Air Freight News

Amazon Air launches in India, defying slowdown fears

Amazon.com Inc. is beginning air freight services in India, expanding in Asia even as slowing online sales growth prompts cost cuts elsewhere.

The Seattle-based e-commerce giant began using cargo capacity in a Boeing 737-800 aircraft operated by partner Quikjet Cargo Airlines Pvt on Monday, and will begin making shipments via a second plane on Tuesday, Sarah Rhoads, vice president of Amazon Global Air, told Bloomberg News.

“India is really exciting. It’s an indicator of all the potential out there,” Rhoads said during an interview in Hyderabad, southern India at an event to launch the service. “The two aircraft are a start.”

Amazon Air will begin shipments in Hyderabad, Bangalore, New Delhi and Mumbai, said Akhil Saxena, vice president of customer fulfillment.

The launch in India comes as Amazon tries to sell unused space in its cargo jets, in a bid to adjust to a post-pandemic slowdown that has forced it to cut 18,000 jobs around the world.

Demand for air cargo has cooled, with the sector projected to slow down further this year. Amazon has a fleet of more than 110 planes flying to more than 70 destinations worldwide, Saxena said. The company is offering space on its planes and charter flights, on top of plans to sublet excess warehouse space.

“Not every single flight is full every single day,” Rhoads said. “We didn’t procure all sorts of capacity all over the globe and hope to fill it up. We use a lot of data and math to make our decisions.”

Amazon began its air cargo service in 2016, in what was soon seen as a challenge to United Parcel Service Inc. and FedEx Corp. Amazon Air operates out of small regional airports close to its warehouses, helping the company meet orders for one- and two-day delivery.

Bloomberg
Bloomberg

{afn_job_title}

© Bloomberg
The author’s opinion are not necessarily the opinions of the American Journal of Transportation (AJOT).

Similar Stories

Flood damage at Auckland Airport halts international flights

New Zealand’s biggest airport delayed the reopening of its international terminal Saturday because “critical components” of the infrastructure were damaged by severe flooding after a sudden summer storm.

View Article
Italy starts talks with Lufthansa to sell minority stake of ITA

Italy initiated talks with Deutsche Lufthansa AG to sell a minority stake of ITA Airways, the successor of Alitalia SpA, in a move that may kick off aviation industry consolidation…

View Article
Alaska Air CEO says Silicon Valley business travel has dried up

The head of Alaska Airlines says Silicon Valley technology companies have “turned off” their business travel, and it could be as much as another year before they start booking trips…

View Article
https://www.ajot.com/images/uploads/article/WFS_Cargo_at_Paris_CDG_.jpg
Zongteng Group chooses WFS for Boeing 777F freighter flights as e-Commerce cargo boosts
View Article
Boeing-DOJ ‘sweetheart deal’ decried by victim’s wife

Naoise Connolly Ryan told a Texas judge she’s refused any of the $500 million Boeing Co. was required to set aside to compensate families of 737 Max crash victims under…

View Article
Auckland Airport halts domestic, international flights on floods

Auckland Airport said it would halt domestic and international flights until noon on Saturday after New Zealand’s biggest city was hit by incessant rain that flooded the terminal buildings.

View Article