Amazon Leases Their Own Jets

Jet

As Amazon keeps growing, they look to lower their incremental costs. Their latest strategy is to lease their own jets to doing shipping in-house. How will this affect the big shippers like UPS and FedEx? Will they lower rates to compete, benefiting smaller merchants?

Move Over, FedEx – Here Comes Amazon

Amazon has been negotiating a lease for 20 Boeing 767 jets as it executes on plans to start its own air cargo business, according to recent reports. It launched a pilot of the service in Wilmington, Ohio, where Air Transport Services Group, or ATSG, has been managing airfreight on Amazon’s behalf, according to The Seattle Times. The activity in Wilmington caught the attention of Vice’s Motherboard, which learned that ATSG had moved into the Wilmington Air Park under contract with an unnamed…
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