Amazon Leases 20 Planes, Starts Air Freight Service

Amazon Leases 20 Planes, Starts Air Freight Service

Posted by Whitney

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3/9/16 4:06 PM

Online retailer Amazon has big plans and much of it involves a very complex logistics operation. It's been rumored for some time but now plans are coming to fruition.  "Amazon is now officially going into the air freight business with the announcement that the Seattle online retailer has signed a five to seven year lease for 20 cargo planes.

As Amazon has grown, and especially as it has built out its lucrative Prime business, taking control of its logistics chain has been seen as key to cost cutting and on-time delivery.

These planes provide critical capacity expansion to support the growth of Prime in the U.S.. Planes provide an additional dedicated transportation method connecting Earth’s largest selection to customers from coast to coast. At our scale, supporting growth requires adding some of our own logistics capabilities," said spokeswoman Kelly Cheeseman.

Air Transport Services Group, Inc. (ATSG) of Wilmington, Ohio, announced Wednesday that it had signed an agreement to operate an air cargo network of 20Boeing 767 freighter aircraft for Amazon Fulfillment Services in the United States.

“Since last summer, we have been working closely with Amazon to demonstrate that a dedicated, fully customized air cargo network can be a strong supplement to existing transportation and distribution resources,” Joe Hete, president and CEO of ATSG said in a statement.

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Topics: Retail Industry