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Amazon thinking big, considers implementing air cargo fleet delivery strategy

Monday 21 December 2015 09:33 CET | News

Amazon has been involved in discussions with air-cargo companies to lease aeroplanes and establish its own freight operation, with the goal of reducing its reliance on traditional carriers.

The online retailer has said it is seeking as many as 25 aircraft from companies including Atlas Air Worldwide and Air Transport Services, the australian.com.au reports, citing a number of sources. Amazon could begin building out the service early in 2016.

Amazon has already teamed up with Air Transport Services, as part of a test using cargo aircraft. Air Transport Services Group did not immediately respond to a request for comment. Representatives for Amazon and Atlas declined to comment.

The effort stems from Amazons willingness to take greater control of its shipping and package delivery operations. In some cases, the company is using its own trucks, drivers and a fleet of couriers for the so-called last mile delivery, the final and most expensive leg of an order’s trip.

Amazon also thinks of taking packages to the air through a network of drones that can make deliveries in as little as 30 minutes. As well as helping to restrain costs, developing its own air-cargo fleet and ground transportation could allow Amazon to avoid delays caused by its partners, including the US Postal Service, United Parcel Service and FedEx.

Amazon has told the air-cargo firms, which typically provide flying crews and maintenance services, that it hopes to phase the planes into operation by 2019.


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Keywords: Amazon, retailer, marketplace, ecommerce, shipping, logistics, parcel, air, cargo fleet, delivery strategy
Categories: Payments & Commerce
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Countries: World
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