Airlines face Q4 capacity 'balancing act' as they weigh up ecommerce potential
Air Transport Services Group (ATSG) has made a further deal to operate freighters for Amazon ...
While bankers and the more mainstream media have expressed concern that FedEx and UPS could be impacted by Amazon Air operations, a Bernstein research note backs FedEx’s claims that Amazon is not a current credible threat. The analyst points to the fact that Amazon’s network is predicated on its internal network, while FedEx and UPS have a hub-and-spoke delivery network, developed over decades. The analyst notes: “FedEx’s Memphis-based network touches 130 places multiple times per day, whereas the Amazon Prime Air network touches 20 places and each of those places does not get daily service.
“As a result, we think Amazon Prime Air has a more limited commercial value proposition for expedited products shipped via FedEx or UPS and is not necessary for deferred products.” ATW reports
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