Is Amazon creating an air freight network?

Though the company never comments publicly on early phase negotiations, it is widely rumoured that Amazon is looking to lease 20, Boeing 767 air freighter jets. This could really harm the air freight market in the US if true.

Apex Insight reported in November that there is a pilot project supposedly taking place, code named Aerosmith, where Amazon has been air freighting its parcels across the US and southern Canada. Now a variety of sources are saying that it has put the feelers out to get hold of 20 new Boeing 767 air freight jets.

The aircraft, which could cost $600,000 a month, are supposedly being brought into service to tackle the issues caused by delays in UPS and FedEx systems during peak periods. Though Amazon is one of the companies’ largest clients, they have other clients that all compete for the same space in their aircraft around the world especially during holiday seasons.

Amazon is supposedly recruiting for a management level logistics executive as well. If this is true then there is every reason to suppose that the company is trying to bring its major logistics operations in house, certainly in the US and Canada.

Additionally the company has bought a fleet of HGVs in the US as well. This would also suggest that not only in last mile but other areas of the Amazon freight and parcels network, the company is quietly bringing its delivery business in house.

Amazon relies heavily on external delivery and logistics companies but shifting away from them and effectively going into competition with them would save the company money while hurting their business. Could we see Amazon as much of a threat to delivery companies as it has been to rival e-commerce companies? That is an issue to watch closely in the coming months.

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