Amazon launches its own cargo fleet in India

Amazon will launch its personal air cargo fleet in India, as a part of the worldwide e-commerce big’s effort to increase and achieve extra management over logistics operations in one among its largest and fastest-growing markets, folks with information of the plan mentioned.

Amazon’s signature Prime Air will carry packages solely for the corporate and can function the acquainted mild blue “Smile” brand on the fuselage. Anticipated to take off later this month, the fleet might be operated by QuikJet, a Bengaluru-based cargo airline that could be a three way partnership between Cyrus Guzder of provide chain firm AFL and Eire-based ASL Aviation Group.

Whereas the fleet will initially have two Boeing 737-800 Freighters, able to carrying as much as 23.9 tons of cargo, Amazon plans to have six such planes by the top of this 12 months, the folks mentioned.

Amazon had not responded to an e mail requesting remark as of Friday’s press time. QuikJet couldn’t be reached for remark.

India is the primary market exterior of the US and Europe the place Amazon is launching its devoted air freight operations, which can assist it construct its personal in a single day supply community right here as nicely. The Seattle-based firm launched Prime Air within the US in 2016 and operates from airports close to its warehouses.

The fleet consists of 91 plane worldwide, together with small Boeing 737s, mid-size 767s and ATRs. All of those are leased and operated by third events. In Europe, the ASL Group manages Amazon’s air freight operations.

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QuikJet was shaped in 2007 by IL&FS, Tata Capital and IDFC extension, however needed to cease operations in 2013 because of the excessive oil value. Final 12 months, Guzder and ASL teamed as much as revitalize it: “Having Amazon as a devoted buyer will make the QuikJet mannequin profitable this time round, as it’s going to utterly eradicate its dependency on carriers and have certainty of income,” agrees one Particular person conscious of planning he mentioned.

In India, one among Amazon’s largest markets exterior the US, the corporate has a big base of “Prime” prospects, in keeping with a report by brokerage agency Bernstein. Amazon presents same-day or next-day supply to Prime prospects.

The corporate believes increasing logistics is essential because it seeks to expedite deliveries and make the method less expensive, mentioned folks briefed on the plan.

“Whereas Amazon has fortunately tapped into airways’ stomach area indigo, SpiceJet, felt it wanted extra management over its air freight community because the variety of Prime prospects in India has elevated considerably,” mentioned the beforehand cited individual. “A devoted cargo airline offers the corporate management to maneuver its objects from its warehouse to close by smaller cities in a single day.”

India may also function a hub for different international locations in Southeast Asia, he added.

Amazon Transportation, the US e-commerce big’s native transport service that homes the logistics enterprise, is planning to open up its logistics infrastructure in India to non-Amazon orders for varied on-line firms, ET had reported.

Indian airways are growing their cargo capability, with the devoted freighter fleet rising from simply 5 plane earlier than Covid to twenty-eight now. IndiGo, SpiceJet, Air India Categorical and Bluedart additionally plan to introduce extra planes for cargo transportation.

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