Amazon is Investing in Airplanes
(CNN MONEY) Forget drones. Jeff Bezos continues to invest in a 20th century flying innovation that helps deliver all of its packages -- airplanes.
Amazon announced a deal with cargo freight airline Atlas Air Worldwide on Thursday.
Shares of Atlas (AAWW) soared more than 25% on the news.
This is the second deal Amazon has struck with a cargo company this year.
In March, Amazon agreed to lease 20 Boeing (BA) 767s from Air Transport Services Group (ATSG). Amazon was granted warrants as part of this deal as well, an investment that could eventually give Amazon at 19.9% stake in Air Transport Services Group.
Amazon subsequently exercised some of those warrants and now holds a 9.99% stake in the airline.
Unsurprisingly. Air Transport's stock has been on fire this year as well. It has surged nearly 40%.
Dave Clark, Amazon's senior vice president of worldwide operations, said in a release that the investment will help Amazon get more packages to its "rapidly growing number of Prime members who love ultra-fast delivery."
Clark made similar comments after the Air Transport deal was announced in March.
But by investing in its own cargo fleet, it looks like Amazon may now have a leg -- or in this case wheels -- up on the competition.