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Amazon (AMZN) Expands Air Fleet With 11 Boeing Aircraft Purchase
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Reportedly, Amazon (AMZN - Free Report) recently purchased 11 used Boeing 767-300 aircraft in a bid to strengthen in-house shipping and logistics service to support the company’s Prime-based ultrafast delivery services.
Notably, seven planes have been purchased from Delta Air Lines Inc. and the remaining four from WestJet Airlines Ltd.
The WestJet aircraft are currently being converted to cargo use and will join Amazon’s fleet this year, while the seven planes from Delta will join the fleet in 2022.
The latest move is in sync with the company’s deepening focus on expanding air cargo operations in a bid to ensure timely delivery of the rising number of ordered goods.
The newly-purchased cargo planes will be added to Amazon’s air fleet operations, which will aid it in bringing more than 85 planes in service by the end of the next year, per reports.
The latest announcement holds promise for the company amid this coronavirus crisis, due to which consumers are afraid of stepping out of their houses and hence, are ordering most items online.
Expansion of fleet operations will add strength to the company’s existing delivery capacity, which, in turn, will help it enhance the shopping experience of customers during this unprecedented time. This will continue to instill investor optimism in the stock.
The company launched Amazon Air in 2016. Since then, the company has invested huge amount to create new jobs at Amazon Air locations across the United States.
Last year, it launched its first-ever air hub at Leipzig/Halle Airport in Germany and regional air operations at various locations. In June, the company partnered with Air Transport Services Group (ATSG - Free Report) to lease 12 additional Boeing 767-300 converted cargo aircraft.
The latest move is likely to aid the performance of Amazon Global Air in the near term.
In addition to the recent deal, Amazon teamed up with a low-cost carrier, Sun Country Airlines, last December for flying a fleet of 10 converted Boeing 737-800 freighters.
Additionally, the company’s partnership with Atlas Air Worldwide Holdings to expand its domestic air network is a positive.
The e-commerce giant’s tie-up with GE Capital Aviation Services (GECAS) to increase the number of aircraft is also encouraging. Per the deal, Amazon has leased 15 Boeing 737-800 aircraft from GECAS.
As part of the Amazon Air network, these cargo aircraft are expected to be fully operational by 2021.
Bottom Line
Amazon is leaving no stone unturned to enhance delivery services further in order to sustain customers and Prime momentum.
Therefore, we believe the company is moving in the right direction by gaining control over the delivery services network, which is likely to continue providing it a competitive edge over retailers like Walmart (WMT - Free Report) , Target (TGT - Free Report) and Kroger, among others, that are also making efforts to strengthen their delivery network in an effort to gain customer momentum.
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Amazon (AMZN) Expands Air Fleet With 11 Boeing Aircraft Purchase
Reportedly, Amazon (AMZN - Free Report) recently purchased 11 used Boeing 767-300 aircraft in a bid to strengthen in-house shipping and logistics service to support the company’s Prime-based ultrafast delivery services.
Notably, seven planes have been purchased from Delta Air Lines Inc. and the remaining four from WestJet Airlines Ltd.
The WestJet aircraft are currently being converted to cargo use and will join Amazon’s fleet this year, while the seven planes from Delta will join the fleet in 2022.
The latest move is in sync with the company’s deepening focus on expanding air cargo operations in a bid to ensure timely delivery of the rising number of ordered goods.
The newly-purchased cargo planes will be added to Amazon’s air fleet operations, which will aid it in bringing more than 85 planes in service by the end of the next year, per reports.
The latest announcement holds promise for the company amid this coronavirus crisis, due to which consumers are afraid of stepping out of their houses and hence, are ordering most items online.
Expansion of fleet operations will add strength to the company’s existing delivery capacity, which, in turn, will help it enhance the shopping experience of customers during this unprecedented time. This will continue to instill investor optimism in the stock.
Amazon.com, Inc. Price and Consensus
Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote
Strong Efforts to Expand Air Fleet
The company launched Amazon Air in 2016. Since then, the company has invested huge amount to create new jobs at Amazon Air locations across the United States.
Last year, it launched its first-ever air hub at Leipzig/Halle Airport in Germany and regional air operations at various locations. In June, the company partnered with Air Transport Services Group (ATSG - Free Report) to lease 12 additional Boeing 767-300 converted cargo aircraft.
The latest move is likely to aid the performance of Amazon Global Air in the near term.
In addition to the recent deal, Amazon teamed up with a low-cost carrier, Sun Country Airlines, last December for flying a fleet of 10 converted Boeing 737-800 freighters.
Additionally, the company’s partnership with Atlas Air Worldwide Holdings to expand its domestic air network is a positive.
The e-commerce giant’s tie-up with GE Capital Aviation Services (GECAS) to increase the number of aircraft is also encouraging. Per the deal, Amazon has leased 15 Boeing 737-800 aircraft from GECAS.
As part of the Amazon Air network, these cargo aircraft are expected to be fully operational by 2021.
Bottom Line
Amazon is leaving no stone unturned to enhance delivery services further in order to sustain customers and Prime momentum.
Therefore, we believe the company is moving in the right direction by gaining control over the delivery services network, which is likely to continue providing it a competitive edge over retailers like Walmart (WMT - Free Report) , Target (TGT - Free Report) and Kroger, among others, that are also making efforts to strengthen their delivery network in an effort to gain customer momentum.
Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>