Where the coronavirus has affected air travel operations around the world, Amazon Air is one of the few careers that have seen an increase in the demands. People at home are ordering more goods from its namesake e-commerce website and now analysts are debating how fast its fleet can grow.
It has already added 12 new aircraft to its cargo fleet, which now stands at more than 80, to address the increasing demands of shipment. The cargo airline that began its operations in 2016 as Prime Air is also expanding the ground network. The company has taken all aircraft on the lease, which are operated on behalf of the company by other airlines such as Sun Country Airlines an Air Transport International.
The analysts are assuming that the career would have a fleet of around 198 aircraft by 2028 if it can maintain its current growth. According to a report published in 2019, the company could have 95 aircraft by the end of 2025. But the fleet is still smaller than fleets of FedEx, UPS, and DHL, which have 463, 275, and 77 aircraft respectively. But, notably, these companies are serving more international routes than Amazon Air.
According to another report, the best and fasters way for Amazon to grow its fleet is to acquire other cargo careers. The company owns a 20% stake in Air Transport Services Group and it has warrants to buy up to 30% of Atlas Air. Amazon can grow the fleet faster by acquiring small careers.
But not all analysts agree with this study as many analysts don’t believe that Amazon would take the growth path mention in this study. Whether or not the company would decide to grow the fleet of smaller aircraft would depend on if they want fast delivery to small towns in the USA or not.
The delivery demand however has increased rapidly amid the coronavirus pandemic, as the people are avoiding going to a store to shop. The company and the contractors operate 100 flights a day and are planning to add new cargo routes.