FRIDAY APR 19, 2024
×
Search AeroXplorer
Amazon Air to Sell Surplus Capacity Onboard its Jets Ahead of Predicted Market Slump

Amazon Air to Sell Surplus Capacity Onboard its Jets Ahead of Predicted Market Slump

BY ADAM SCHUPAK 01/10/2023 AGO 2 COMMENTS

Did you know that Amazon, one of the world's largest e-commerce companies, has an airline? The airline, Amazon Air (or Prime Air prior to 2017-18), has seen rapid growth since its establishment in 2015, but not rapid enough it seems for Amazon. In order to gain an even larger share of the global air freight market and counteract the recent slowdown in air freight demand, the airline has decided to once again innovate by deciding to sell surplus room onboard the companies' freight planes to other shipping and e-/commerce companies.

 

Photo: Edwin Sims | AeroXplorer


 

A Logical, Environmentally Friendly, and Space-Saving Decision

 

The decision to sell the surplus capacity onboard Amazon's aircraft is a logical decision that also bodes well for the reputation of both companies. Now more than ever, increased attention is being put on the efficiency and environmental impact of airplanes and aviation in general.

 

Photo: Cody Newton | AeroXplorer

 

According to Bloomberg, months before the new idea was announced, the airline "...has hired executives with experience in marketing cargo space for airliners..."

 

Globally, the air freight market is expected to shrink by approximately 25% in 2023 from around $200 billion to $150 billion. This means that the airline will see a slowing in its growth due to less demand. The business generated from Amazon Air's new strategy will help the airline continue in an upward trend despite the slowdown.

 



ADVERTISEMENT

 

Getting Some of Those Sweet, Sweet Fruits

 

The airline also has hopes to expand its market share in the air freight industry to not only include packages, but also the import of seasonal products and perishable goods (e.g. pineapples from Hawaii or salmon from Alaska). 

 

Rapid Network Growth

 

Amazon Air has grown its fleet and network of hubs and destinations so rapidly because of its rather unique business strategy regarding its aircraft. A typical cargo airline such as FedEx owns all of its planes while Amazon Air's rather large fleet of 97 planes is fully leased from other airlines. The airline has leasing agreements for various different aircraft from companies such as Silver Airways (3M), Atlas Air (5Y), Sun Country Airlines (SY), and most notably Air Transport International (8C), among others. Some flights operated under Amazon Air (or Prime Air) callsigns are sometimes also operated by these airlines but in Amazon Air's liveries.

 

Photo: Peter Cuthbert | AeroXplorer

 

Upon the airlines commencing operations in 2015, they were based out of Wilmington Air Park Airport (ILN) in Ohio. Since then, a new regional hub has been built at Fort Worth Alliance Airport (AFW) in Texas, and Amazon Air's most expensive project to date - their $1.5 billion Cincinnati hub - has recently launched. Internationally, however, Amazon Air's market share is still considerably small, with a recently established hub in Germany's Leipzig Halle Airport (LEJ/EDDP). 

 

Do you think that Amazon Air's rapid growth, coupled with its new policy, is predatory in nature? Do you think that the company will succeed in becoming one comparable in size to giants  UPS or FedEx? Let us know in the comments below!

Adam Schupak
Hey there! I'm Adam, a passionate avgeek absolutely obsessed with everything that flies. I'm a student glider pilot, but have the ultimate ambition of become a commercial airline pilot. Besides aviation, I'm also passionate about urban design, civil engineering, and trains.

Comments (2)

Mike Swig Did you realize you can sell your site for 40x monthly profit? That means if your business makes $10k in profit per month, you can realistically sell it for $400,000. I just helped an Amazon owner Brian get a FREE Business Valuation (https://bit.ly/free-biz-valuation) for $475,000 and he sold his business in under two months! If you want to find out how much your business is worth right now (in 60 seconds), then make sure to click here for a Limited TIME FREE Business Valuation---> https://bit.ly/free-biz-valuation **Note this is 100% secure, and no sensitive details are required. How to use your Free Business Valuation: 1. Click this link here: https://bit.ly/free-biz-valuation 2. Select “Amazon” from the options 3. Take 1-2 minutes to add your details 4. Receive your FREE valuation in minutes! All the best, Mike Swigunski Ps…In case you want to learn more about selling your online business, you can read this article I wrote for Forbes: https://www.forbes.com/sites/mikeswigunski/2021/06/14/selling-a-website-or-online-business-in-2021/
393d ago • Reply
Ramonfedge https://www.moz222.org/
463d ago • Reply

Add Your Comment

SHARE

TAGS

NEWS ups fedex amazon amazonair cincinnati wilmington cargo freight aircargo

RECENTLY PUBLISHED

Delta is Giving Away Free Flights to the Paris Olympics. Here's How to Enter One airline is holding a sweepstakes to win a complimentary trip to the 2024 Paris Olympics. Want to enter? Here's how. NEWS READ MORE »
Is the Airbus A380 the World's Safest Plane? In the nearly two decades of A380 operations, the superjumbo has never suffered a fatal accident. Why is this and does that make it the world's safest aircraft? INFORMATIONAL READ MORE »
3D Printed Aircraft Might Fly Sooner Than You Think The aviation industry constantly searches for new ways to innovate their manufacturing processes. With the rise of 3D printing, how can 3d printing be integrated into aircraft. Can we see fully 3D printed aircraft flying anytime soon? INFORMATIONAL READ MORE »


SHOP

$2999
NEW!AeroXplorer Aviation Sweater Use code AVGEEK for 10% off! BUY NOW

FOLLOW US ONLINE