- In January, Amazon bought 11 used Boeing jets from Westjet and Delta.
- Analysts have said that once the 11 jets are in service, the company will have a fleet of more than 285 planes.
- Coronavirus placed a lot of strain on delivery network across the world despite this Amazon has made profits during this period.
Amazon Air is said to be making an average of 140 flights a day a significant growth. According to a report from the DePaul University Chaddick Institte for Metropolitan Development, the flights are expected to move to 160 and above by June this year since new airplanes are to be added to the fleet.
A research has revealed that Amazon’s aircraft fleet has doubled and it is said to be laying groundwork for its rivals.
The company has over the years leased most of its cargo aircrafts through Atlas Air Worldwide Holdings and Air Transport Services Group. However in January, Amazon bought 11 used Boeing jets from Westjet and Delta. Analysts have said that once the 11 jets are in service, the company will have a fleet of more than 285 planes.
They added that Amazon’s growth trajectory could lead to a clash with the major shippers. The analysts predict that the company could leverage its end-to-end logistic operations to offer delivery services to other outer parties in the course of the year. The researchers from DePaul have differed with this projection saying that it might take a bit longer. They argued that the company should use this year to test its services before opening its logistic services to third parties.
According to reports, the company has stated bringing air cargo operations to in-house level. It is alleged that in the last few months Amazon has advertised jobs for maintenance managers and the managers who will oversee air ground operators on contracts. This is a clear indication of a change in its operations because a leasing option will never require internal staffs that are specialized in heavy maintenance.
Another step into operating as an airline is the company’s handling ground services like loading and unloading packages using their own staff. Experts say that this will give the company better control of costs and delivery speeds. They add that the company’s complicated supply chain has often been subjected to risks due to being dependent on a few contractors.
The company’s air cargo fleet plays a major part of the company’s strategy to meet its increasingly ambitious daily delivery targets. Amazon allegedly began testing its air cargo operations in Wilmington, Ohio, in 2015 under a project dubbed the “Aerosmith”. This move caused Amazon Air to grown rapidly as well as the current coronavirus pandemic.is
Amazon is already connected to most US population though flights from Kentucky and Ohio airports where its hubs are located. The company also offers a next-day delivery services to third parties who don’t sell in its platform. It had operated a similar service in the US previously but was forced to halt in April due to the global pandemic that has continued to be disastrous.
Coronavirus placed a lot of strain on delivery network across the world despite this Amazon has made profits during this period. This is because most people opted to buy goods online so as to avoid mingling with others.