Snapshot: Boeing Aircraft and Amazon Air
The Amazon Prime service has changed the way consumers around the world shop. With the capacity to offer product delivery at wicked fast turnarounds, it’s not surprising that Amazon has invested in an aircraft freighter fleet of its own. In just three years, Amazon Prime Air, now coined Amazon Air, has expanded to a fleet of 40 leased aircraft in operation— with plans to grow their fleet to a total of 50 in the next two years.
Currently, Amazon is leasing its freighters through Air Transportation Services Group (ATSG INC.) and Atlas Air. Of the 40 aircraft in operation under Amazon Air, 32 of them are Boeing 767 cargo aircraft
. Amazon has officially announced that they plan to add 10 additional Boeing 767- 300 cargo jets to their fleet over the next two years.
Amazon previously employed the services of FedEx and UPS to facilitate its deliveries. After a huge delivery failure in 2013 where thousands of Amazon Prime packages did not reach customers on a promised Christmas deadline, the company decided to invest heavily in the development of its own air fleet to speed up the delivery process and provide more control over logistics. In using its own private aircraft, Amazon has the potential to save 2 billion USD per year on shipping expenses. With demand increasing for more products at faster delivery rates, Amazon hopes that its air services will streamline the distribution of goods between hubs.
In 2017, the company announced a $1.5 billion investment in a cargo hub at the Cincinnati/Northern Kentucky International Airport. The purchase integrates 210 acres of land for the project, which will have the capacity to house 100 freighter jets by its completion in 2021. Amazon already operates cargo hubs at Chicago Rockford International Airport and Fort Worth Alliance Airport. With Amazon’s expansion and Boeing's dominant presence as an aerospace company, there is certainly potential for a sustained business relationship between the two American industry giants.
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Posted on March 26, 2019