Amazon, through its logistic department, is taking a big leap forward. The online seller has recently announced that it is leasing 20 units of Boeing 767s. This fleet will enable the company to fast track its shipments to customers all over North America.
This lease agreement was corroborated by Air Transport Services Group which said that the online marketer has contracted 20 of its planes from five to seven years.
Amazon's announcement confirms the rumors starting in late 2015 that the company is looking to operate its private cargo planes. This will enable it to have more control of its delivery processes from third-party logistic partners such as UPS, the USPS and FedEx. The scheme will also help the company avoid major delays in shipment and most of all - save money.
The fleet initiative was coursed through the Amazon Fulfillment Services, a subsidiary company. It signed the fleet agreement with the ATSG. According to the ATSG, the planes will be used to "to operate an air cargo network to serve Amazon customers in the United States."
"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," said Amazon's Senior Vice President Dave Clark. He handles the worldwide operations and customer service of the online seller.
Amazon has been running tests on a fully customized network of air cargo services since last summer. Further details regarding the lease contract will be released by the ATSG in a Securities and Exchange Commission filing.
But some details can be gleaned from a report of the Seattle Times. The cost of leasing a new Boeing 767F approximately ranges from $600,000 to $700,000 for one month. For a converted passenger plane the cost runs from $300,000 to $325,000.
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