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Amazon Showcases its First Boeing Cargo Plane in Seattle

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Amazon.com, Inc. (AMZN - Free Report) has made a big move toward establishing its own global logistics and transportation network.  The company recently showcased its first cargo plane “Amazon One” at the Seafair Air Show in Seattle.

This Boeing 767-300 is the first of the fleet of 40 freight jets that the company plans to fly over the next two years.

The company has been developing a complex network of fulfillment, logistics and delivery systems and the recent move appears to be a part of this endeavor. Building its own in-house shipping and logistics service will help Amazon to address increasing delivery demands and improve delivery speeds as its Prime business.  

Earlier this year, the company partnered with Air Transport Services Group, Inc. (ATSG - Free Report) and Atlas Air Worldwide Holdings, Inc. . As part of the deals, Amazon will lease 20 freight jets each from Air Transport Services and Atlas Air Worldwide.

This isn't the first time Amazon has done something that shows its growing interest in shipping and logistics. In Jan 2015, Amazon China obtained an ocean-shipping license from the U. S. Federal Maritime Commission and registered itself as an ocean freight forwarder. It has also been developing its own local delivery service in some markets.

It appears that while Amazon may not immediately do away with traditional shippers like FedEx Corporation (FDX - Free Report) and United Parcel Service, Inc. it is certainly going to build alternatives/supplements by developing its own global logistics.

"Creating an air transportation network is expanding our capacity to ensure great delivery speeds for our Prime members for years to come," Amazon's vice president of worldwide operations Dave Clark said in a statement.

At present, Amazon is a Zacks Rank #3 (Hold) stock.

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