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Threat of Amazon in the package delivery biz

Old 03-20-2018, 08:10 AM
  #101  
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from Bloomberg:
"Airbus Weighs New A330 Cargo Model, Spurred by Amazon"

https://www.bloomberg.com/news/artic...rred-by-amazon

Amazon plans an initial fleet of 40 used 767 freighters for its Prime Air fleet, and has discussed ordering airplanes with Boeing in the past. The $1.5 billion air hub the company is plotting to build near Cincinnati suggests it will eventually have a far larger operation.
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Old 03-20-2018, 10:17 AM
  #102  
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https://www.bloomberg.com/news/artic...rred-by-amazon

I heard they’re giving ATI pilots a 1% discount and a free prime pilot bag tag for the type rating of the A330 at AIRBUS training center in Miami.

#pilotpaymatters
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Old 05-11-2018, 02:42 PM
  #103  
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https://m.youtube.com/watch?v=bYt9I2Znrik

https://cargofacts.com/just-what-is-...-planes-video/
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Old 05-13-2018, 09:03 AM
  #104  
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Originally Posted by BlueSkies88 View Post
https://www.bloomberg.com/news/artic...rred-by-amazon

I heard they’re giving ATI pilots a 1% discount and a free prime pilot bag tag for the type rating of the A330 at AIRBUS training center in Miami.

#pilotpaymatters
#makepilotpaygreatagain
Amazon bag tag

FYI, the last one I saw had an old “hope and change” sticker on the kit bag

WE ALL know how that went down.
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Old 05-20-2018, 02:55 PM
  #105  
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I am employed by FedEx. Yes, I am long term worried about Amazon.



Many people think FedEx airplanes are filled with eCommerce packages. During peak, maybe. Day to day, no. When I go to the back and I see whats on the airplanes I see bulk items, palletized items, large shipments of items between businesses, and hazmat.



Unless Amazon chooses to get into this space with their business to business model, yes Amazon will become a threat to UPS and FDX. However, if they're going to remain in the eCommerce space, I don't see them competing much with UPS and FDX, rather trying to build out their own shipping system to lower their shipping costs as much as possible.


What I find interesting is that Amazon noted service failures on FDX and UPS as the reason why they started their own shipping service. Why does Amazon think they're not susceptible to the same service failures as FDX and UPS? When the weather gets bad, Amazon will have the same issues.


Also, FDX has installed electronic vision and HUDs in their aircraft whereas Amazon has not. So technically FDX airplanes have a better chance getting into airports with bad weather.



How all of this plays out remains to be seen. But yes, Amazon is a threat and if Smith is really not concerned, then FDXers have a big problem. But just as he said FedEx must be looking at drones and automated technology because of his commitment to share holders etc.etc., he is watching and looking at Amazon.
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Old 05-21-2018, 04:14 AM
  #106  
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Originally Posted by PurpleToolBox View Post
I am employed by FedEx. Yes, I am long term worried about Amazon.



Many people think FedEx airplanes are filled with eCommerce packages. During peak, maybe. Day to day, no. When I go to the back and I see whats on the airplanes I see bulk items, palletized items, large shipments of items between businesses, and hazmat.



Unless Amazon chooses to get into this space with their business to business model, yes Amazon will become a threat to UPS and FDX. However, if they're going to remain in the eCommerce space, I don't see them competing much with UPS and FDX, rather trying to build out their own shipping system to lower their shipping costs as much as possible.


What I find interesting is that Amazon noted service failures on FDX and UPS as the reason why they started their own shipping service. Why does Amazon think they're not susceptible to the same service failures as FDX and UPS? When the weather gets bad, Amazon will have the same issues.


Also, FDX has installed electronic vision and HUDs in their aircraft whereas Amazon has not. So technically FDX airplanes have a better chance getting into airports with bad weather.



How all of this plays out remains to be seen. But yes, Amazon is a threat and if Smith is really not concerned, then FDXers have a big problem. But just as he said FedEx must be looking at drones and automated technology because of his commitment to share holders etc.etc., he is watching and looking at Amazon.
The real issue why Amazon decided to reduce reliance on FedEx/UPS started not only because of weather.....but saturation at peak. When this happened at peak Fedex and UPS made a decision to only move Fedex and UPS freight and push Amazon freight off into the weeds. Weather may have played a part in that...but the decision to move only their branded freight was the catalyst for Amazon to start moving their own freight via aircraft and invest in 2 airlines. Also with domestic Amazon freight ...electronic vision and HUDs would be rarely used and would not help at all for landing on a snow/ice covered runway or severe weather over the airport.

Last edited by nitefr8dog; 05-21-2018 at 04:50 AM.
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Old 05-21-2018, 06:49 AM
  #107  
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I’ve read on here (one of the ATI/ABX/Amazon threads) that many Prime Air 767s are regularly flying with only 15-20k payload.
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Old 05-21-2018, 07:03 AM
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Originally Posted by BoilerUP View Post
I’ve read on here (one of the ATI/ABX/Amazon threads) that many Prime Air 767s are regularly flying with only 15-20k payload.
I think that could verywell be true.....the majority of the packages have bulk but not much weight. Also until the sort center in CVG is built Amazon is still using many other sources to move their boxes.
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Old 05-21-2018, 02:25 PM
  #109  
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They have always kept their cards very close to their chest. Outside of peak, and since its inception, I can count on maybe two appendages (digitally-equipped ones, that is!) the number of times the load called for a -300. During peak is another matter. But either way, much of the actual "load" is box-enclosed sailboat fuel.


The service was kicked off with immediate access to a bunch of -200s, and the Prime-painted -300s trickled on as they became/become available. Even though most of it can be done with -200s most of the year, the very presence of a still-growing fleet of painted -300s pretty much points to a plan for this to be around for a while, with room to grow. Will it eclipse brown or purple? Probably not any time soon, or at any sort of rate that would put either of them in jeopardy, beyond slower potential growth (absent Prime) versus the economy.
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Old 05-22-2018, 02:01 PM
  #110  
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Originally Posted by nitefr8dog View Post
The real issue why Amazon decided to reduce reliance on FedEx/UPS started not only because of weather.....but saturation at peak. When this happened at peak Fedex and UPS made a decision to only move Fedex and UPS freight and push Amazon freight off into the weeds. Weather may have played a part in that...but the decision to move only their branded freight was the catalyst for Amazon to start moving their own freight via aircraft and invest in 2 airlines. Also with domestic Amazon freight ...electronic vision and HUDs would be rarely used and would not help at all for landing on a snow/ice covered runway or severe weather over the airport.
The problem is Amazon wanted way more space than what FedEx could provide. Then the wanted X number of airplanes dedicated solely to Amazon peak. FedEx didn’t have a spare X of airplanes to dedicate to Amazon for only peak.

Then — and this is key — Amazon sold well above what they contracted for and the blamed FedEx and UPS for not being able to deliver. That’s a bunch of BS.

Even as of last year I saw Amazon commercials late on the 23rd guaranteeing delivery by Christmas. Impossible.

Amazon promised too much to too many people and then sold out FedEx and UPS. While both had some service problems, FedEx’s was very minor, Amazon three then under the bus.

The problem is you can’t staff an airline only for peak. When peak comes, there isn’t enough planes and crews available.

When I worked at previous company, CVG ran out of deicing fluid twice. It will be interesting to see who Amazon blames when CVG gets weathered out during the holidays.
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