Amazon announces lease contracts for 20 cargo aircraft dedicated to its own company and starts operation in the field of goods distribution

ByBoeing

Amazon is carrying a huge amount of cargo every day, but it seems to take a new step to cut costs and speed up. Amazon has signed a contract to lease 20 Boeing aircraft '767 aircraft' aircraft and found out that they will start cargo transport by their company.

Amazon Is Leasing 20 Boeing Planes - Fortune
http://fortune.com/2016/03/09/amazon-boeing-jets/

Amazon to start air delivery network with leasing deal | Reuters
http://www.reuters.com/article/us-air-transport-sr-amazon-com-idUSKCN0WB1LA

Amazon announced the lease of 20 Boeing 767 aircraft on March 9, 2016 local time. Although details are not clarified, the airframe to be used seems to be a model that changed the 767 aircraft to a cargo type, and the actual operation is the aircraft leasing company'sAir Transport Services Group(ATSG) that the contents are done.

Amazon has a network all over the world and carries a huge amount of freight shipping only in the United States, but UPS and FedEx, and US postal service (United States Postal ServiceIt is said that there is a present condition that it depends greatly on companies such as). Even in 2015 alone, there is a huge transportation cost of 11.5 billion dollars (about 1.3 trillion yen) annually,Sales of $ 100 billion in fiscal 2015It accounts for more than 10% of Amazon.com's sales exceeded (about 11.3 trillion yen).

It seems that Amazon is going to embark on entry of air transport by the company with the aim of breaking such a situation. You can understand the background by seeing the following movies published by Fortune.


It is believed that this movement of Amazon influences existing transport companies to a certain extent. John Burns, an analyst at the RBC Capital Market commented, "This Amazon policy will have an impact on the transportation and transport volume of FedEx and UPS, which will be a gradual negative factor."

UPS has 240 aircraft and FedEx owns and operates 370 aircrafts, but Amazon is in charge of FedEx 's Integrated Marketing and Communications division on launching 20 aircraft, Patrick Fitz Gerald said, "We are working closely with Amazon, in which we feel that we feel the company has a need for complementary air transport for inventory management I was grasping it. "While asserting that Amazon is an important customer, this presentation is expected to be assumed.

ByBoeing

The aircraft's lease term is five to seven years and Amazon has the right to purchase up to 19.9% ​​of ATSG's total shares over the next five years. UPS and FedEx stock prices fell by 1.5%, and share price of one ATSG rose by 27% as a result of this announcement. In addition, we plan to start our own air transportation by Amazon leasing machine from April 1, 2016.