Amazon is (very) quietly starting their own shipping company.
Amazon Fulfillment Services just signed an agreement with an Ohio aircraft leasing company to operate 20 Boeing freighters. According to Air Transport Services Group, Inc. (ATSG) of Wilmington, the deal had been in the works for months.
“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.
ATSG will lease at least 20 Boeing 767 freighter aircrafts to Amazon Fulfillment Services, which is an affiliate of Amazon. According to USA Today, the lease if for anywhere between five and seven years.
The Ohio group will fly the aircraft and be responsible for logistics and gate services.
This has been a rumor for months, and the move will aid Amazon in its quest to expand its services. The company likely hopes to build its own delivery system at some point.
"Amazon is tired of having its hands tied and relying on other carriers to move its massive amount of volume. As a result of this announcement, now Amazon is bringing more of its logistics in-house from supplier to fulfillment to delivery. Will we next see changes in how Amazon manages its final mile delivery?" said John Haber, CEO of Spend Management Experts, an Atlanta-based supply-chain management consulting firm.
“We’re excited to supplement our existing delivery network with a great new provider, ATSG, by adding 20 planes to ensure air cargo capacity to support one and two-day delivery for customers,” Dave Clark, Amazon senior vice president of worldwide operations and customer service, said in a statement.
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The agreement also clears the way for Amazon to buy more planes in the coming years.