Looks like Amazon wants to step up their air cargo ops.
http://www.seattletimes.com/business...argo-business/
Amazon.com is negotiating to lease 20 Boeing 767 jets for its own air delivery service, cargo industry executives have told The Seattle Times.
The online retail giant wants to build out its own cargo operations to avoid delays from carriers such as United Parcel Service, which have struggled to keep up with the rapid growth of e-commerce.
"Amazon is pretty fed up with the third-party carriers being a bottleneck to their growth," Robert W. Baird & Co. analyst Colin Sebastian said.
Leasing 20 jets would be a significant expansion of an Amazon trial operation out of Wilmington, Ohio, operated by ATSG on Amazon's behalf, sources said. A cargo industry source said Amazon expects to make a decision to go beyond the trial run and pull the trigger on a larger air cargo operation by the end of January.
He believes Amazon will eventually ship packages for other companies as well, putting it in direct competition with UPS, FedEx and others. Conceptually, other retailers could store goods in Amazon's warehouses, and then have Amazon manage the entire delivery operation. That would help Amazon keep the cargo planes loaded even after the holiday crush ends.
http://www.seattletimes.com/business...argo-business/
Amazon.com is negotiating to lease 20 Boeing 767 jets for its own air delivery service, cargo industry executives have told The Seattle Times.
The online retail giant wants to build out its own cargo operations to avoid delays from carriers such as United Parcel Service, which have struggled to keep up with the rapid growth of e-commerce.
"Amazon is pretty fed up with the third-party carriers being a bottleneck to their growth," Robert W. Baird & Co. analyst Colin Sebastian said.
Leasing 20 jets would be a significant expansion of an Amazon trial operation out of Wilmington, Ohio, operated by ATSG on Amazon's behalf, sources said. A cargo industry source said Amazon expects to make a decision to go beyond the trial run and pull the trigger on a larger air cargo operation by the end of January.
He believes Amazon will eventually ship packages for other companies as well, putting it in direct competition with UPS, FedEx and others. Conceptually, other retailers could store goods in Amazon's warehouses, and then have Amazon manage the entire delivery operation. That would help Amazon keep the cargo planes loaded even after the holiday crush ends.