What is Amazon Air ?
Amazon Air, formerly known as Amazon Prime Air, is a cargo airline brand name for Amazon’s freight delivery service based in Hebron, Kentucky, near Cincinnati, Ohio. Amazon operates the delivery service using its own branded aircraft operated by Air Transport International, ABX Air, and Atlas Air. Its primary hub is located at the Cincinnati/Northern Kentucky International Airport (CVG).
UPS , FebEx shares falls into bear market as Morgan Stanley sees rising cometition from ‘Amazon Air’ . Here are some of the stats & reasons ,
Current state of Amazon delivery services ,
- As of now USPS (U.S Postal Service) handles 62% of Amazon packages , UPS 21% and FedEx 8% also other local carriers account for 9% of shipments.
- In 2021 , plan to build a $1.5 billion hub at the Cincinnati/Northern Kentucky International airport.
- Major presence at Fort Worth Alliance Airport and Chicago Rockford International Airport.
- By 2025 , Amazon will 67 planes dedicated to shipments / deliveries.
How this could benefit Amazon ?
- It will save $2 to $4 per package , comes of $2 billion annually , that will really beneficairy for Amazon.