We Finally Know What Company Will Conduct Amazon's Air Deliveries, And Its Stock Is Soaring

Amazon.com, Inc. AMZN has been rumored to be expanding its delivery capabilities for quite some time now. With a partnership between Air Transport Services Group Inc. ATSG in September 2015, and ramped up activity by the latter in early 2016, there has been substantial support for the idea that the e-commerce giant is prepping for a big splash into air delivery.

According to MarketWatch, an air cargo deal has now been reached.

The Deal

Air Transport Services confirmed the deal and has stated that the terms include leasing 20 Boeing 767s to Amazon's Fulfillment Services Inc, with lease terms for five to seven years and an operating agreement term of five years. The deal also outlines that Amazon has access to up to 19.9 percent of Air Transport Services stock into 2021 at $9.73/share.

Related Link: Amazon Rumored To Be Expanding Its Delivery Service

Air Transport Services CEO Joe Hete commented in a statement, "Since last summer, we have been working closely with Amazon to demonstrate that a dedicated, fully customized air cargo network can be a strong supplement to existing transportation and distribution resources."

Air Transport Services was up 19.97 percent at $14.12.