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Amazon in talks to lease Boeing jets to launch air-cargo business
Previous reports have discussed Amazon testing its own air-transportation services in OH and purchasing Amazon-branded trailer trucks earlier this month.
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Currently, Amazon’s freight is shipped by UPS, FedEx and the U.S. Postal Service.
Amazon seems to focusing on improving shipment and delivery infrastructure.
According to sources, leasing 20 Boeing jets would be a significant expansion of an Amazon trial operation out of Wilmington, Ohio trial run, being operated by ATSG. A senior aircraft-leasing company executive familiar with Amazon’s plans said the company has approached several cargo-aircraft lessors to line up the planes.
“I believe they are serious about looking at this”. “They are not going to hang about”. This is turn would help Amazon to keep the cargo planes loaded, even after the massive spike in sales once the holiday sales season passes. The one-hour delivery service Prime Now grew from a test in a few Manhattan zip codes to a service in 16 cities around the country in less than a year with restaurant deliveries also being added. “That’s forcing Amazon’s hand, to some extent”, said Colin Sebastian, Internet analyst at investment firm Robert W. Baird. Amazon, Boeing, and Atlas Air declined to comment.
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“As an interim step, (Amazon) will probably have to sign up with somebody who already has 767s and can start the operation”. “Then they’ll have to move, probably from 2017 onward, into acquiring airplanes themselves”. 767 freighter jets to gain greater amount of control over its costs and delivery system. That one percentage point difference means approximately 300,000 packages a day, out of the 30 million it has been delivering each day in December.