Amazon to set up own air freight unit

Online retail giant Amazon is in talks with Boeing (BOE, Chicago O'Hare) over the proposed acquisition of "at least" twenty freighter aircraft, Cargo Facts has reported.

Following weeks of speculation in the cargo community, informed sources told the industry publication that Amazon is indeed pushing ahead with plans to set up its own air freight operation specializing in overnight deliveries throughout the United States. As such, talks with Boeing reportedly focus on the B767-300(F) with deliveries to be spanned over three years.

In preparation for the logistics unit launch, Amazon has partnered fellow US firm and parent to ABX Air (GB, Wilmington, OH), Air Transport Services Group Inc, in trialling freighter operations. Thus far, Amazon has set up bases around the United States including Seattle Boeing Field and Wilmington, OH. At the former, Amazon has chartered a B737 freighter from Northern Air Cargo (NC, Anchorage Ted Stevens) for use in serving Seattle, San Bernardino (close to a large Amazon fulfillment center), and the small city of Boise in Western Idaho.

The multi-billion dollar firm's move into the logistics market is expected to have serious repercussions on the global air freight market given that the majority of its parcels are shipped using third party operators such United Parcel Service, FedEx, and the United States Postal Service.