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Amazon Orders Will Be Flown By a Major Passenger Airline

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Amazon Orders Will Be Flown By a Major Passenger Airline

(CTN News) – Hawaiian Holdings (HA) shares jumped after the airline announced it had reached an agreement with Amazon (AMZN) to operate 10 leased freighter jets.

This deal will give the e-commerce giant warrants to buy up to 15% of the airline holding company’s shares

Amazon Prime One-Day delivery, moving items between warehouses, and moving items between suppliers will be among the uses of Airbus A330-30 planes, which will be in service starting in 2023 and 2024.

A ‘catalyst’ relationship between Amazon and airlines

Hawaiian Airlines has a long history of operating as a freight airline due to Hawaii’s isolation from the rest of the country.

In 1942, it became the first commercial airline to be certified to transport cargo. During World War II, an urgent need to transport supplies to the South Pacific led to the emergency authorization.

When it comes to shipping, there is a lot of business to be had in the age of e-commerce.

Buying used Boeing (BA) aircraft from Delta (DAL), chartering private ships, and even building its own cargo containers have been some of Amazon’s efforts to prevent supply chain disruptions.

Peter Ingram, Hawaiian Airlines CEO, said in a statement, “We’re excited to help Amazon customers.” “This partnership provides the opportunity to grow our business and diversify our revenue sources.”

Hawaiian Airlines plans to establish a pilot base on the U.S. mainland and expand its pilot, mechanic, dispatcher, and supply chain teams.

There’s a shortage of pilots

Staffing shortages are affecting the whole airline industry. By 2023, North American airlines will be short 12,000 pilots, and the Air Force has 1,500 fewer pilots than it needs.

Because of the high cost of training and mandatory retirement age, pilots are especially hard to come by, but a dearth of airport workers has led to serious backlogs.

In July, Delta flew an Airbus A330-200 from London to Detroit with no passengers, but over 1,000 pieces of luggage that were stranded at various airports across Europe because there weren’t enough baggage handlers.

Amazon Air was launched in 2015 to transport packages and inventory needed to fulfill orders. Amazon leased planes from other operators for a few years.

In January 2021, it bought its first Boeing 767-300.

Shippers are still in high demand, even though freight operators are down from pandemic highs.

By mid-day Friday, shares of both companies were up 2% and 14%, respectively. Hawaiian Holdings stock jumped 14% while Amazon shares were up 2%.

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