Amazon will use Hawaiian Airlines to operate cargo planes

HONOLULU (AP) — Hawaiian Airlines will operate 10 cargo planes for Amazon.com starting next fall under a deal that could eventually involve more planes and give Amazon a 15% stake in the airline.

The airline’s parent company, Hawaiian Holdings Inc., said Friday that it will fly and maintain an “initial fleet” of 10 leased Airbus A330-300 jets for the retail giant. The fleet could grow “depending on Amazon’s future business needs,” the company said.

Hawaiian said it issued warrants that Amazon can exercise over the next nine years and acquire up to 15% of Hawaiian stock.

Shares of Hawaiian Holdings jumped 13% in morning trading on Friday.

Hawaiian said it won’t use any of its current planes to serve Amazon, but instead Amazon’s air division will lease the first 10 planes -- which will be converted from passenger jets to freighters -- from leasing company Altavair.

“This relationship provides a catalyst to grow our business and the unique opportunity to diversify our revenue sources while capitalizing on our established strengths,” said Hawaiian CEO Peter Ingram.

Sarah Rhoads, a vice president for Amazon’s global air unit, said the deal reflects Hawaiian’s record operating its own A330 aircraft.