May 25, 2022

Amazon expands its air delivery fleet after buying 11 new planes

Amazon.co.ukit is (NASDAQ:AMZN) air cargo ambitions take a new trajectory after the e-commerce giant announced it was buying, not leasing, 11 used planes Boeing aircraft Delta Airlines and WestJet airlines.

The purchase marks the first time that Amazon has leased no aircraft for its Prime fleet. It expects to have 85 planes in service by the end of next year.

Image source: Amazon.com.

On a wing and a prayer

Amazon leases most of its cargo planes through Air Transport Services Groupwhich powers the 767 fleet, and Atlas Air Worldwide Holdingswhich supplies 737s and 767s. Amazon has taken a stake in both companies.

She also leased 15,737 through General ElectricGE Capital Aviation Services, but took another new direction in September that hinted at future purchases when it directly registered one of its aircraft under its own name. This aircraft also belonged to WestJet.

As part of the new acquisition, Amazon will get Boeing 767-300s. Sarah Rhoads, vice president of Amazon Global Air, said in a statement, “Our goal is to continue to deliver to customers across the United States in the way they expect from Amazon, and the purchase of owning aircraft is a natural next step towards that goal.Having a mix of leased and owned aircraft in our growing fleet allows us to better manage our operations, helping us keep pace in delivering on our customer promises. »

Amazon has become a major threat to fedex and UPS. A recent study suggested the e-commerce leader could become a major aircraft carrier with up to 200 planes in the next seven to eight years, by which time it will be close to the size of UPS.

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