UPDATED 22:49 EST / JANUARY 05 2021

INFRA

Amazon buys 11 Boeing aircraft to expand its cargo fleet

Amazon.com Inc. announced today that it will purchase 11 used Boeing 767-300s, a first for the e-commerce giant.

In the past, Amazon has relied on leasing aircraft. The purchase of the 11 planes, seven from Delta Air Lines Inc. and four from WestJet Airlines Ltd., is a sign of the company’s intention to go it alone and not rely solely on other carriers.

“Our goal is to continue delivering for customers across the U.S. in the way that they expect from Amazon, and purchasing our own aircraft is a natural next step toward that goal,” said Sarah Rhoads, vice president of Amazon Global Air. “Having a mix of both leased and owned aircraft in our growing fleet allows us to better manage our operations, which, in turn, helps us to keep pace with meeting our customer promises.”

The planes bought from WestJet are currently being converted from passenger planes into cargo planes and are expected to be ready for use this year. The Delta Air planes will be ready in 2022. Like the leased aircraft, all the new planes will be operated by contractors.

Amazon hasn’t disclosed how much it paid for the aircraft, although the company likely has taken advantage of harsh times for the air travel industry during the COVID-19 pandemic. West Jet had recently decommissioned all of its 767 fleet and prior to the Amazon purchase was looking for a buyer.

Amazon’s air cargo fleet was launched in 2016. Before this purchase, the company had 80 leased planes, although it’s estimated that the expansion in the coming years will see about 200 aircraft employed in the fleet. The result will be less reliance on carriers such as United Parcel Service Inc.

Right now, Amazon has a number of package-sorting hubs at airports throughout the U.S., while the company also expanded its delivery hubs as well as its number of offices in 2020. It’s reported that last year Amazon’s global workforce grew by 50% from the year before.

Photo: Christoph Scholz/Flickr

A message from John Furrier, co-founder of SiliconANGLE:

Support our mission to keep content open and free by engaging with theCUBE community. Join theCUBE’s Alumni Trust Network, where technology leaders connect, share intelligence and create opportunities.

  • 15M+ viewers of theCUBE videos, powering conversations across AI, cloud, cybersecurity and more
  • 11.4k+ theCUBE alumni — Connect with more than 11,400 tech and business leaders shaping the future through a unique trusted-based network.
About SiliconANGLE Media
SiliconANGLE Media is a recognized leader in digital media innovation, uniting breakthrough technology, strategic insights and real-time audience engagement. As the parent company of SiliconANGLE, theCUBE Network, theCUBE Research, CUBE365, theCUBE AI and theCUBE SuperStudios — with flagship locations in Silicon Valley and the New York Stock Exchange — SiliconANGLE Media operates at the intersection of media, technology and AI.

Founded by tech visionaries John Furrier and Dave Vellante, SiliconANGLE Media has built a dynamic ecosystem of industry-leading digital media brands that reach 15+ million elite tech professionals. Our new proprietary theCUBE AI Video Cloud is breaking ground in audience interaction, leveraging theCUBEai.com neural network to help technology companies make data-driven decisions and stay at the forefront of industry conversations.