Hawaiian Holdings, Inc. (NASDAQ: HA), the parent company of Hawaiian Airlines, Inc., today announced an agreement with Amazon.com, Inc. and its subsidiaries (NASDAQ: AMZN) to operate and maintain an initial fleet of 10 Airbus A330-300 freighters starting in the fall of 2023. Hawaiian will maintain and fly Amazon's A330s under Hawaiian's FAA air carrier certificate to move cargo between airports near the online retailer's operations facilities.
The initial 10 aircraft will enter into service in 2023 and 2024. The agreement also contemplates the ability to expand the fleet depending on Amazon's future business needs.
In preparation for service for Amazon, Hawaiian intends to establish a pilot base on the continental U.S., grow existing maintenance bases, and expand the hiring of pilots, mechanics, dispatchers, supply chain employees and others who will help support this new cargo operation.
Said Hawaiian CEO Peter Ingram, “We are excited to help serve Amazon customers by providing additional air cargo capacity and logistics support. This recognizes our experience in providing safe and reliable operations, our incredible front-line team, and our shared focus on the customer.
In connection with the commercial agreement, the Company issued Amazon warrants to acquire up to 15% (post-issuance) of its common shares. The warrants are exercisable over the next nine years.
HA shares grabbed $1.10, or 7.8%, to $15.18, while AMZN shares handed back 25 cents to $115.00.
