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Amazon is rapidly expanding its air fleet to handle more of its own shipping

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Amazon is becoming a player in the logistics and shipping industry. That's what analysts think about the recent expansion of Amazon Air to include 50 planes and several new regional hubs, including a $1.5 billion hub opening in northern Kentucky in 2021. (www.cnbc.com) Mais...

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mukonjemartin
Martin Mukonje 5
any form of competition ultimately benefits the consumers
watkinssusan
since the time this article and the discussion on it was posted,a boeing767 used as part of the amazon delivery fleet crashed into the bay off galveston, texas about 30 minutes from arrival at bush international..I believe it was from a group called atlas,but it was being used as prime air for amazon..the recovery process is slow because the area is very close to the beach and is mainly swamp grass and mud..there were 3 crew members onboard, and all three perished..news outlets have not yet reported on a cause as the ntsb and faa are still investigating...sympathy to the famililes of this crew..
canuck44
canuck44 1
One news outlet stated they were trying to avoid "weather". We will need to wait to see what the definition of weather is.
ewrcap
David Beattie 1
If you look at the trace of the flight, they were at least twenty miles from the line. I’m baffled
sgbelverta
sharon bias 4
I buy as much as possible on-line, as I hate the city traffic. I've tried WalMart on-line with store pick-up and it was just OK. Target on-line was good. Still can't beat Amazon. I place 10-15 orders per month with Amazon. The Prime membership fee is well worth the benefits. I'm lucky because Safeway deliver's groceries in my area. And DoorDash delivers prepared food (even from Taco Bell). I'm seriously considering getting rid of my car and just using Uber to go places I have to drive. Running the numbers right now. Amazon, FedEx, UPS, USPS are all my friends.
DamonOverboe
Damon Overboe 0
Completely off topic a bit, but a good friend of mine did that, and we're not in a city with great public transportation. They're using eMeals + Instacart for groceries. They use Uber or Lyft on occasion and somehow find discounts on them. On days when they really need to run errands, they rent a car from Enterprise for the day. Overall he figures they're saving money. But for me without reliable public transit it doesn't save enough to justify it.
cparks
cparks 2
Um...

https://www.usatoday.com/story/news/2019/02/24/amazon-prime-air-cargo-plane-crash-one-body-recovered-search-ongoing/2971795002/
E1craZ4life
Edward Bardes 2
Amazon is operating out of DHL's CVG facilities during the daytime while they wait for their own facility to be built.
chalet
chalet 1
Pssst, Mr. Bezos, I have an oil refinery in the Philadelphia area to sell you so that your fuel costs can come down in a big way (it did not work out for Delta, but never mind).
data4unme
Fred Christensen 1
...free enterprise. :)
watkinssusan
this is actually a good idea..amazon does an enormous business and its expanding daily..most people love to order from them,and get delivery asap..maybe this will speed up the process..
RRKen
Kenneth Schmidt 3
This will only speed up the delivery process in large Urban areas. For those of us who live in rural areas, it will do nothing to speed up package delivery. And it will increase costs over traditional carriers such as UPS and USPS (which already has infrastructure in place).

I don't need my purchases the next day. UPS for example has been very good in delivering orders on the third or fourth day from Louisville.

The only reason I make purchases from companies like Amazon is local retailers will not provide goods I want, be it Levi's 550 jeans, or a copy of the Sherlock Holmes Collection. They only cater to the Millennials, not older people.
paulgilpin1953
paul gilpin 1
well stated.
DamonOverboe
Damon Overboe 1
Snarky: Should we start a pool about how long it takes until Amazon treats their pilots like they do their line workers?
bobdupont1
bobdupont1 1
As Amazon does not have a FAA airline authority, Amazon contracts with 3 airlines to carry their packages. Atlas Air ( the one that crashed), ABEX Airlines and Air Transport International. It has been this way from the beginning of Amazon using aircraft with their paint and name on the aircraft. This is the same as DHL does in the USA using many US airlines with DHL paint on the aircraft. DHL uses these 3 airlines and others. Common in the cargo world.
KobeHunte
Kobe Hunte 1
very interesting and awesome!
canuck44
canuck44 0
Amazon now has some competition for this market so they will have to control their costs very carefully. Walmart is now in the same business with a big advantage over Amazon as they have stores all over America supported by huge distribution centers. Their costs for free two day shipping or free same day pickup are for the most part already absorbed.

I still use Amazon but it is a tenth of my previous pattern. It is so easy...order online and make appointment to pick up groceries and dry goods, drive in, give your name and they load everything in your car. Ten minutes is all it takes and give a lot of satisfaction driving by the thousands of tourons in the parking lot.

It is season in Florida. Touron = combination of touris and moron.
mukonjemartin
Martin Mukonje 0
great analysis
scott8733
scott8733 -1
Touron- zinger of the day, 44! Love it.

Only question I have is- are they more Tourist or Moron, or an even 50/50 split?
paulgilpin1953
paul gilpin 0
50/50 would probably be indicated by the dual use of touron or morist.
a majority of either should be self evident.
canuck44
canuck44 -2
LOL...Tourons come as a combination of subsets. We have the short stays who turn over on the weekends and have to restock everything in the stores on Saturday or Sunday.So they can lay about for the next week. Easily spotted as they arrive in short shorts, Tee shirts and bathing suit tops while the locals are wearing three layers as the temperature is only 72.

We have the All Season variety who are best know for driving around early in the morning when the rest of us are trying to get to work. I think they take great delight in knowing they can go home and lay in the sun having screwed up our day.

Next to my Walmart is a huge mobile home park (tornado bait)and they all come on bicycles and golf carts.They have flags on the back of the golf carts and I cannot figure out is for us to avoid running them over or an assistive devise to help them get home.

Finally we have the East Coasters. They come from the East Coast of Florida for the weekend to escape the same mess over there.
Robinrec
Rob Reckard 11
Always have to laugh at the arrogance of the Floridians. 90 percent of those who claim the visitors are "tourons' actually were not born there although they now feel they have some superiority because they have full time residence. The economy of the state is driven by those pesky tourons, who visit and spend a ton of money. If your environment bothers you so, why not move, or go visit another environment quite often,that's what we tourons do. See you soon!!

scott8733
scott8733 2
Subsets- fantastic......almost akin to the 4,000 or species of cockroaches sounds like!
chalet
chalet 0
LIMAO, you made my day!!!
ClydeOconnor
Clyde Oconnor -6
Welcome to the real world amazon !
You are about to get a lesson in shortages .
As in pilot , mechanic , aviation in general .
Get ready for all consumer goods that amazon sells
To go UP! Planes aren’t cheap , neither are pilots
If they pull it off , it will be amazing not amazon !
beilstwh
beilstwh 2
By bringing logistics in house Amazon is saving on average $2 a package. That's billions a year in savings. They are still mostly using the post office for the last mile delivery.
ClydeOconnor
Clyde Oconnor 0
I’m m not sure about your aviation experience but all of mine tells me
Prices will go up , up , . They may by saving
In external cash flow (not having to pay vendors ) however the cost of infrastructure is way more costly than using vendors . There is also more leverage in keeping your costs fixed when sourcing . The cash will stay in house but the prices will go up. 2 plus 2 does not equal 3 .

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