Passenger air travel might have all but vanished during the pandemic but online sales and deliveries are booming, so Amazon is bolstering its air cargo network with its own aircraft. The retail-to-cloud-computing giant has purchased 11 Boeing 767-300 aircraft from Delta and WestJet, becoming the first aircraft the Amazon Air cargo business will own rather than lease. It bought four aircraft from WestJet in March that are being converted from passenger jets to cargo planes. They're expected to be operating this year, while seven more it bought from Delta will join Amazon's air cargo network in 2022. Amazon told Bloomberg it expects to have more than 85 planes in service by the end of 2022.
Amazon has revealed the latest weapon in its quest to make delivery for its Prime customers even quicker - a sleek new Boeing 767-300. The online retailing giant plans to unveil its first branded cargo plane, dubbed Amazon One, to the public at the Seattle Seafair Air Show on Friday. It is the first of 40 planes that will make up the company's fleet, aimed to remove the middlemen for long distance deliveries. The move will speed up the fulfillment of Amazon orders as the company ships an increasing number of packages worldwide. Amazon's senior vice president of worldwide operations, Dave Clark, explained aircraft like Amazon One allow the company to'continue to maintain our fast delivery speeds and lower our costs as our Prime base and our Prime member growth continue to soar.'
Amazon may dream of one day creating floating warehouses, but on Tuesday the ecommerce giant announced a slightly more practical plan for air travel. According to a report from the Wall Street Journal, Amazon is investing $1.5 billion to build an air cargo hub to expand its transportation capabilities. The massive expenditure will be located at Cincinnati/Northern Kentucky International Airport in Hebron, Ky. The hub, which will occupy about two million square feet, will reportedly create around 2,000 jobs--marking a small step toward the company's promise to create 100,000 new jobs in the United States by 2018. The decision to build an air hub of its own will lessen Amazon's reliance on traditional carriers like UPS and FedEx--both of which operate not far from Amazon's planned hub, with the largest UPS hub located in Louisville, Ky. and FedEx's in Memphis, Tenn.
Amazon on Wednesday announced it's leasing 12 Boeing 767-300 converted cargo aircraft, expanding its Amazon Air fleet to a total of 82 aircraft. The expansion of Amazon's logistics network comes as the ongoing COVID-19 pandemic compels consumers to do their shopping online. Commentary: Please join our sister sites in fundraising to help address racism. "Amazon Air is critical to ensuring fast delivery for our customers – both in the current environment we are facing, and beyond," Sarah Rhoads, VP of Amazon Global Air, said in a statement. "During a time when so many of our customers rely on us to get what they need without leaving their homes, expanding our dedicated air network ensures we have the capacity to deliver what our customers want: great selection, low prices and fast shipping speeds."
Amazon.com Inc. AMZN 0.17 % unveiled the first in a planned fleet of new cargo jets on Thursday, part of an effort by the e-commerce giant to expand its logistics operation. The Boeing BA 0.08 % 767-300, emblazoned with "Prime Air" on its fuselage, is to be operated by Atlas Air Worldwide Holdings Inc. AAWW -0.97 % It is one of 40 that Amazon has agreed to lease as it broadens its system for shipping and delivering goods quickly to supplement partners such as United Parcel Service Inc. UPS -0.19 % and FedEx Corp. FDX -0.17 % The plane is part of a deal announced in May to lease 20 Boeing planes from Atlas Air, following a similar deal in March to lease as many as 20 jets from Air Transport Services Group. The effort stems from a broad desire at Amazon to take greater control of its shipping and package delivery operations. In some cases, the firm is using its own trucks, drivers and a fleet of couriers for so-called last mile delivery, the final and most-expensive leg of an order's trip. Amazon's shipping costs have been rising more quickly than sales, and having its own cargo fleet could help stem the rise.