Amazon’s Latest Purchase Aims to Speed up Your Deliveries
Amazon’s massive and highly complex shipping operation was boosted by the purchase of 11 Boeing 767-300 jets.
The move is noteworthy as the online shopping giant’s first purchase of aircraft, rather than leasing them to ship products across the country.
Taking advantage of a pandemic-stricken market with passenger airlines curtailing their services and ground aircraft, Amazon bought seven aircraft from Delta and four from Canadian airline WestJet
The WestJet aircraft will join Amazon’s existing fleet this year once the planes have been converted for cargo use, while the Delta jets will come into service at some point next year. Amazon expects 85 cargo planes to cross the US by the end of 2022
Commenting on Amazon’s first aircraft purchase, Sarah Rhoads, Vice President of Amazon Global Air, said, “Our goal is to continue to serve customers in the US as they expect Amazon to do, and buying your own aircraft is next Step towards that goal. “
Rhoads added, “With a mix of leased and owned aircraft in our growing fleet, we can better manage our operations, which in turn helps us keep pace with delivering on our customer promises.”
Amazon began leasing aircraft in 2015 to move items over longer distances in shorter periods of time, thereby optimizing shipping operations. The move was partly triggered by a disastrous 2013 Christmas season for Amazon, when large shipping companies were overwhelmed by an unexpectedly large number of packages, causing delays in delivery.
The e-commerce company apologized with a US $ 20 gift card sent to affected customers and soon found that it was “checking the delivery people’s performance.” While it still uses FedEx and UPS, Amazon has taken significant steps in the past few years to gain more control over its shipping operations.
In May 2019, for example, Amazon boss Jeff Bezos laid the foundation stone for a 3 million square meter cargo facility and a 250,000 square meter loading ramp at the Cincinnati / Northern Kentucky International Airport. Local media described it as the size of 31 Great American Ball Parks – the home field of the Cincinnati Reds. When the facility is completed later this year, it will accommodate up to 100 Amazon Air aircraft and employ around 2,000 people.