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They sue Amazon for the price of their e-books – CVBJ

Bloomberg

Amazon continues to buy planes after promising a fleet of drones

(Bloomberg) – Amazon.com Inc. is opening warehouses and dispatch centers in the United States at the rate of one every 24 hours. The ultimate goal is to ensure that virtually all of the products the company sells are just one van ride, and eventually one drone flight, away from customers’ homes. And yet, last week, Amazon announced that it would purchase 11 Boeing 767-300 jets for its air cargo division, primarily for shipping products to Prime subscribers, despite creating algorithms to anticipate buyers’ needs and open All those warehouses, Amazon can’t deliver on its promise of one-day or two-day shipping to customers without an ever-growing fleet of expensive jets. That reality has become clearer since the pandemic triggered a surge in online shopping that has depleted the resources of United Parcel Service Inc., FedEx Corp. and the U.S. Postal Service, forcing Amazon to Take action.Within the company, Amazon Air is sometimes seen as more of an expensive necessity than an asset. An organization determined to deliver orders quickly and efficiently would rather move products by truck than by plane, which costs up to seven times more. It doesn’t help that many of the planes Amazon flies are older models that spew more greenhouse gases than the newer, more fuel-efficient planes, undermining its new commitment to fighting climate change – the very day it announced. On the 767 aircraft order, Amazon made 153 flights, the equivalent of one takeoff every nine minutes, between 40 airports stretching from Germany to Southern California, according to data from Plane Finder, a flight tracker. When the 11 newly purchased aircraft go into operation late next year, Amazon Air will have a fleet of 85 aircraft. The expansion of the air cargo operation will add billions of dollars to shipping costs, which amounted to $ 52 billion. in the 12 months ending in September. Although Amazon is one of the richest and most valuable companies in the world, it has historically operated on very low margins and invested cash in the business, which has at times caused consternation among investors who prefer to see the company focus on profitability. The new 767 freighters have a list price of around $ 200 million, although airlines generally receive discounts. Aviation consultants estimate that Amazon could have paid just $ 10 million each for its latest jets. Converting them for cargo transportation cost about $ 14 million per plane, according to Laurent Rouaud, co-founder of Avworks Partners, an aviation consulting firm. Amazon, Delta and WestJet declined to disclose purchase prices. If it was not clear, Amazon’s decision to purchase aircraft demonstrates the company’s long-term commitment to operating its fleet. Another milestone comes later this year, when Amazon’s $ 1.5 billion cargo terminal at the Cincinnati / Northern Kentucky Airport goes online, allowing the company to have more than 100 aircraft in a hub that is located to a day’s truck ride, or a much shorter flight, for most people in the U.S. That gives Amazon more options, which employees say is a recurring strategic goal across everything from offices and businesses even as Amazon expands its air cargo division, CEO Jeff Bezos remains obsessed with his ultimate dream: to build a network so sophisticated that it can bring almost anything to a customer’s door in 30 minutes. minutes or less. One day, his vision will bring to life another airline, the Prime Now drone fleet.Original Note: Amazon Keeps Buying Price and Jets After Promising a Drone FleetFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source. © 2021 Bloomberg LP