Moderators: richierich, ua900, PanAm_DC10, hOMSaR
MajMattMason wrote:Warrants exercised by AMZ
“ATSG announced that Amazon chose to exercise warrants that we committed to issue to them in 2016. After regulatory review, we expect Amazon to become our largest shareholder with approximately 19.5% of ATSG shares.”
Next up....AAWW??
GoodRide wrote:https://cargofacts.com/allposts/business/strategy/amazon-foregoes-atlas-air-board-seat-by-keeping-holdings-low/
Re: AAWW
Spacepope wrote:GoodRide wrote:https://cargofacts.com/allposts/business/strategy/amazon-foregoes-atlas-air-board-seat-by-keeping-holdings-low/
Re: AAWW
Hey since Cargofacts is usually behind a paywall and most of us aren't gonna fork over that kind of money as enthusiasts, could you provide a little synopsis of what's going on in the link?
wjcandee wrote:There was no way Amazon wasn't going to do this. They're exercising warrants for about 13.5 million shares. The warrant exercise price is like $9/share. ATSG is trading at like $29 (and I remember when it was under a buck). So that's a $20/share profit times 13.5 million shares, or about $270 million profit. That's a gigantic pile of money, even to an Amazon.
And they had to do it by right around now or the warrants were going to expire.
autopiloton wrote:Wondering what they paid for each of the 11 aircraft they bought. If they just sell the stock for 270 million it could easily fund some if not all of the purchase. I’m not financially savvy so not sure if that’s even possible but would be good business if it is.wjcandee wrote:There was no way Amazon wasn't going to do this. They're exercising warrants for about 13.5 million shares. The warrant exercise price is like $9/share. ATSG is trading at like $29 (and I remember when it was under a buck). So that's a $20/share profit times 13.5 million shares, or about $270 million profit. That's a gigantic pile of money, even to an Amazon.
And they had to do it by right around now or the warrants were going to expire.
USAirKid wrote:autopiloton wrote:Wondering what they paid for each of the 11 aircraft they bought. If they just sell the stock for 270 million it could easily fund some if not all of the purchase. I’m not financially savvy so not sure if that’s even possible but would be good business if it is.wjcandee wrote:There was no way Amazon wasn't going to do this. They're exercising warrants for about 13.5 million shares. The warrant exercise price is like $9/share. ATSG is trading at like $29 (and I remember when it was under a buck). So that's a $20/share profit times 13.5 million shares, or about $270 million profit. That's a gigantic pile of money, even to an Amazon.
And they had to do it by right around now or the warrants were going to expire.
Money is fungable, so amazon made $270 million in profit and spent some money on buying planes. Which profits funded what isn't really a major issue. (This presumes that all of this happened within the same legal entity, e.g. Amazon, Inc. vs Amazon Services LLC, etc. If there was some entity crossing there may have been some cross division investment or loans, but ultimately thats an exercise for liability and tax reasons.)
autopiloton wrote:N503AZ should be coming out of paint today and heading to ILN for conformity. I also heard that N739AX was getting its paint slot moved up to after its C check..so any day now. Maybe replacing N376ANs original paint slot? It would be the second 200 in the new ATI livery.
wjcandee wrote:So 767-300 N227AZ is officially on the move tonight! This is the former N388AA, which was back from TLV conversion around January 18, then got worked on at ILN, went for paint at ROW, and has been back from paint since 2/27/21 (so 10 days). And tonight's her first revenue flight, from ILN to SEA. Woo-hoo! https://flightaware.com/live/flight/N227AZ
Interestingly, she was originally marked down for a little later in the order of the first 5 of 2021, but now she's going to work a little-sooner. All 5 are supposed to be in service by the end of March. 227AZ is the second currently-flying 2021 767-300. She's really the 4th, but the other two went in service and then came back out to be painted and such. The others we will see this month will be N381AN (which will be N479AZ, currently in paint in ROW), N499AZ (which flew temporarily in AA livery but then went to GUS for paint), and N385AM, which will end up being N229AZ.
Since N503AZ will be going on the ATI certificate, we'll see her as soon as she's done with conformity and Amazon wants her in the air. She's still in paint at VCV, where she has been for a little over two weeks (16 days), and our friend autopiloton indicates that she should be heading to ILN soon. So we could see 6 or more new-for-2021 aircraft in the air by the end-ish of March.
MO11 wrote:Cargo Aircraft Management bought JA606A yesterday (N391CM)
alpine1989 wrote:How long before Amazon is selling public charters operated by Omni?
Alpine
wjcandee wrote:Also, the public charter business is largely-dead. There are a few routes that make it work, and Omni's primary customer in this regard, who operated a successful Las Vegas to Hawaii business, will likely come back some time this year. But given the proliferation of ULCCs and low-fare availability on the majors, the fare difference to arbitrage just isn't typically there anymore. Sometimes there's an odd international underserved lane that this can work on, say a couple of times a week during the summer, but it's a very-niche business that often ends in tears for the charter sponsor.
stretch8 wrote:Any word when N503AZ B763 at VCV is heading to ILN? Assuming she's been painted. Noticed N227AZ B763 did ILN-SEA March 10, 2021, & SEA-ILN March 11, 2021 - her 1st & 2nd missions with Amazon. She's still at ILN, so maybe she has a few "fix-me" issues? cheers!
travaz wrote:wjcandee wrote:Also, the public charter business is largely-dead. There are a few routes that make it work, and Omni's primary customer in this regard, who operated a successful Las Vegas to Hawaii business, will likely come back some time this year. But given the proliferation of ULCCs and low-fare availability on the majors, the fare difference to arbitrage just isn't typically there anymore. Sometimes there's an odd international underserved lane that this can work on, say a couple of times a week during the summer, but it's a very-niche business that often ends in tears for the charter sponsor.
Asking because I don't know. Isn't Omni mostly military charters?
autopiloton wrote:Well apparently the information I was given was wrong. Looks like N739AX is scheduled to ATL tonight so it won’t be going to paint after C-check and N503AZ hasn’t left for ILN yet. Constantly changing schedules I guess.
MO11 wrote:N499AZ leased to Amazon yesterday.
rudywilliams wrote:N503AZ scheduled to ILN today.
wjcandee wrote:rudywilliams wrote:N503AZ scheduled to ILN today.
Thanks for that heads-up! And she's on the way now.
About time. Remarkable that IAC would take 3 weeks to paint a 767. It's always 14 days at the two contractors that ATSG uses. Good point by Stretch8 that maybe this means some extra color on her, since she's the first Amazon-owned one.
Regardless, so happy to see the first Amazon-owned 767 headed into conformity for ATI.
(Side note: DL in particular is painting planes like crazy. Right now at GUS, Dean Baldwin has at least 4 lines going for them, with the 5th one being used to paint a recently-acquired-by-UPS MD11 that flew up from SAT after a heavy-check at VT San Antonio; apparently Dean Baldwin didn't have availability in its VT-connected SAT facility, so the MD11 went to their shop in GUS instead. Landlocked has at least two lines going on DL alone. ROW seems busy. And on and on.)
(Side side note: The UPS MD11 being painted at GUS is N263UP, which UPS acquired from Lufthansa Cargo in November 2020, and sent to SAT on December 9, 2020. Finished up in SAT on March 1, 2021 (almost 3 months), then off to paint. VERY COOL that present circumstances have UPS bringing aboard good-quality MD11s still. They're a solid freight-hauler, when they're properly-maintained.)
stretch8 wrote:SE-RLA B762 West Atlantic is out of hangar at ILN now wearing N747AX, & is a white whale. Anyone know if she's going back on ABX duty, or maybe off to join N742AX as a lease to Astral? cheers!
stretch8 wrote:N381AN / N479AZ B763 is enroute ROW-ILN, scheduled landing 1436L. Apparently, N390AA B763 at TLV flew today for 1 hour! cheers!
stretch8 wrote:ANA9433 B763 is routing HNL-ILN arriving 16 March 2021 at 1023L - scheduled, originated HND. She going to CAM or Amazon? cheers!
Spacepope wrote:stretch8 wrote:ANA9433 B763 is routing HNL-ILN arriving 16 March 2021 at 1023L - scheduled, originated HND. She going to CAM or Amazon? cheers!
CAM's Amazon fleet is all non-FADEC engines, and the ANA 767s are FADEC. Likely not to CAM for Amazon service, but potentially for Cam to dry lease out like the FADEC-equipped ones they have out at UPS.
autopiloton wrote:I’m with spacepope..I need a spreadsheet! To that note I’m doing some math and it’s not adding up. Sorry if this has been discussed before.
Amazon/ATSG announced that ATI would be awarded the first six of the twelve CAM leased aircraft. The first aircraft was already being operated and the additional five would be added the first half of 2021.
From what I can see, ATI is on pace to be operating 8 CAM leased aircraft. That would mean that Amazon has awarded ATI two additional CAM aircraft without any formal announcement. The ultimate question is who gets the remaining four? History would say ATI is the likely operator but that would mean adding 14 aircraft in a year! A tough feat to accomplish.
Spacepope wrote:autopiloton wrote:I’m with spacepope..I need a spreadsheet! To that note I’m doing some math and it’s not adding up. Sorry if this has been discussed before.
Amazon/ATSG announced that ATI would be awarded the first six of the twelve CAM leased aircraft. The first aircraft was already being operated and the additional five would be added the first half of 2021.
From what I can see, ATI is on pace to be operating 8 CAM leased aircraft. That would mean that Amazon has awarded ATI two additional CAM aircraft without any formal announcement. The ultimate question is who gets the remaining four? History would say ATI is the likely operator but that would mean adding 14 aircraft in a year! A tough feat to accomplish.
Something to work on when I get back from a biz trip I guess.
The 2 mystery frames you’re accounting for are the first 2 of the amazon owned frames, both ex Westjet. There are still 9 of them that amazon owns (2 ex Westjet and 7 ex Delta) that have yet to be awarded, and afaik there are still 6 of the CAM owned aircraft that still haven’t had flying awarded yet.
I might do a google sheet so ambitious contributors here can help with updates