Will Amazon Prime Air Topple UPS & Fedex?

In December 2015, Amazon announced that it would begin its own cargo airline, Amazon Prime Air, in order to expand shipping capabilities, and they’re also planning to launch a $1.5bn cargo center at the Cincinnati airport. It’s estimated that they will have 400+ aircraft before 2030. The question I want to pose is, should Fedex and UPS be worried?

Subscribe & hit the notification bell for more content on the aviation world! :)

Social Media:

CREDITS:

"The Sky Is Our Home"
Navgeek Aviation

[will.buckley]

The ad before the video was for Amazon! 😂😂😂

[flyboysaviation]

Amazon is incredibly powerful, wouldn't be surprised if it happens

[BayAreaLen]

I worked for a contractor that did loading, unloading and ramp for a daily ATI 767-200 converted freighter at Oakland International Airport, shipping for Amazon before they ever went public about getting into the shipping business. We all signed NDAs as not to disclose who the real customer was, and thus not provoke insider stock trading. Funny thing, the name of the customer was listed as "Aerosmith." Yes, as in the band. Anyhow, at the beginning of this venture for Amazon, I can tell you that they went for the lowest bidder at every level. The entire ramp operation was a disorganized mess, and more so even, a serious accident waiting to happen. That only ended up being a temporary job though anyway, as I ended up working private security at the airport, since I was already licensed as a guard in the state and a process server. Amazon is a huge company, but to get you those cheap, quickly delivered electronics you love to order, just know that some poor bastard making bottom dollar breaks his back everyday to get it to you, because Amazon is massively cheap, in order to keep it's operation cheap. Also, the reason that they are using such low percentage of FedEX and UPS is because they get ridiculous discounts via USPS from lobbying the politicians. Basically, your low priced new laptop is wonderfully cheap to buy, but has a high cost for everyone else involved in the grand scheme of things.

I've always loved the 767, but had an even new found respect for the amazing strength and durability of the plane when I used to have long talks with the pilots and maintenance crew, and found out that we were loading a 30 year old aircraft with nearly 50, 000 cycles and countless hours, as I can't even remember the ridiculously high number. She'd started her career with American Airlines back in the early/mid 80's. The pilot said she flew like a dream, and arguably was the best plane he'd ever flown, and he was certified in several.

[joshuarebelak]

I am a ramp agent for a ups hub. The amount of non amazon boxes far outweighs the boxes that are amazon. As long as there is a need for overnight or fast delivery ups would not be that affected by losing amazon business.

[GrizzlyCompany]

1:08 I worked on that plane today. :) N1997A aka Amazon One, the first in the fleet. Probably the best looking one we have.

[nikpaul]

This is a very well-put together video. I enjoyed it!

[KHALIDHUSSAIN-hpxq]

Please keep up Dated about news ups / primeair /FedEx /DHL /DATAPost/etc cargo companies

[stevenavarrete]

They also started carrying US postal mail in their aircraft that departs from CLT and arrives in Ontario airport they are increasing their flights and opening new stations throughout the US.

[jasonbabila]

In that case, Amazon should start their own parcel package deliveries as well.

[eagles]

One thing you didnt mention is DHL. Where do they factor in on all this. I find that they are alot quicker to get things where you need to get them. From my understanding and my working with DHL they have the world broken down in zones. if you send something in europe you will usually get it next day. Australia for example in 3-4 days. Any chance of doing a comparison between Prime Air and DHL given that DHL has hubs all over the world.

[davidsilver]

Very interesting video! As you mentioned, limited impact on Fedex and UPS, but amazing that Amazon will have such a large fleet. Also wonder if they will only have one hub. I would think they may want a second hub somewhere in the southwest, like Albuquerque. Or closer to a port, like Ontario, California, which already does huge cargo business.

[josephwolosz]

Hopefully they studied the business model of UPS and FEDEX. And tried to get some free agents from those companies to put the plan into effect. Supply chain problems could affect the growth of the company.

[Sacto]

I would NOT be surprised that Boeing is quietly working with Amazon on a possible freighter version of the 787. That way, Boeing could build 80-100 planes for Amazon Prime Air alongside the current 787 production.

[kingdrmemes]

Just a heads up, I guess it could be useful if Amazon builds a major air presence in Cincinnati, it’s pronounced more like Sin-Sin-Natty

[KevinDavis]

I wish they start a commercial air service.

[jhmcd]

I agree...that's basically what have been hearing. Amazon is in growth mode, and they just outgrew Fed Ex and UPS' capacity. It doesn't mean those companies are in trouble it just means that their planes are jam packed with stuff already. The irony however is that, 400 planes is the size of American Airlines. Amazon better hope they can support that 20 years from now. Pilots are hard as hell to get, and while I can see Amazon's operation attracting more than a few, they might want to start thinking like a foreign carrier when it comes to hiring.

[hedwidgeboibel]

I disagree ! As Amazon air get comfortable with making there operations work with there planes. They easy be able offer there service to business. Which makes logical sense as Amazon is fulfillment model business. Another example Amazon web services it available for other business to use on demand.

[legalizebuckets]

Woah The 767 is still going? Dan the plane is quite a trooper

[johniii]

There is currently no formal conversion program in place for 777. It’s being considered but it’s extremely costly so no final decision has been made on the aircraft So it’s a bit Premature to mention in this context

[cutieteal]

By are are not based out of Seattle though. I know that the airport can’t expand and is on the west coast so it would be difficult to reach east coast destinations and Cincinnati is cheaper and less trafficked so delays would be less common. But those are not valid