Originally Posted by
WhenPigsFLy
I think the whipsaw comment is going to be the future for Amazon carriers. They need to keep the costs low for free or almost free shipping. $99 unlimited shipping is the ULCC of shipping.
All interesting thoughts and definitely going to be fun to watch. I didn't want to hijack this thread but when I read where some of the talk was heading, I just wanted to throw one more idea out there.
So far a lot of people, including myself, have said that they think Amazon will follow in DHL's footsteps by having multiple carriers fly for them. By doing such they can whipsaw and keep costs down, is what keeps coming up.
I was just recently thinking of this more and started to wonder, how does not owning the airline keep costs down? These companies, ATSG and Atlas do not lose money. They make money off of DHL and Amazon. A good amount as a matter of fact. Seems to me that by contracting out the work, it's more likely that Amazon is leaving some money on the table that could be in their pocket.
If free shipping to the Amazon customer is the ultimate goal, I'm starting to think that they would have to own and operate their own iron. Who knows... Time will tell.
Back to the UPS topic. Carry on.��