50 SKY SHADES - World aviation news

Amazon will lease 20 Boeing 767s to get its long-rumored cargo service off the ground

Download: Printable PDF Date: 10 Mar 2016 05:27 (UTC) category:
Publisher:
Amazon will lease 20 Boeing 767s to get its long-rumored cargo service off the ground - Finance publisher
Dana Ermolenko
Aircraft: Airplanes
Source: Reuters

Amazon is about to lease 20 Boeing 767 aircraft, according to Reuters, confirming months of speculation that the online retail giant is building up an air-delivery service. The planes are being leased by a company called Air Transport Services Group Inc.

Rumors of Amazon's involvement with ATSG date to late last year, when Motherboard uncovered that the aviation lessor was shipping goods for a client codenamed "Aerosmith." Back then, ATSG leased just four 767s that went to cities near large Amazon distribution centers like Allentown, PA, and Oakland, CA.

While Amazon has spent the past few years publicly teasing plans for physical stores and drone delivery, it has also been shoring up more traditional delivery infrastructure. The company started to take control of its own deliveries as far back as early 2014, not long before it rolled out Amazon Fresh. It's also expanded the Prime Now one-hour delivery service to a number of major cities, including New York, San Francisco, Los Angeles, Austin, Chicago, and Miami.

All this activity ballooned Amazon's fulfillment costs to $1.8 billion in the fourth quarter of 2015, so it's no surprise that the company is looking for ways to reign that number in. As Motherboard reported in November, Amazon could generate up to $5 billion a year by building out its own freight services and logistics.

The company has also suffered through some troublesome holiday shipping delays, so less outsourcing could mean more control over those types of problems. But a recent Bloomberg report hinted at much bigger ambitions for Amazon: becoming a full-fledged contender to UPS and FedEx.





Recommended

Daher highlights expanding business aviation role of TBM and Kodiak at NBAA-BACE 2026

Daher Aircraft will present its TBM and Kodiak aircraft families at next week’s NBAA Business Aviation Convention & Exhibition (NBAA-BACE), showcasing how their combination of performance, e...

Bombardier marks 40 years of Smart Services programs at NBAA-BACE 2026 in Las Vegas

Bombardier marked the 40th anniversary of its industry-leading Smart Services cost-per-flight-hour programs, which today support more than 1,500 enrolled aircraft and account for over 11 mil...

Viasat delivers major U.S. capacity expansion for JetXP business aviation customers

Viasat has significantly expanded the capacity of its JetXP in-flight connectivity service across the United States, delivering up to five times more bandwidth for business aviation customers equipped...

Elevating private aviation experience - PAC Kitchen and Provo Air Center

In business aviation, exceptional service is defined by attention to detail, and few amenities reflect that more clearly than premium catering. At the intersection of hospitality and private aviation,...

Android Apps development in Riga, Latvia