Amazon - Now in the package delivery business - Curt Lewis

FedEx: Amazon jet lease was expected

FedEx officials weren't surprised by Wednesday's confirmation that e-commerce giant Amazon has agreed to lease 20 air freighters and buy a stake in Air Transport Services.

Amazon said it has finalized an agreement to lease Boeing 747 freighters from the Wilmington, Ohio-based transport company as part of a push to build out U.S. delivery infrastructure.

FedEx officials have maintained they don't view Amazon's growing transportation capability as a serious threat to the major players in e-commerce deliveries: FedEx, UPS and the U.S. Postal Service.

"Today's announcement is not a surprise," Patrick Fitzgerald, FedEx senior vice president, integrated marketing and communications, said. "We work closely with Amazon and have been aware for some time about their need for supplemental air capacity related to inventory management. Amazon continues to be a valuable FedEx customer."

Amazon has been adding sorting centers and delivery trucks to keep up with business volume.

Amazon says the goal is not to compete with package delivery carriers such as FedEx and UPS but to improve logistics to serve customers better.

The aircraft leases are for five to seven years. The agreement for the operation of the aircraft will be for five years.

Amazon is also taking a stake in the Wilmington, Ohio-based company. It will get warrants to buy during a five-year period up to 19.9 percent of the company's shares at $9.73 per share.

Dave Clark, Amazon's senior vice president of worldwide operations and customer service, said in an emailed statement that the agreement will help supplement its existing delivery network and ensure the company has the air cargo capacity to support one- and two-day delivery for its customers.