FedEx opts for long-term peak season freighter deal with Atlas

FedEx has moved to a long-term agreement with lessor Atlas Air to provide it with extra freighter aircraft to cover extra demand during the peak shipping season.
Atlas Air revealed today that it had entered into a five-year agreement with FedEx Express that will see it provide the parcel giant with five Boeing 747-400 freighter aircraft for the peak flying season between 2017 and 2021.
Peak season flying generally occurs in the month of December and potentially earlier. An agreement to provide five aircraft for the 2016 peak season flying is already in place.
The aircraft lessor said it was the first time the two companies had entered into a long-term agreement for the provision of aircraft during the peak.
Atlas Air Worldwide Holdings president and chief executive William Flynn said: “We have worked closely and successfully with FedEx for many years, but this is our first agreement that allows both companies to plan for the longer term. We are excited to continue to serve FedEx and its customers.”
The company has already made inroads into the express market – it has deals with DHL, UPS, FedEx, China Post and other express firms
Atlas Air also recently signed a deal to provide Amazon with a fleet of 20 B767-300 aircraft, with the first aircraft entering service in August.
In June of this year, Atlas revealed that it would target the express and e-commerce markets as growth in the traditional air cargo market slowed.
During an investor day event, Flynn pointed out that the traditional airfreight market, not including express and charter demand, grew by 2.4% last year, according to IATA, while Bank of America and Merrill Lynch estimate the express market increased by 4.9% and e-commerce was up by 20.4%.