It will only be a matter of time before Amazon launches its own airline in Europe as it has in the US, say analysts.
Its air capacity in Europe is mainly supplied by DHL subsidiary European Air Transport but the company looks to drive down transportation costs in Europe by gaining more control over its air network, as per a report.
It is expected that the company’s own delivery and freight capacities will also be gradually expanded in Europe. Following the creation of Amazon Air, the e-commerce firm’s shipping costs increased by 27% year on year in 2018 to $27.7 bn. However this is lower than the 33% increase in 2017 and 40% in 2016.This trend is likely to continue with the planned expansion of the fleet, as it is more cost-effective for the company to make its own deliveries.
Moving away from the traditional supply chain and using direct gateways for direct flights, the overall process is much more efficient and all data it processes internally can be used to make further optimisations of its operations, the report added.
Source : Various Agencies click this