I think this will do several things
1. Will change the express market that has not changed much, Just grown in the last 20 years.
2. UPS/FedEx has largest shipping network but sells nothing. Amazon is the opposite. When they get their air and ground system up it will be bad for the two giants that don't have a platform to sell stuff (UPS FedEx).
3. They must morph into a Amazon type operation or die. FedEx has the talent, but UPS is the old slow dog that learns new tricks slowly and thats bad.
4. Amazon will spend whatever it takes to make this logistics operation work or at least get it started and wall street will support it.
5. The industry will change, how much, who changes and who dies is TBD.
6. If I was an young guy under 40 go to UAL/DAL/AA. Guys come to UPS and FedEx for the pay and pension. If the industry goes low cost it can not support such things.
7. Another possibility is that Amazon will buy and minority controlling share of UPS or FedEx (49%). I believe getting in bed with Amazon would be a great deal. They are the future of ecommerce and have a proven track record.
8. The old argument of "were will they get the pilots to fly the jets" does not hold water. People want to work for Amazon, even if its not Amazon. Can you imagine how many apps they would have if they started a airline that was truly company owned. People still believe you can get rich at a startup airline.