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Amazon Leasing 20 Cargo Planes to Boost Delivery Network

March 10, 2016
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2 min read
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Amazon Leasing 20 Cargo Planes to Boost Delivery Network
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Amazon announced this week that it has leased 20 Boeing 767 freighter aircraft for the next five to seven years, beginning April 1. While this isn't a shocking development — after all, very similar plans were leaked in December — it's a major move by Amazon. This should help the world's largest retailer provide stability to its delivery system, while also cutting costs.

Likely Amazon's biggest motivation is helping to ensure timely deliveries. After all, Amazon got a black eye back in Christmas 2013, when UPS delivered a significant number of Amazon packages after Christmas. At the time, UPS specifically cited "the volume of air packages in our system exceeded the capacity in our network." Amazon is looking to avoid that in future years as its sales continue to soar.

Amazon has leased 20 Boeing 767 freighters to boost its delivery system. Image courtesy of ATSG.

Also, this move should save Amazon shipping costs, particularly for one- and two-day deliveries. Amazon spent a whopping $11.5 billion in shipping costs in 2015 — covering a large part of the delivery distance on Amazon's own planes should help cut back these costs.

Think 20 planes won't make much of an impact? As a comparison, FedEx has 363 large planes and UPS only has 237 planes for their massive, worldwide delivery networks.

If Amazon transitions to making all deliveries themselves, perhaps they can deliver packages the right side up! Image courtesy of Shutterstock.

While this is a significant move, Amazon is only taking control of part of the delivery system. Still, this is a major development for Amazon, which will hopefully make deliveries more stable and timely for consumers. With this change, those Amex fee credits may end up directly covering airline expenses after all!

H/T: Reuters

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Why We Chose It

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Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.