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Amazon keeps expanding its empire
Amazon has doubled the number of air freight cargo planes it is leasing, a further build out of its internal delivery system.
Atlas Air Worldwide on Thursday said it had signed an agreement with the Seattle internet retailer to operate 20 Boeing 767 for the company for ten years.
Operations under the agreements are expected to begin in the second half of 2016 and ramp up to full service through 2018, Atlas said.
In addition, Amazon will acquire as much as 20% of Atlas.
The planes will be used to move packages between Amazon’s fulfillment centers, which package goods, to its sortation centers, which sort them into local delivery pallets that can be taken to the Post Office for bulk delivery, the company said.
The planes will also be used by Amazon to move goods between its fulfillment centers across the country to other centers where they are needed for one- and two-day delivery, as no one Amazon center can stock the 20 million items Amazon typically has available for two-day delivery.
The deal isn't surprising, said John Haber, CEO of Spend Management Experts, a supply chain management consulting firm.
“This is just the most recent step in Amazon building out a massive logistics network designed to move more of their transportation and distribution under their direct control," he said.