AVSIG: Amazon Going In the Air-Cargo Business? wwswsigarch.jpg (7236 bytes)

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Bill Bridges - 9S1
Top Gun


Reged: 05/17/04
Posts: 6008
Loc: 9S1
Amazon Going In the Air-Cargo Business?
      #419454 - 12/18/15 10:32 AM

It's is being reported that Amazon is looking at getting in the air-cargo business. This will be interesting to watch. :-))

the other bill

Edited by Bill Bridges - T47 (12/18/15 10:32 AM)


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Ward Miller POU-NY
Top Gun


Reged: 05/05/04
Posts: 10508
Loc: New York
Amazon Going In the Air-Cargo Business? [Re: Bill Bridges - 9S1]
      #419455 - 12/18/15 11:33 AM

>> It's is being reported that Amazon . . . is looking at getting in the
air-cargo business. <<

And it seems like just yesterday it was reported Amazon was considering
Chapter 11. My, how time (and packages) flies.


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Randy Sohn
Gradn Exlated Ordre of teh Fyling Fingres


Reged: 08/31/01
Posts: 23187
Loc: Savage, MN - U.S.A.
Re: Amazon Going In the Air-Cargo Business? [Re: Ward Miller POU-NY]
      #419463 - 12/18/15 06:32 PM

Quote:

considering
Chapter 11




Ward, you recall that old saw? About "how to make a million in the airline business?" "Easy, start with two million".

best, randy


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Russell Holton
AVSIG Member


Reged: 07/07/05
Posts: 14136
Re: Amazon Going In the Air-Cargo Business? [Re: Randy Sohn]
      #419464 - 12/18/15 06:37 PM

Quote:

Ward, you recall that old saw? About "how to make a million in the airline business?"



Does that apply to air cargo, too? Thinking over some history, that side seems to do a lot better.


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Bruce Gorrell [EQY]
Top Gun


Reged: 04/29/04
Posts: 7864
Loc: Charlotte, NC
Re: Amazon Going In the Air-Cargo Business? [Re: Russell Holton]
      #419467 - 12/18/15 08:23 PM

UPS and FedEx are the two winners out of the hundreds of losers.

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Ward Miller POU-NY
Top Gun


Reged: 05/05/04
Posts: 10508
Loc: New York
Amazon Going In the Air-Cargo Business? [Re: Russell Holton]
      #419470 - 12/18/15 09:13 PM

>> Think over some history . . . <<

Yeah, I remember: What? You mean every package must first go by air to
Memphis and then by air to its destination? Even stuff from SFO going to
LAX? Ya gotta be nuts! It will NEVER work!


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sreyoB yrraL
AVSIG Member


Reged: 05/16/04
Posts: 9442
Re: Amazon Going In the Air-Cargo Business? [Re: Bill Bridges - 9S1]
      #419471 - 12/18/15 09:24 PM

That's been flying for a couple of months now. ABX Air and Air Transport Int'l, both ATSG airlines that I used to fly for, are doing the flying using Airborne Express' old airport in Wilmington, OH (KILN). It's all hush-hush. Goes by the code name "Aerosmith" but everybody seems to know that it is for Amazon.

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Russell Holton
AVSIG Member


Reged: 07/07/05
Posts: 14136
Re: Amazon Going In the Air-Cargo Business? [Re: Bruce Gorrell [EQY]]
      #419472 - 12/18/15 09:27 PM

Quote:

UPS and FedEx are the two winners out of the hundreds of losers.




When Aloha Airlines went bankrupt, Aloha Air Cargo survived. (Which created a seniority scramble since out of work senior pilots wanted to keep flying on cargo.)

And I think any number of places got their start carrying some kind of cargo.

Perhaps the key is that cargo doesn't go head-to-head with competitors on a flight-by-flight basis like passenger service does. Flights are added as the capacity demands.


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Richard Duxbury (Dux)
Top Gun


Reged: 05/15/04
Posts: 5468
Loc: Minneapolis/Tucson
Re: Amazon Going In the Air-Cargo Business? [Re: Russell Holton]
      #419495 - 12/19/15 05:05 PM

Well, Northwest got it's start flying cargo -air mail. 70 years later they were flying a small fleet of B-747F aircraft. I seldom flew them so really cannot be a past freight dog club member. (Well flying those 254 Wisconsin dairy cattle from Narita to Taiwan might get me some leeway).

I think belly cargo is still a profit item on major air carriers?

Regards,

Dux


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Reams Goodloe
Top Gun


Reged: 05/07/04
Posts: 2582
Loc: Kent, Washington
Re: Amazon Going In the Air-Cargo Business? [Re: sreyoB yrraL]
      #419503 - 12/20/15 01:56 AM

Larry -

That current operating environment was reported by the WSJ in an article on the aircraft lease negotiations including with ATLAS and ATSG on 12/18. They said ATSG and Atlas did not respond to them, and Amazon declined to comment.... ...so, I presume they were sufficiently sure of their sources that they had no hesitation in publishing.

- Reams


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sreyoB yrraL
AVSIG Member


Reged: 05/16/04
Posts: 9442
Re: Amazon Going In the Air-Cargo Business? [Re: Reams Goodloe]
      #419509 - 12/20/15 08:15 AM

ATSG, and I assume any others that are in discussions with them, are under non-disclosure agreements and can't say anything.

The guys flying these trips say that the pallets are all covered so they can't see the packages for any identifying information. Everyone assumes it is Amazon but nobody knows for sure and, anyone who does, is under NDA.

I've received three recall notices, one from ABX and two from ATI, which were likely driven by this business. It's fun turning them down... LOL


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Bill Bridges - 9S1
Top Gun


Reged: 05/17/04
Posts: 6008
Loc: 9S1
Re: Amazon Going In the Air-Cargo Business? [Re: Bill Bridges - 9S1]
      #421334 - 01/30/16 12:13 PM

Amazon indicates in this article that it only added extra lift for "peak".

the other bill


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Russell Holton
AVSIG Member


Reged: 07/07/05
Posts: 14136
Re: Amazon Going In the Air-Cargo Business? [Re: Bill Bridges - 9S1]
      #421340 - 01/30/16 01:55 PM

Hmmmm. It would seems to me that it wouldn't pay to try and replace existing vendors for the "last mile" of delivery. But that doesn't mean that there isn't segments that they can't do more cost effectively.

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