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Originally Posted by No Land 3
The whipsaw continues
The Morgan Stanley piece is actually embarrassing. For example, they state that things are really going to get going when all 40 aircraft are delivered. 🙄🙄 Everything they say, at least everything that was reported on CNBC, appears to be a wild-ass guess and is probably wrong, because it appears to me, at least, that several of their underlying assumptions are incorrect. Which is weird, because so much of the stuff is in the public domain, but analysts and media types seem to have no actual interest in, or aptitude at, ferreting it out. The basic premise of the article, which is that Amazon Air is going to take some amount of low-margin air business from FedEx and UPS, is basically a truism, so it's a silly read as far as I can see. The premium business for those two carriers, which is overnight delivery, is entirely unaffected by Amazon Air at the moment, and is likely to be so for a very long time if not forever. The capital investment necessary to do reliable overnight air is huge and probably not worth it. Right now, Amazon Air plugs into the existing Amazon organic ground delivery Network and or the USPS. These low cost last-mile options work fine for second day, and even overnight where the origin Distribution Center is very local. However, they would be well-challenged to get me my package next-day if it's coming off of a plane that left ONT at 9 p.m. or 10 p.m. for ABE or BWI, much less if it had to be sorted at a hub. They operational quality necessary to accomplish that just costs massive money and would seem to defeat the purpose of getting in the business in the first place.