Amazon says it is buying 11 used Boeing 767-300 planes from Delta and WestJet, the first time the company has purchased aircraft for its air cargo operation
Amazon’s air-cargo buildout began as a leased-fleet strategy: it arranged for ATSG to lease and operate 20 Boeing 767s, then added 15 leased Boeing planes to expand the network. Buying aircraft marks a change in how Amazon supplies that operation, not a new entry into air freight.
The purchase also follows Amazon’s earlier plan to build an overnight U.S. airfreight operation around 767 freighters, including the ATSG leasing and operating agreement. It gives the company owned aircraft alongside the capacity it has historically obtained through partners.
First-order effects
Amazon adds 11 used 767-300s to its cargo operation as owned assets, while Delta and WestJet transfer those aircraft out of their fleets.
ATSG and other aircraft-leasing and operating partners now serve an Amazon network that is no longer supplied solely through leased planes.
Second-order effects
Amazon gains another way to source air-cargo capacity, strengthening its leverage when negotiating future leases, operations agreements, and aircraft availability.
For Delta and WestJet, the sale converts older 767-300 aircraft into cash rather than retaining them in their respective fleets.
Third-order effects
If Amazon continues pairing ownership with leased operations, its air network becomes less dependent on any single aviation partner and more vertically controlled.
The move points to large retailers treating dedicated logistics assets as a strategic capability rather than relying exclusively on third-party capacity.
The trend: Amazon is shifting its delivery network from partner-led leased capacity toward a more vertically controlled mix of owned and operated logistics assets.
@Techmeme @BrianRoemmele @mattmday I thought they bought 4 aircraft not all that long ago, unless they extended the deal? Good time to buy aircraft, a lot of aircraft
@mattmday
Matt Day on x
Amazon Air is just chewing through milestones. The latest, its first purchased - that is, not leased - aircraft, takes their fleet to 85+ by 2022: https://www.bloomberg.com/...
@lesliejosephs
Leslie Josephs on x
Amazon does a little bargain-hunting of its own, buying used Boeing 767-300ERs from Delta, WestJet to haul your stuff. @cirium says prices are down on average 15% in the pandemic. Story w/ @annierpalmer $DAL $AMZN https://www.cnbc.com/...
@linamkhan
Lina Khan on x
Amazon often analogizes itself to a retailer but it increasingly functions more as infrastructure. https://www.cnbc.com/...
@techlinkedyt
TechLinked on x
Just in case that whole drone delivery thing doesn't work out. https://www.bloomberg.com/...
@markkrotov
Mark Krotov on x
Indie bookstores should simply buy some planes. https://www.cnbc.com/...
@karlousm
Karlous on x
They probably bought it off Amazon prime and got free shipping. https://twitter.com/...
@dantethedon
Dante on x
More assets to depreciate so Bezos can continue to pay no taxes 👍🏽 https://twitter.com/...
@robinwauters
@robinwauters on x
Now is the time to start that Internet company you were considering. In time, maybe you too can buy just south of a dozen airplanes. https://twitter.com/...
@annemariebridy
Annemarie Bridy on x
Amazon incrementally building an independent logistics infrastructure. https://twitter.com/...
@taylorschaude
Taylor Schaude on x
@Techmeme @mattmday Big news for the transportation industry and a red flag for the airline industry that relies on air cargo as an alt source of revenue. Ex: American Airlines generated $1 billion in FY2018 from freight and mail services.
@krisvancleave
Kris Van Cleave on x
.@amazon Air bought its first 11 767s from @Delta and @WestJet. The rest of the “Prime Air” fleet is leased. Amazon has been growing its logistics arm since 2016 to deliver more of its own packages. https://www.aboutamazon.com/ ...