The agreement steps up the e-commerce giant’s growing rivalry with United Parcel Service Inc. and FedEx Corp.
is poised to take a stake in the parent of Hawaiian Airlines as part of a deal to expand the e-commerce giant’s cargo-hauling operations using a fleet of Airbus freighters.
The agreement may signal a revival of Amazon plans, reported in 2021, to use long-range Boeing Co. and Airbus freighters to move goods using its own planes, stepping up its rivalry with United Parcel Service Inc. and FedEx Corp. It also offers a new source of income to Hawaiian amid a slow rebound in Asia-Pacific travel, with some countries only recently lifting coronavirus-related travel restrictions.
Eager to expand the reach of its delivery network and reduce its dependence on third-party carriers, Amazon put together a fleet of leased and purchased aircraft acquired from other companies, typically at a discount to new models rolling off the assembly line. The service, which relies on pilots from a handful of partner carriers, has grown rapidly in recent years, tacking on new airport hubs while leasing and purchasing more aircraft.
“This relationship provides a catalyst to grow our business and the unique opportunity to diversify our revenue sources while capitalizing on our established strengths,” Hawaiian Chief Executive Officer Peter Ingram said in the statement.
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