MIAMI – 21 Air, a small cargo airline based in Miami, on Thursday began operating the first of seven Boeing 767-300 freighter aircraft on behalf of Amazon as the e-commerce behemoth pivots from long-time partner Atlas Air to other cargo airlines that can support its domestic air delivery network.
Amazon has selected 21 Air, which is controlled by Houston Astros owner Jim Crane and his investment firm in a joint venture with Canadian freighter operator Cargojet, as an air transport provider, Amazon spokeswoman Alexa Clark confirmed.
The e-tailer’s air logistics arm is reassigning the seven medium widebody freighters from Atlas Air to 21 Air, according to an outside source familiar with the all-cargo operator who asked for anonymity to protect industry relationships, and messages from pilots in an online forum. Amazon will continue to lease the aircraft from Titan Aviation, an Atlas Air sister company.
The move is the final installment in a breakup with Atlas Air that has already seen Amazon (NASDAQ: AMZN) transfer 10 Boeing 767-300 freighters from Atlas to ABX Air, a subsidiary of major Amazon vendor Air Transport Services Group (ATSG), and make plans to reallocate eight Boeing 737-800 to Sun Country Airlines next year.
Atlas Air disclosed in late May that it would cease providing outsourced air cargo service for Amazon next year after both parties agreed to terminate contracts under which Atlas provided crews, routine maintenance and insurance (CMI) for 25 converted freighters. Atlas Air management said relinquishing the domestic Amazon business would free the company to focus on bread-and-butter international flying.
“We regularly work with our air carrier partners and adjust operations when we need to in order to better serve our customers,” Clark said, without providing further details of the 21 Air transportation services agreement.
21 Air so far has one Amazon-supplied 767 on its operating certificate and operated the first flight on Thursday from Miami to Amazon’s national hub at Cincinnati-Northern Kentucky International Airport, according to flight tracking site Flightradar24.
Trade publication Cargo Facts previously reported that Amazon recently added 21 Air as a contract air carrier. 21 Air’s corporate headquarters is in Greensboro, North Carolina.
The Amazon additions will bring 21 Air’s fleet to 15 767s. It currently operates eight 767s, including five on behalf of DHL Express, according to aircraft databases.
21 Air’s business model is essentially being a white-label carrier for other airlines that need capacity or providing flight services for customers who have aircraft but aren’t certified to run an airline. In the latter case, the customer is responsible for fuel, other operating expenses and selling the cargo space. The arrangement places the risk on the customer, who guarantees payment for a minimum number of flight hours whether the planes are full or not.
The deal with Amazon was consummated under the leadership of new CEO Tim Strauss, who left as CEO of Miami-based Amerijet International a year ago when ownership began a restructuring. 21 Air has yet to announce Strauss’ hiring, but three sources with intimate knowledge of the company said Strauss took the helm several months ago. The top executive listed on the company’s website is Chief Operating Officer Michael Mendez, who previously was CEO.
Company representatives, including Strauss, did not return calls, texts and emails asking about the leadership changes.
21 Air sold a 25% stake in 2021 to Cargojet.
The addition of 21 Air restores Amazon’s roster of air cargo suppliers to five. The other carriers are ABX sister airline Air Transport International and Hawaiian Airlines, which recently began operating a handful of Airbus A330-300 medium freighters for Amazon. Including smaller air networks in Europe and India, Amazon has about 100 jets in its cargo fleet.
Amazon created an in-house airline in 2016 to better meet consumer expectations for next-day and two-day package delivery. Now it is entering the for-hire cargo market, offering in September to carry all manner of general and specialized cargo for logistics companies in an effort to generate revenue from excess capacity and become a domestic alternative to FedEx and UPS.
Amazon Air Cargo, the air cargo sales unit within Amazon Air, is able to ensure freight forwarders their shipments will fly as booked even when prized parcel volumes rise because of the company’s dynamic routing technology and multiple routing options, General Manager Tom Bradley told an industry group here last week.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
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