regional delivery to its customers for years to come.”

Amazon Air’s operation launched in 2016 supporting package delivery to the rapidly growing number of customers who love fast delivery, affordable prices and vast selection. With advanced algorithms and software used for capacity and route planning, the Amazon Air operation can transport hundreds of thousands of packages per day. Amazon will open new air facilities this year at Fort Worth Alliance Airport, Wilmington Air Park, and Chicago Rockford International Airport. The main Air Hub at the Cincinnati/Northern Kentucky International Airport will open in 2021. Since its launch, Amazon’s air cargo operation has invested millions of dollars and created thousands of new jobs at locations across the U.S.

Amazon has launched several initiatives to ensure fast delivery speeds and supply chain capacity for its customers, including its Delivery Service Partner program, Amazon Flex, the company’s mobile application that allows individuals to sign-up, be vetted and begin delivering for Amazon, a dedicated network of over 10,000 trailers to increase trucking capacity and, now, the expanded fleet of cargo aircraft. These efforts join Amazon’s robust worldwide network of more than 185 fulfillment centers where the company uses high-end algorithms, robotics, machine learning and other technological innovations to increase delivery speeds for customers. Amazon is now bringing the same technological expertise to efforts in the transportation space to increase shipping capacity for customers.

Launching the 737-800 passenger-to-freighter conversion program in 2016 and delivering the inaugural Boeing Converted Freighter (BCF) less than one year ago, GECAS has plans to convert at least 50 of this type, providing the capacity for the growing need for cargo air transport. The aircraft are equipped with a rigid cargo barrier and have 12 main deck pallet positions. The aircraft have a maximum structural payload of 23,500 kg (51,800lb) and a maximum range of over 2,100 nautical miles.

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Amazon to build its Prime Air primary hub at Cincinnati

Crashed on approach to Houston (IAH) on February 23, 2019

Amazon has announced it will build its primary hub on the south side of the airfield at Cincinnati-Northern Kentucky Airport (CVG).

Amazon’s $1.4 billion investment will support a fleet of 100+ Prime Air cargo planes.

CVG, state and local officials worked with Amazon on a deal to:

• Lease more than 900 acres of CVG land for 50+ years
• Construct three million square feet of buildings
• Add more than 2,700 jobs to CVG’s existing base of 10,000

The expected activity and landed weight of Amazon’s operations will enable CVG to continue lowering its landing fees, benefiting all carriers while ensuring CVG remains a great place to do business.


The Air Hub at the Cincinnati-Northern Kentucky International Airport will open in 2021.

Recently, Amazon also announced a gateway operation to launch in Wilmington, Ohio, in 2019 as well as an expanded operation in Rockford, Illinois.

In addition, Amazon issued this story:

Amazon’s expansion in Kentucky

On May 14, Amazon broke ground for a new Air Hub located in Hebron, KY at the Cincinnati/Northern Kentucky International Airport. The Air Hub will open in 2021 as part of the company’s commitment to ensure fast, free shipping for customers.

Amazon first set roots in Kentucky in 1999 when it opened two fulfillment centers. Today, Kentucky is home to 14 Amazon fulfillment and sortation centers, one customer service center and two Whole Foods Market stores. Amazon has invested more than $8 billion in the state and created more than 12,500 full-time jobs.

“Our new Amazon Air hub, opening in 2021, is part of our continued investment in Prime to ensure we have the capacity required for continued outstanding service for our customers,” said Sarah Rhoads, director, Amazon Air. “We’re proud to call Kentucky home for our air hub, creating more than 2,000 jobs in this fantastic community.”

“The commonwealth of Kentucky is thrilled to celebrate this historic day, as Amazon officially breaks ground on its $1 billion-plus Amazon Air Hub,” said Kentucky Governor, Matt Bevin. “This massive project at the Cincinnati/Northern Kentucky International Airport will be revolutionary for the region’s workforce and for our state’s overall economy. We are grateful for Amazon’s long-term commitment to Kentucky, and we are proud to see this momentous new endeavor take flight.”

“A vibrant airport with a strong air cargo footprint improves the economic vitality of our region,” said Candace McGraw, CEO, Cincinnati/Northern Kentucky International Airport. “We are grateful to the Amazon team for locating its Central Air Cargo Hub at CVG. We look forward to a long and fruitful partnership.”

“Today’s ground-breaking ceremony celebrating Amazon Air’s investment in Boone County, Kentucky, at CVG is a fantastic next step for this historic project,” said Judge/Executive Gary Moore, Boone County, Kentucky. “As one of Kentucky’s fastest-growing counties, I am enthusiastic about what this development means for Boone County—as validation of the skill level of our local workforce, advantageous geographic location, and pro-growth policies. The leaders of Boone County and our region look forward to working with Amazon for many years to come.”

Exterior rendering of the new Prime Air hub to be built at CVG.
An illustration of the exterior space of the new Amazon Air Hub at CVG.

Top Copyright Photo: Prime Air (Atlas Air) Boeing 767-375 ER (F) WL N1217A (msn 25865) ONT (Arnd Wolf). Image: 945755.

Prime Air-Atlas Air aircraft slide show:


Video:

Atlas Air Boeing 767-300F flight 5Y 3591 with N1217A crashes on approach to Houston (IAH)

Atlas Air Boeing 767-375 ER N1217A (see below) has crashed into Trinity Bay near Houston. The freighter was en route from Miami to Houston (IAH) as flight 5Y 3591 when it went into a steep dive. The aircraft was being operated for Amazon Prime Air. There were three crew members on board. There are no survivors according to the Chambers County Sheriff.

The aircraft crashed before 12:45 pm CT according to the FAA. There was no distress call to the FAA ATC.

Human remains has now been located at the site.

Atlas Air Worldwide issued this statement:

As was previously reported Atlas Air flight 3591 was involved in an accident earlier today. Three people were on board at the time.

At this stage a search investigation is underway.  In the meantime, we are providing all possible information to the families and loved ones of those on board.

The flight from Miami to Houston was a cargo flight operated by Atlas Air on behalf of Amazon.

We have activated our emergency response plans and we will be sending a specialist team to the crash site.

Everyone within the company is deeply saddened by this event. Our main priority at this time is caring for those affected and we will ensure we do all we can to support them now and in the days and weeks to come. We  have a call center available for media inquiries the number is + 1 407 205 1814.

We are now working with the emergency services and other agencies to establish the circumstances around exactly what happened. Further updates will be available on our website.

Here is the statement from the FAA:

There was a line of thunderstorms in front of the aircraft as it approached IAH.

The Chambers County Sheriff’s Office made this announcement:

The plane has been located in Jack’s Pocket at the north end of Trinity Bay.

More from Channel 2 in Houston: CLICK HERE

More from KHOU11: CLICK HERE

Below Copyright Photo: Prime Air (Atlas Air) Boeing 767-375 ER (F) WL N1217A (msn 25865) ONT (Arnd Wolf). Image: 945755.

Crashed on approach to Houston (IAH) on February 23, 2019

Video:

Amazon adds 10 additional Boeing 767-300F freighters

Amazon continues to invest in ways to provide fast, free delivery for customers.

Today, the company announced an expansion of its partnership with Air Transport Services Group, Inc. (ATSG) by leasing an additional 10 aircraft to support Amazon’s growth. Amazon previously leased 40 Boeing 767 freighter aircraft in 2016, 20 of those with ATSG, all of which are now flying serving customers in the Amazon Air network.

The 10 additional cargo planes will consist of Boeing 767-300 aircraft, will be operated on Amazon’s behalf by an ATSG airline, and will join the air cargo operation over the next two years.

Amazon Air’s operation launched in 2016 supporting package delivery to the rapidly growing number of customers who love fast delivery, great prices and vast selection. With advanced algorithms and software used for capacity and route planning, the Amazon Air operation can transport hundreds of thousands of packages per day. In addition, with Amazon’s dedicated air network, Amazon is able to deliver packages to its customers faster – 40 aircraft are flying in and out of gateway operations at over 20 airports, making two-day shipping possible almost anywhere in the U.S.

Amazon will open a new Regional Air Hub next year at Fort Worth Alliance Airport, and the Air Hub at the Cincinnati/Northern Kentucky International Airport will open in 2021. Recently, Amazon also announced a gateway operation to launch in Wilmington, Ohio, in 2019 as well as an expanded operation in Rockford, Illinois. Since its launch, Amazon’s air cargo operation has invested millions of dollars and created thousands of new jobs at locations across the U.S.

Amazon has launched several initiatives to ensure fast delivery speeds and supply chain capacity for its customers, including its Delivery Service Partner program, Amazon Flex, the company’s mobile application that allows individuals to sign-up, be vetted and begin delivering for Amazon, a dedicated network of over 10,000 trailers to increase trucking capacity and, now, the expanded fleet of air cargo planes. These efforts join Amazon’s robust worldwide network of more than 185 fulfillment centers where the company uses high-end algorithms, robotics, machine learning and other technological innovations to increase delivery speeds for customers. Amazon is now bringing the same technological expertise to efforts in the transportation space to increase shipping capacity for customers.

Amazon Air is now operating to Miami

Miami International Airport is now part of Amazon Air’s (Prime Air) cargo flight operations. The company has launched double-daily freighter service at MIA to destinations across the U.S. The new cargo service is being operated by Atlas Air Worldwide with Boeing 767-300F aircraft, and includes an onsite facility to sort packages bound for their next destination.

Amazon already operates four warehouses in Miami-Dade County, all within 12 miles of MIA – the largest of which is a new 885,000-square-foot fulfillment center at Miami-Opa locka Executive Airport just completed this year.

Amazon Air’s launch comes nine months after Miami-Dade Aviation Department (MDAD) officials hosted its first e-Commerce strategy workshop with more than 30 local air cargo industry stakeholders, with the goal of establishing Miami-Dade County as one of the world’s leading e-commerce hubs. Market research firm eMarketer forecasts Latin America to be a strong e-commerce growth region during that span, with a projected doubling of annual sales from $47.4 billion in 2015 to $84.8 billion in 2019. MIA is America’s busiest airport for international freight and handles more freight to Latin America and the Caribbean than any other U.S. airport.

Amazon Air will operate two daily flights.

Photo: MIA.

“Go Gold” special livery introduced on ATI’s N313AZ to fight childhood cancer

ATI (Air Transport International), which operates for Amazon Prime Air, has adorned its Boeing 767-338 ER (F) N313AZ (msn 24930) in a special “Go Gold” livery (left side only) to promote childhood cancer awareness.

2018 "go gold" special markings to promote awareness of childhood cancer

This special livery is a vinyl wrap that was applied at ATI’s hub in Wilmington, OH.  The aircraft was flown to SeaTac on Sunday for finishing touches and then flown to BFI on Labor Day.

The special livery is expected to survive for about 30 days.

Copyright Photos: Prime Air (ATI) Boeing 767-338 ER (F) N313AZ (msn 24930) (go gold) BFI (Joe G. Walker). Image: 943407.

ATI-Prime Air aircraft slide show:

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Atlas Air Worldwide reports record fourth quarter results, strong outlook for 2018, will add four more Boeing 747-400s

Airline Color Scheme - Introduced 2000

Atlas Air Worldwide Holdings, Inc. has announced record fourth quarter and full-year 2017 revenue, record fourth-quarter earnings and robust full-year earnings growth, and a continued strong outlook in 2018.

“2017 was an exciting year for Atlas and we expect that to continue in 2018,” said President and Chief Executive Officer William J. Flynn.

“The strategic initiatives that we have put in place over many years have transformed our company. Our focus on express, e-commerce and fast-growing Asian markets has broadened our customer base and fleet. As a result, we were well-positioned to capitalize on market dynamics and deliver fourth-quarter and full-year volumes, revenues, EBITDA and net income that grew sharply compared to the prior-year.

“In addition, our fourth quarter and full-year results benefited from the passage of the U.S. Tax Cuts and Jobs Act in late December, which generated a significant gain related to the revaluation of our net deferred tax liabilities.

“We expect the new tax legislation to have a positive impact on economic activity and corporate growth. On passage of the law, we were pleased to provide a one-time bonus of $1,000 to our global personnel in recognition of their hard work and commitment to the company’s growth.”

Turning to 2018 and beyond, Mr. Flynn stated: “We are operating in a strong airfreight environment, underpinned by global economic growth.

“We see tremendous opportunity for continued growth in the express and e-commerce markets, fueled by a bourgeoning middle class with higher levels of disposable income. Further globalization will require expansive and time-definite air networks to facilitate the international flow of goods.

“From a regional perspective, we believe Asia is key. It is an important geography to global trade, the source of 40% of global airfreight demand, and the main contributor to the expanding global middle class.

“In addition to the demand we are seeing for our aircraft and services, we are capitalizing on the quality, scale and scope of our operations to drive our revenues and earnings to greater levels. As a result, we expect our adjusted net income to grow by a mid-twenty-percent level in 2018 compared with 2017, including the benefit of a lower corporate income tax rate.

“By comparison, even without any benefit from tax reform, we would have expected our 2018 adjusted net income to grow by a teens percentage.”

Fourth-Quarter Results

Volumes in the fourth quarter of 2017 increased 18% to 71,563 block hours, with revenue growing 19% to a record $628.0 million.

Reported income from continuing operations, net of taxes, during the period totaled $209.5 million, or $6.71 per diluted share, compared with $28.7 million, or $1.12 per diluted share, in the fourth quarter of 2016. Reported results for the latest quarter included a $130.0 million benefit related to the revaluation of our deferred tax liabilities as well as an unrealized gain on outstanding warrants of $23.7 million. Results in the year-ago period included an unrealized loss of $27.9 million on outstanding warrants.

On an adjusted basis, income from continuing operations, net of taxes, in the fourth quarter of 2017 increased 13% to a record $66.6 million, or $2.43 per diluted share, from adjusted income of $59.0 million, or $2.24 per diluted share, in the year-ago quarter. EBITDA, as adjusted, increased 14% to $162.7 million.

Record ACMI segment revenues and contribution in the fourth quarter of 2017 were primarily driven by significant growth in block-hour volumes, partially offset by higher line maintenance and labor-related operational disruptions. Block-hour growth during the period reflected 747-400 flying for several new customers, 747-8 flying for Cathay Pacific Cargo, additional seasonal flying for express operators, and the ramp-up of 767-300 operations for Amazon. Five new 767-300s were placed in service for Amazon during the quarter, raising the current number to 12, in line with our expectations when we began ramping up this new service in 2016 and in line with our expectations for a total of 20 aircraft by the end of 2018.

Prime Air (Atlas Air) Boeing 767-36N ER (F) N1093A (msn 30111) ONT (Michael B. Ing). Image: 937468.

Above Copyright Photo: Prime Air (Atlas Air) Boeing 767-36N ER (F) N1093A (msn 30111) ONT (Michael B. Ing). Image: 937468.

Prime Air-Atlas Air aircraft slide show:

Higher Charter segment contribution during the period was primarily driven by an increase in commercial yields, partially offset by higher maintenance costs, the redeployment of 747-8 and 747-400 aircraft to the ACMI segment, and labor-related operational disruptions. Higher average rates during the quarter primarily reflected the impact of strong commercial yields.

In Dry Leasing, higher segment contribution primarily reflected a reduction in interest expense due to the scheduled repayment of debt related to dry leased 777 aircraft and the placement of additional 767-300 converted aircraft.

Reported earnings in the fourth quarter of 2017 also included an effective income tax benefit rate of 95.7%, due mainly to the revaluation of our deferred tax liabilities as a result of the Tax Cuts and Jobs Act. On an adjusted basis, our results reflected an effective income tax rate of 31.4%.

Full-Year Results

Volumes in 2017 increased 20% to 252,802 block hours, with revenue growing 17% to a record $2.16 billion.

For the twelve months ended December 31, 2017, our continuing operations generated income of $224.3 million, or $8.68 per diluted share, which included the $130.0 million benefit related to the revaluation of our deferred tax liabilities, partially offset by an unrealized loss on financial instruments of $12.5 million related to outstanding warrants. For the twelve months ended December 31, 2016, our income from continuing operations totaled $42.6 million, or $1.70 per diluted share, including the negative impacts of transaction-related expenses and warrant accounting totaling $25.0 million.

On an adjusted basis, income from continuing operations in 2017 increased 17% to $133.7 million, or $4.93 per diluted share, compared with $114.3 million, or $4.50 per diluted share, in 2016. EBITDA, as adjusted, rose 12% to $428.6 million.

Reported earnings in 2017 also included an effective income tax benefit rate of 56.5%, due mainly to the revaluation of our deferred tax liabilities as a result of the Tax Cuts and Jobs Act. On an adjusted basis, our results reflected an effective income tax rate of 28.4%.

Cash and Short-Term Investments

At December 31, 2017, our cash, cash equivalents, short-term investments and restricted cash totaled $305.5 million, compared with $142.6 million at December 31, 2016.

The change in position resulted from cash provided by operating and financing activities, partially offset by cash used for investing activities.

Net cash provided by financing activities during 2017 primarily reflected proceeds from our issuance of convertible notes and our financings of 767-300 aircraft, partially offset by payments on debt obligations. During the fourth quarter of 2017, we completed the financings of six additional 767-300 aircraft, which generated cash of $145.8 million.

Net cash used for investing activities during 2017 primarily related to capital expenditures and payments for flight equipment and modifications, including the acquisition of 767-300 aircraft to be converted to freighter configuration, spare engines and GEnx engine performance upgrade kits.

2018 Outlook

We expect to report strong earnings growth in 2018.

We begin 2018 with solid demand from our customers for our aircraft and services. With the essential building blocks we have set in place, we see opportunities to grow with existing customers and to add new ones.

Globally, economic activity is expanding. The airfreight market is strong, and airfreight tonnage continues to grow from record levels.

As a result, we expect significant growth in our volumes, revenue and adjusted EBITDA in 2018. We see volumes rising to around 300,000 block hours, revenue growing to approximately $2.5 billion, and adjusted EBITDA of about $500 million.

We anticipate that our full-year 2018 adjusted net income will grow by a mid-twenty-percent level compared with 2017, including the benefit of tax reform. Without tax reform, we would have expected our adjusted net income to grow by a teens percentage this year. We expect our full-year 2018 adjusted income tax rate to be approximately 17%.

Given the inherent seasonality of airfreight demand, we anticipate that results in 2018 will reflect historical patterns, with more than 70% of our adjusted net income occurring in the second half. In addition, we expect adjusted EBITDA of approximately $90 million in the first quarter of 2018, and adjusted net income to be approximately double adjusted net income of $8.3 million in the first quarter of 2017.

For the full year, we anticipate total block hours will increase approximately 19% compared with 2017, with about 75% of our hours in ACMI and the balance in Charter. To meet the anticipated increase in ACMI and Charter demand, we have entered into operating leases for six Boeing 747-400 freighter aircraft. Two of these aircraft entered service in the third quarter and fourth quarter of 2017; four will enter service throughout 2018.

Aircraft maintenance expense in 2018 is expected to total approximately $315 million, mainly reflecting an increase in daily line maintenance due to the anticipated growth in block hours. Depreciation and amortization is expected to total approximately $220 million. In addition, core capital expenditures, which exclude aircraft and engine purchases, are expected to total approximately $100 to $110 million, mainly for parts and components for our fleet.

Top Copyright Photo: Atlas Air Boeing 747-47UF N415MC (msn 32837) ANC (Michael B. Ing). Image: 925067.

Atlas Air aircraft slide show:

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