This guy gets it. And IF (big IF) that ever happens... That new airline would obviously have to negotiate market +1 rates for WB pilots flying their own product around the world. FedEx and UPS would obviously still be there. But I definitely can see Amazon moving their own product around and their next big step being their own world wide network. Romam uno die non fuisse conditam.
Originally Posted by
JonnyKnoxville
I do not think this conversation is an Amazon vs. FedEx/UPS.
Please don't misread the conversation as gloating or excitement about Amazon as I would guess almost every single pilot affected by this Amazon deal (including myself) would love nothing more than to work for FedEx/UPS. One would be hardpressed to find any cargo pilot in the industry that doesn't envy those working for FedEx or UPS.
The point most are trying to make is that Amazon is going to make a significant attempt to compete with FedEx/UPS and they have deeper pockets than any competition in the logistics business. That is an indisputable fact. They also have a strong track record of ruthlessly achieving their business goals.
Of course, both FedEx and UPS are established companies with years of experience and they enjoy strong relationships with key customers. This fact will be a significant challenge to Amazon but over time, with enough money invested, this too could be overcome.
With all that said, one would be crazy to think that Amazon can not move into compete against FedEx and UPS. They have such deep pockets to where they can build and acquire a network over time. This move is bold and challenging but to write off the challenge would be a mistake. Just by acquiring ATSG and AAWW, which they already have a deal to aquire portions of each of those companies, Amazon will have an established fleet of 175 mostly widebody aircraft. Sure, it is not the size of the FedEx or UPS fleet, but Amazon is just getting started...and I would say, that would be a rather strong start.
With ATSG and AAWW, they immediately gain a strong market share far greater than just CVG. Atlas carriers more air freight in South America than anyone else. When flying throughout Asia, I see as many Atlas/Polar/DHL planes sitting at airports as I do for FedEx or UPS. Atlas also occupies the former Northwest Freight Hub in ANC. ATSG is also a very strong company that has a lot to offer, however, I do not work there and no much less about their network, but I do see them at airports all over.
Now, maybe, throw in DHL...that's right, let's wrap our head around Amazon buying DHL. It is possible. Amazon's CVG hub plans have them building their facility right up against the DHL facility. There is no doubt at this point that the two companies are already working closely together. They have deep enough pockets to aquire DHL and this possibility is not as far fetched as it may seem. If Amazon made this move, they would gain the largest worldwide logistics network rather quickly.
This could all be done in a matter of a few years and that just might be the start of Amazon entering the logistics business.