(Forget about the fabled gorilla in the room, here we examine the reality of an 800 pound Amazon)
Early last month Bill Boesch, the distinguished and eloquent former President of American Airlines Cargo, and now who delivers Special Commentaries in our sister E-Zine Flying Typers, explained how Amazon has the capability to transform the air cargo landscape.
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For example, the e-tailer is already “its own air cargo customer” thanks to its ACMI contracts for Boeing aircraft with ATSG and Atlas which will give it a fleet of more than 50 freighters by next year. This leaves integrators such as UPS and FedEx in the position of both providing services to Amazon – one recent report claimed Amazon accounts for 6.5% of total UPS revenue and 4.7% of FedEx revenue - as well as competing with it for customers and their cargoes.
What’s more, Amazon can easily upscale its air freight operations, either by buying out one of its air charter partners or by acquiring or partnering with an integrator. “Either move by Amazon would change the face of America’s air cargo industry and cause withdrawal or consolidation of the present U.S. cargo charter carriers, and maybe even one of the integrators,” argued Boesch.
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