Amazon Scoops Up 11 Planes For Amazon Air
As Amazon continues to see a surge in orders amid the pandemic, the company is continuing to build out its robust logistics network.
The e-commerce giant announced yesterday that it made its first ever purchase of Boeing 767-300 aircraft as it purchased 11 aircraft from Delta and WestJet. The four aircraft purchased from Westjet are currently undergoing passenger-to-cargo conversion and will join Amazon Air's network in 2021, while the seven aircraft purchased from Delta will join Amazon Air's network in 2022.
While leasing aircraft up to this point, the purchase marks the first time Amazon purchased its own aircraft outright. The terms of the deal were not disclosed but Amazon likely got a bargain as plane values have plummeted amid the pandemic. Amazon will continue to rely on third-party carriers Atlas Air Worldwide Holdings and Air Transport Services Group to operate the planes.
"Our goal is to continue delivering for customers across the U.S. in the way that they expect from Amazon, and purchasing our own aircraft is a natural next step toward that goal," Amazon Vice President of Amazon Global Air Sarah Rhoads said. "Having a mix of both leased and owned aircraft in our growing fleet allows us to better manage our operations, which, in turn, helps us to keep pace with meeting our customer promises."
Since launching Amazon Air in 2016, Amazon has invested hundreds of millions of dollars and created thousands of jobs across the U.S, according to the company. Amazon's investments in Amazon Air also include a 6 million gallon purchase of sustainable aviation fuel as well as electric ground service equipment and solar rooftop panels at some of its facilities.
Amazon says Amazon Air will have more than 85 planes in its fleet, both leased and owned, by the end of 2022.
With airlines continuing to look for ways to raise money amid the pandemic, Amazon is likely to continue scooping up airplanes at discounted prices as it continues to expand Amazon Air's fleet.
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