FTFF

Ever notice that massive series of buildings across the street from worldport when you leave from the main gate or the training center? Ford Assembly plant in case you missed it. Ever wonder why that's there. Strange coincidence, next to UPS's main air hub? Parts, pre-fabricated components, materials, etc., all facilitated with just in time inventory served by.....a trucking company using 90s technology and yada-yada-yada. That's a multi million dollar relationship built on years of trust and personal relationships. It will be next to impossible for Bezos to steal that business but as I said twice now, if he is going to try, it will be a long, complicated, and expensive sales cycle. And that's just one example of thousands between FX and UPS.

I'm not dismissive of what you are saying, I'm arguing it's way over-hyped.

goinaround

Well, isn't Bezos effectively building a multi million dollar relationship with......himself? I don't see that he's trying to compete with FDX or UPS. But honestly, what do I know...

WTFover

For years Amazon was UNprofitable yet grew wildly, how is that possible? Because they REINVEST profit into grow and expansion!

Spike from flyi

They used to call it, whistling past the graveyard.

BoilerUP

The Centennial hub and SCS facility on Outer Loop, on the approach to the 35s, serve as a "force multiplier" of sorts for Worldport.

Take their combined size with Worldport and compare with the proposed Amazon CVG plan.

WhenPigsFLy

OK, so who here would say no to a job at UPS because of this. Really, you would pass on UPS for what might happen to the business model in the future. If that the case you should never take a job anyplace.

goinaround

Heeeeeeell no. I think most of the younger folks flying these routes would like very much to move on to brown or purple.

J Dawg

That analogy is not exclusive to UPS. For an apples to apples comparison, if we are going to include off airport warehousing and distribution facilities as some sort of "force multiplier" have a look at the number of Amazon Fulfillment Centers within an hour drive of CVG. Which incidentally would include their facilities on Louisville's outer loop.

Besides, its not as if Cincinnati doesn't already have a major logistics industry, and all that goes with it, due to DHL.

FTFF

Ok,

Amazon is planning to have CVG. Cute. Ups has SDF. And ONT. And DFW. And Chicago (RFD). And PHL. And CGN. And ANC. And a seperate list of smaller air hubs. FX has MEM. And LAX. And ANC... need I go on. Also, Amazons fulfillment centers in CVG and elsewhere are for on-line retail. FX's and UPS's are SSC & B2B based. Apples and cheeseburgers. I don't think you really have a strong grasp of exactly what business FX and UPS are actually in. Package delivery from grandma and / or Amazon is just one slice of the pie. And all of this talk completely dismisses just how ruthless FX and UPS are towards competition.

Whistling past a grave yard? Let me offer a platitude: Lipstick on a pig.

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.