Hawaiian Airlines (HA) is gearing up to expand its partnership with retail behemoth Amazon (AMZN) as the e-commerce giant ushers in a new era of air logistics with the introduction of Airbus A330 freighters. The move comes as Amazon’s aging Boeing 767 fleet faces retirement, opening the door for Hawaiian Airlines to capture more business from the tech giant. Hawaiian Airlines’ CEO, Peter Ingram, expressed optimism about the collaboration’s potential, with the first A330-300 freighter set to take flight in October.
Hawaiian Airlines received its maiden A330-300 freighter in July, and its air and maintenance crews are diligently familiarizing themselves with the aircraft and airport ground procedures for cargo operations. The Honolulu-based carrier is poised to commence flights for Amazon Air under a 10-year contract, a deal struck last fall that will eventually see Hawaiian Airlines operate 10 package freighters on Amazon’s behalf.
The decision by Amazon to incorporate the A330-300 into its air logistics operation marks a strategic shift, as its older Boeing 767s, previously its workhorses, are nearing the end of their service life. The scarcity of passenger planes available for conversion to cargo configurations has driven Amazon to embrace the A330.
Peter Ingram, CEO of Hawaiian Airlines, sees this as a golden opportunity for growth, echoing the airline’s previous decision to switch to A330-200s for its passenger fleet 13 years ago. Ingram emphasized the importance of operational efficiency and punctuality, two qualities shared by both Hawaiian Airlines and Amazon, as key drivers of future success.
“We’re very on-time focused in our passenger business, and I know Amazon is very on-time focused in their business. So the best way we can put ourselves in a position for growth in the future is by operating well, with a high completion factor and with great on-time performance,” said Ingram.
While Amazon has revealed the routes for the first two A330 freighters, they remain undisclosed. Flight activity data from Flightradar24 suggests that the initial A330 freighter conducted practice flights at San Bernardino Airport in California, near Amazon’s West Coast regional air hub. Subsequently, it arrived at Cincinnati/Northern Kentucky International Airport (CVG), where both Amazon’s national superhub and Hawaiian Airlines’ pilot base are located.
It remains uncertain if San Bernardino will become the primary destination for the A330, with the possibility that it was merely a convenient location for pilot training. However, a trunk route between CVG and a key secondary hub, such as San Bernardino, makes logical sense for a large cargo jet like the A330.
Hawaiian Airlines is committed to operating the A330 cargo jets within Amazon’s U.S. mainland air network, with a focus on expediting the delivery of online orders. Ingram also hinted at the possibility of discussing trans-Pacific or other international routes if Amazon expresses the need for such services.
Amazon currently collaborates with two air partners that operate 767s on its behalf. Air Transport Services Group (ATSG) operates 47 Boeing 767s for Amazon, while Atlas Air has 18 in its Amazon fleet. This year, Amazon returned five older 767-200s to ATSG, primarily consisting of larger 767-300s. The A330s being placed with Hawaiian Airlines will replace these aging 767-200s, according to Amazon officials.
The collaboration between Amazon and Hawaiian Airlines emerged after Amazon decided to invest in the A330 fleet. Hawaiian’s experience operating the A330 for passengers gave it an inside track in securing the transport service contract with Amazon.
Amazon typically selects carriers that already have the aircraft on certificate, as it can take nearly a year and costs between $6 million and $8 million to put an aircraft on certificate with the Federal Aviation Administration, explained ATSG Chief Executive Rich Corrado.
Mike Berger, ATSG’s Chief Strategy Officer, expressed readiness for ATSG to potentially become an A330 operator in the future. The company had previously diversified its leasing program by investing in used A330 passenger jets, which are overhauled to carry large pallets.
Amazon’s lease of the Airbus jets from Altavair includes the post-passenger planes being sent to EFW for interior ruggedization and cargo door installation. Hawaiian Airlines will receive its second A330 in December, entering service in early 2024. By the end of 2024, the airline plans to operate nine freighters, with the tenth joining in early 2025.
This partnership with Amazon represents Hawaiian Airlines’ first venture into dedicated cargo operations. The airline is in the final stages of launching this new division, including hiring and training approximately 160 pilots for freighter operations. This venture will entail different work rules compared to A330 passenger aircraft and will base pilots on the mainland.
In April, Hawaiian Airlines completed the transition of A330 maintenance from Delta TechOps to its own personnel, a move aimed at exercising greater control over operations and cost savings. The introduction of A330 freighters is expected to further lower per-unit costs.
Looking ahead, Hawaiian Airlines anticipates receiving its first Boeing 787 passenger jets early next year. These larger aircraft will provide more space for cargo and are slated to replace some of the early model A330s in the airline’s fleet. With its eyes on growth and operational excellence, Hawaiian Airlines appears poised for a successful partnership with Amazon Air in this exciting new chapter of air logistics.
