Thursday, January 21

Why is Amazon buying used Delta and WestJet planes?

Why is Amazon buying use Delta $14WestJet planes?

Delta’s planes average 20 years old $14would be valued between $13 $14$14 million.

Spencer Plat / Getty Images

Amazon reported this Tuesday that he is buying 11 Boeing 767-300 aircraft use of Delta $14WestJet in a strategy to strengthen its fleet of cargo planes. This is the latest sign of how cargo airlines are growing as passenger airlines rush to reduce their fleets due to the COVID-19 crisis that is hurting the dem$14for travel.

Is about four WestJet aircraft that the company is converting into cargo planes $14will join the fleet of Amazon Air this year, while the seven planes Delta they will be added in 2022 after conversion, Amazon said.

The announcement comes as it became increasingly common to purchase products online $14after the holiday season generated increased dem$14for deliveries. Amazon continues to push for faster delivery of its products amid a surge in online orders that has fueled the coronavirus pandemic.

The company has been building a fleet of aircraft dedicated to its cargo operations of Amazon Air through lease agreements, but Tuesday’s announcement marks its first direct purchase of planes.

“Having a mix of owned $14leased aircraft in our growing fleet allows us to better manage our operations, which in turn, helps us keep pace with delivering on our customers’ promises,” said Sarah Rhoads, vice president of Amazon Global Air, it’s a statement.

By the end of 2022 Amazon Air estimates have more than 85 aircraft. The company launched its airline fleet in 2016 while it was expected that it would reduce its dependence on companies such as UPS or FedEx however Amazon it continues to depend on external delivery people to make its deliveries but has also rapidly accelerated its internal logistics operations.

Related: Increased space for travelers: Delta announces that it will vacate the middle seat on its flights until March 30.

The effect of the coronavirus

Currently the fleet of Amazon Air is operated by Atlas Air Worldwide Holdings $14Air Transport Services Group. The expansion is the result of the increase in cargo registered last year. The Kentucky-based company’s air hub is valued$1 $ 1.5 billion $14it could open this year. It has a capacity for 100 aircraft $14logistics experts hope it can handle about 200 daily flights.

Delta $14other airlines have accelerated the retirement of planes to help cut costs as the virus $14travel restrictions aimed$1 curbing the spread of the disease are keeping large numbers of travelers$1 home.

So much Amazon as Delta $14WestJet they have not reported the price of planes that have plummeted due to the coronavirus crisis. According to Rob Morris, a consultant from Ascend, said Delta aircraft are an average of 20 years old $14would be valued between $13 $14$14 million each, as reported CNBC.

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