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In 2014, the company faced a huge problem: delivering Kindle devices before Christmas. They hit a dilemma: there was no ground or air transportation available, and even for short distances, the company was encountering difficulties. The executives, alarmed by the situation, decided to create their own aviation fleet, and thus, Amazon conquered the skies of the world.
Although Amazon had spent the previous year improving its sorting centers and expanding, they still needed to rely on FedEx and UPS for their deliveries. At the time, it was already clear that these companies were unable to keep up with the delivery pace of the retail giant, and Jeff wanted to honor his promise to deliver in up to two days at all costs.
Realizing they needed to have more control over their deliveries, Dave Clark, head of global operations, instructed his transportation team to procure some aircraft. They quickly reached out to various industries to charter some planes, ensuring that in the following years they would not suffer from delivery delays.
Amazon Buys Own Fleet with Eleven Boeing Airplanes – CNN Brazil Business
The Amazon achieves the impossible in the aviation world: creates its own fleet and drastically reduces its dependence on UPS and FedEx.
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American Airlines starts selling trips as if they were flights, with check-in and baggage check at the airport, but on short routes, passengers board luxury buses connecting cities to major hubs in the U.S.
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São Paulo surprises the world with a colossal railway network project that promises over 1,000 km of tracks, R$ 194 billion in investments, and 40 projects connecting the capital to the interior with fast and sustainable trains.
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The world’s largest escalator, measuring 905 meters in China, reduces urban travel time from 1 hour to about 20 minutes and transforms mobility in mountainous regions with an engineering solution adapted to the terrain.
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A R$ 300 million logistics giant is taking shape in Serra with over 100,000 m² and raises a question: how can this transform e-commerce and distribution in the state?
The company now owns 11 aircraft and leases over 100 planes, operated by 7 air carriers, which make more than 200 flights per day across 71 airports, including a European hub near Leipzig, Germany. Definitely, Amazon has conquered the skies.
Just last year, the retailer opened a $1.5 billion air hub at Cincinnati/Northern Kentucky International Airport (CVG), one of the largest financial investments in the company’s history.
The story of Amazon Air, as it was called, demonstrates how far the company is willing to go to keep its promise. However, it’s not all smooth sailing in the paradise of the retail giant. A little over a year after the Kindle Crisis, Bezos gathered part of his team, the one he trusted the most, to deliberate on the future of Amazon Air. From now on, more serious decisions needed to be made for the company to maintain control over its deliveries.
Amazon recruited FAA-certified carriers to pilot the planes they leased or even owned. The big idea is that, this way, Amazon avoided hiring pilots directly, sidestepping bureaucracies and negotiations with unions. Therefore, more time was left for what really mattered: increasing productivity and speeding up deliveries.
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