Quote:
Originally Posted by Python1287
How does everyone feel about Amazon’s new purchase? Starting to own planes outright. Only a dozen, but every long journey begins with a first step. And they certainly have no issues with funding a long journey.
https://www.businessinsider.com/amaz...ng-767s-2021-1
Amazon is going to continue to use the 2000's legacy/regional airline model of a "portfolio of carriers" that they can whipsaw against each other. Amazon owning the planes only makes it that much more viable, because they can really pressure the competing carriers to cut costs, or they take the planes away and give them to someone else. They would be stupid to start an in house carrier, on their own certificate, and take on all that overhead.
Amazon would have to have a 500 aircraft fleet to carry all of their own stuff, plus have room to carry for others. AWS is successful because it doesn't take a huge investment in infrastructure like running an airline does. I wouldn't be surprised to see them spin AWS off at some point either. Like someone said above, Amazon has reached the top of their growth curve. Everyone who is going to use amazon already does. Amazon already has their money in Prime fees, and needs to move the boxes as cheaply as possible. They don't care about quality like FDX and UPS do, if there's a problem, they just refund your money. It's pennies on the sidewalk to them. FDX and UPS will always have the niche of carrying for everyone else who cares about quality. Let amazon be amazon they're no threat to UPS and FDX.