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Yup, this is how it is structured (more or less), and one thing Amazon has proven over and over is they are really good at what they do but they are not so good at understanding that they do, in fact, have a big boss called the federal government. And a little branch of that government known as the FAA has a huge hard on for certificated operators proving they are maintaining "operational control" over their airline and not being bossed around by their customers. I wonder if they are watching this entire situation very closely? And, on top of the basic legal wrangling, Trump and Bezos seem to have a little rivalry going. Who knows what is bubbling right beneath the surface.Originally Posted by wjcandee
For what it's worth, the agreements actually work this way. Amazon dry leased the CAM 767-200s for 5 years. They dry leased the CAM 767-300s for seven years. Whatever the lease rates are on those airplanes, they are paid directly by AFS to CAM. Separately, Amazon and the ATSG carriers entered into a CMI agreement for 5 years, terminable at Amazon's convenience on 180 days notice. With respect to Atlas, the 767-300s are dry leased by Amazon from Atlas leasing subsidiaries Titan and Andromeda for 10 years, with the AFS/Atlas Air CMI agreement being for 7 years, with a similar termination for convenience provision. All of the Amazon Prime Air aircraft are controlled by Amazon; they can't be used by the carriers for anything else, and on 180 days notice, Amazon can place any of them with any carrier they wish. 1709A, 255CM and 395CM are aircraft that are dry leased by each of Atlas and ATI from their respective leasing companies, and are used by those carriers for whatever purpose they wish, including as backups if necessary for their Amazon contracts.