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 is set to open a $1.49 billion cargo air hub to take on FedEx and UPS. The e-commerce giant has secured 900 acres of land in Kentucky that will one day be home to 40 Amazon Prime Air planes – 16 of which are currently in service. The hub will let Amazon handle more in-house shipping, allowing them to deliver packages faster and cut costs. Amazon is set to open a $1.49 billion cargo air hub to take on FedEx and UPS. The e-commerce giant has secured 900 acres of land in Kentucky that will one day house 40 Amazon Prime Air planes – 16 of which are currently in service.
A worker prepares packages for delivery at an Amazon warehouse in Brieselang, Germany. CINCINNATI -- Online retail giant Amazon has kicked off plans for a worldwide cargo hub at Cincinnati/Northern Kentucky International Airport, the largest investment ever there. Seattle-based Amazon has committed to invest $1.49 billion and bring 2,700 new jobs. The deal would top Delta Air Lines' 1993 million hub expansion at the airport if Amazon follows through on its commitment. "This is a once-in-a-lifetime deal," airport CEO Candace McGraw said.
SAN FRANCISCO – After what was by all accounts a stellar fourth quarter, Wall Street is expecting good things from Amazon when it announces earnings on Thursday after the bell. Amazon will continue to do well because of its laser focus on the customer as consumers increasingly turn to e-commerce, said Jason Moser, an analyst with the Motley Fool. "The market is right to reward Amazon for its investments today because it's investing in and growing this new standard. Not only is Amazon skating to where the puck is going but in many cases, it seems like it's the only one on the ice. On Thursday, analysts polled by S&P Global Market Intelligence expect to see sales of $44.69 billion and a profit of $1.43 per share.
Amazon.com Inc. said Tuesday it plans to build its first air cargo hub to accommodate its growing fleet of planes, signaling the company is ramping up its expansion into transporting, sorting and delivering its own packages. The Seattle-based retailer said it expects the new air hub, located at Cincinnati/Northern Kentucky Airport in Hebron, Ky., to create more than 2,000 jobs. The move will lessen its dependence on traditional...