Amazon announced that it recently purchased 11 Boeing 767-300 planes, which will bring its total air fleet to 85 planes which will distribute packages in the United States and other markets.
Amazon initially launched its air fleet in 2016 with a total of 11 planes and the company expects to have its 85 planes operational by the end of 2022. Seven of the 11 new aircraft were used planes that were purchased from Delta, and another four were purchased from WestJet. The four WestJet planes will be operational by the end of this year, while the Delta planes will not be flying for Amazon until 2022.
Amazon’s recent acquisition of planes marks the first time the e-commerce giant purchased aircraft in favour of leasing agreements.
E-Commerce Air Fleet Expansions
Amazon Will Expand Its Air Capabilities to Have 85 Planes by 2022
Trend Themes
1. E-commerce Air Fleet Expansion - The use of airplanes in distributing packages by e-commerce companies such as Amazon marks a trend towards shorter delivery times and more efficient logistical operations.
2. Aircraft Purchasing Vs. Leasing - The decision of Amazon to buy its own aircraft instead of leasing shows a trend towards vertical integration in e-commerce and logistics to gain more control over its operations and profitability.
3. Air-based Logistics Innovations - The expansion of Amazon's air fleet highlights the trend towards utilizing aircraft as a means of streamlining the logistics process, which presents opportunities for further innovation in areas such as drone technology and air traffic management systems.
Industry Implications
1. E-commerce - Expanding air capabilities by purchasing aircraft instead of leasing underscores an opportunity for e-commerce companies to innovate their logistical operations and customer service.
2. Aerospace - The growth of e-commerce air fleets presents an opportunity for aerospace companies to provide new equipment and services that are better suited to the needs of e-commerce companies, like Amazon.
3. Logistics - The use of airplanes to transport packages represents an opportunity for logistics companies to find innovative ways to optimize the logistics process to meet the increasing demand from e-commerce companies.