Truth, though the whipsaw is tough with only two competing companies- critical mass seems to be at least three.
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The SHOW: Airlines still a "good gig"??
- Thread starter A4sForever
- Start date
I’m aware of that much. In interpreting the articles as saying that Amazon is shifting to owning their own airplanes outright, with this first purchase.
Standby for Omni to get into the high volume, low margin shipping biz!
Except that every package Amazon moves through Prime Air, Atlas, or ATI is a package UPS or Fedex will not carry. The market is carrying freight/packages. Amazons own air force is competition in the market.
FedEx and UPS were moving high volume/low margin stuff. When lift is the limiting factor, why waste it on mostly cardboard and air?
I don't really know the freight business, but I know dimensions are taken into account. I remember back in the day, AA nearly paid for the gas for a DC10 to fly from HI to LA on fresh cut flowers in cargo on pax flights. Would cube out far before grossing out and made money no problem. There are smart guys at HQ who sometimes earn their keep.
I'll defer to Fred Smith. He's got a decent track record.
I think it was wise to ditch Amazon. They weren't making much profit on the stuff they were moving precisely because they were cubing out, and not subsidizing Amazon while it was apparent that they were building out their own potentially competing network was worth the short term pain of lost revenue after cutting the apron strings. We'll know if it was the right move in 30 years.
I'm kind of hoping Jeff Bezos learns the old cliche about making small fortunes out of large ones with an airline.
I always thought cargo subsidized the lower passenger fares.
Let them carry all their low margin trinkets all over the country. I prefer fedex sticks with quality over quantity!
I love “flower” flights. The airplane has never smelled so good. And neither has the FLL ramp for that matter..?
Amazon was fucking us.. Ask any Ramp Manager. They would add freight and “Amazon” flights and then last minute cancel. Cost us in lost cargo capacity and flight cancellations. And most of them were long and high paying parings.
Oh we still have their stuff from time to time; but now they pay premium.
Bloomberg - Are you a robot?
www.bloomberg.com
From the article. Seems like Amazon has more than just their own stuff in mind:
Amazon started a UPS-like parcel service in the U.K. last year, but abandoned a similar effort in the U.S. amid the surge in online orders. Much of Wall Street believes Amazon will eventually fly packages for other companies to defray investments in Amazon Air and generate new revenue streams, much the way it did with other logistics services and its cloud-computing division.
“I absolutely expect them to pick that up again,’’ says Ravi Shanker, a Morgan Stanley logistics and transportation analyst.
But for now, Amazon Air ships items already in its warehouses, typically bound for customers.
