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Amazon leases 20 planes to build its own logistics network in the US

Via Supply Chain Digital : In order to reduce dependency on third-party freighter services, Amazon is building its own logistics network to keep up with customer demand. The online retailer has partnered with Air Transport Services Group and has leased 20 Boeing 767 freight aircraft to set up its own fleet.

The planes will be leased for five to seven years and run by various divisions of Air Transport Services Group, allowing Amazon to run its own logistics network in the US.

Dave Clark, Senior Vice President of Worldwide Operations and Customer Service at Amazon said: “We offer Earth’s largest selection, great prices and ultra-fast delivery promises to a growing group of Prime members, and we’re excited to supplement our existing delivery network with a great new provider, ATSG, by adding 20 planes to ensure air cargo capacity to support one and two-day delivery for customers.”

With this, the retail giant would be able to meet the demand of same- and next-day delivery for its customers, particularly Prime members.

Amazon works with third party logistics companies such as UPS and FedEx. But over the last few months, it has hinted about insourcing part of the logistics business. It has also been investing in logistics and transportation services including trucks and drones.

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