Amazon's debut cargo plane takes flight

In a bid to assume more control over its supply chain and reduce costs, Amazon has rolled out thousands of trailers and launched a programme that uses contract drivers to deliver fast orders. Photograph:( Reuters )

Reuters Seattle Aug 06, 2016, 08.35 AM (IST)
Amazon debuted its first branded air cargo plane during the annual Boeing Seafair's Air Show on Friday in Seattle, Washington, NBC reported.

Amazon leased several Boeing 767 widebody freighter aircraft to handle more of its own deliveries in the United States. Amazon, which relies on carriers like United Parcel Service Inc and FedEx Corp to deliver most of its packages, spent $11.5 billion on shipping last year.

In a bid to assume more control over its supply chain and reduce costs, Amazon has rolled out thousands of trailers and launched a programme that uses contract drivers to deliver fast orders.

But analysts said the plan to build its own air fleet posed little threat to the leading delivery companies.

UPS, the world's number one package delivery company, operates about 240 large planes, while FedEx has a fleet of about 370, Barnes noted. FedEx and UPS shares were down about 1.5 per cent.

Amazon has been testing deliveries by drones but has not said when they would be in service.

(Reuters)
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