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Amazon Leasing Cargo Planes for Overnight Shipping

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The premier Internet retailer Amazon.com ( AMZN ) may soon be leasing cargo planes to run its own shipping operations in the United States.

A report by the Seattle Timescite anonymous sources claiming that Amazon is in talks with aerospace juggernaut Boeing ( BA ) to lease a minimum of twenty 767 cargo jets.

Amazon's goal of this unofficially confirmed deal is to develop a logistics department to potentially replace the outsourced middlemen that are FedEx ( FDX ), UPS ( UPS ), and the United States Postal Service. Amazon operating the shipping may lower the risk of shipment delays, which has been an issue during current and previous holiday seasons, perBusiness Insider.

Previous reports have discussed Amazon testing its own air-transportation services in Ohio and purchasing Amazon-branded trailer trucks earlier this month.

Creating an independent logistics division to manage all things shipping related will not be cheap for Amazon. According to the Seattle Times report, each 767 jet could cost as much as $600,000 a month, which totals $12 million for the reported fleet of twenty cargo jets.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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