Air Transport Services Group (ATSG) has probably expanded its fleet of freight aircrafts for helping the delivery operations of Amazon.
Amazon’s logistical operations might be boosted by the initiative taken by Air Transport Services Group (ATSG). On Wednesday, ATSG said it has extended an air cargo delivery agreement widely assumed for the American e-commerce company and is interested in expanding the trial before its planned expiry in March.
ATSG started local flights with two aircrafts for Amazon in September to help it better control its delivery operation. The facility was increased to five Boeing Company 767s in November. A Wilmington’s official asked if the freight airline was capable of expanding its flights to China and Europe for its “U.S. e-commerce customer”; it responded it could “if there is a desire for that.”
The online e-commerce company told later Wednesday any extension of e-commerce related activity was not related to its American trial facility. Amazon also discussed with air cargo service providers to develop its own freight operation and lease aircrafts, with the objective of declining its dependence on conventional carriers.
CFO of ATSG, Quint Turner, addressed an investor conference on Wednesday by saying, “We’d like to extend our provision of services to that customer for a longer period of time.” He did not identify Amazon, but made no efforts to draw attention away from it during the questions of audience. The facility presumed for the Seattle-based company is provided throughout the week through the main center of ATSG based in Wilmington Air Park.
Flight tracking facilities trace aircraft travelling to and from airports located near the biggest distribution centers of Amazon. “The trial, at least from a performance standpoint, has been successful,” said Mr Quint. Whereas the online retailer is conducting an exploration of its own aircraft’s lease, officials of ATSG told they had an edge over competitors due to their sought-after 767 jets – most of which converted from passenger service.
ATSG is the biggest wide body 767 freight aircrafts operator with 47 aircrafts. Chief executive of ATSG, Joe Hete, noted the order book at Boeing Company was already full with aircrafts that are supposed to serve US Air Force and FedEx Corporation, leaving competitors to find second hand aircrafts to convert.
Mr. Hete said a converted aircraft cost around one-third of $75 million, which is the price at which new 767 freight aircraft is being offered. The Willington hub, which makes up the entrance of Deutsche Post AG DHL into United States local delivery early in 21st century, is ready with equipment used to sort parcels and other belongings that would help it scale a shipping operation.
In 2008, DHL announced the abandonment of its effort in the US after losing billions of dollars on the venture. The push by Amazon for air cargo facilities has stemmed from an extensive desire for better controlling its package and shipping delivery operations in those days when the costs of transportation increased despite of a decline in the prices of fuel.
No comments:
Post a Comment