Amazon.com, one of the largest e-commerce giant is expanding. The company is leasing 919 acres from Cincinnati airport in Hebron, United States. This will be its largest internal logistics and shipping businesses that will allow 200 flight departures and landings per day at a $1.49 billion. It will be home for at least 40 cargo planes. Amazon starts its own air service! – The Amazon Prime Air, a group of vehicles that functions under the name of Amazon, will function from here.
However, Amazon has also said its plane leases are designed to supplement, rather than replace its cargo partners like FedEx and UPS. But experts believe this move will render the latter as competitors, as it seemed to be longer-term decision aimed at lowering shipping costs.
The flight estimate offers new insight into Amazon’s plan to handle shipping in-house, cut costs and speed packages to shoppers. It is written in the lease term sheet that Amazon and the airport expect to sign, said Candace McGraw, chief executive of Cincinnati/Northern Kentucky International Airport.
In the south lot, Amazone plans to have more than 100 parking spaces for planes. Amazon’s plane leases were for 10 years or less. The airport lease is for 50 years.
This move by the e-commerce giant comes as Amazon has some trouble keeping up with demand during busy periods like the holidays, even with all the shipping partners it currently enjoys. The idea of owning its own piece of cargo service could help build up its maximum capacity.