Amazon's fleet of 767s is bad news for FedEx and UPS, Morgan Stanley says (AMZN, FDX, UPS)

Amazon's fleet of 767s is bad news for FedEx and UPS, Morgan Stanley says (AMZN, FDX, UPS)


Amazon's cargo planes are poised to take market share from the logistics giants UPS and FedEx, Morgan Stanley says.

"The market is missing the risk Amazon Air poses to UPS/FDX growth," a group of Morgan Stanley analysts led by Ravi Shanker said Tuesday. 

In August 2016, the online retailer revealed its first cargo plane, Amazon One, — a converted Boeing 767 operated by Amazon partner Atlas Air — highlighting its desire to take over package-delivery logistics.

 

At the time, Amazon said it leased 40 fleet units through air cargo partners Atlas Air and ATSG, and had invested aggressively in its first air-cargo hub located in Hebron, Kentucky, in order to reduce its reliance on the traditional logistics companies like UPS and FedEx. The Wall Street Journal reported in February 2017 that the tech titan was planning a $1.5 billion investment in the air-cargo hub, which Morgan Stanley says could potentially handle 100 planes. Read more 




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