The German paper Sueddeutsche Zeitung reported that discussions between Amazon and the Frankfurt-Hahn Airport had taken place, and that the airport planned to decide between three possible bidders soon. The freight industry news site Lloyd’s Loading List noted that the Hahn airport is located near Koblenz, Germany where Amazon operates a large fulfillment center, one described as covering the same amount of space as 17 football pitches.
Amazon plans to offer expedited one-hour delivery across several cities in Germany, with city distribution centres. CEP-Research recently reported that Amazon planned to invest €1.2m in its logistics facility at Leipzig.
Amazon has already entered the air freight market, famously signing a deal with ATSG for the operation of 20 767Fs from Wilmington Ohio. It is also set to buy an initial 9.99% stake in the aviation group at its next stockholder meeting, or by July 8, and has been granted warrants to do so by the US SEC.
The e-commerce giant is, according to industry sources, ultimately looking for a further 40 767s, many of which will need to be converted from passenger stock.
“Amazon is experimental and opportunistic,” said Brian Clancy, managing director of Logistics Strategy & Capital, at the CNS Partnership event in Nashville last week.
“It sees distressed assets it can take advantage of. And it likes to experiment. Amazon uses predictive demand and ships before an order,” he explained.
“It doesn’t want to be a last-mile deliverer, and wants to know how it all works, so it is experimenting. It is not so interested in owning aircraft unless it makes economic sense. And it has shareholders that understand. Amazon is experimental, opportunistic and definitely disruptive.”
A source close to the Wilmington operation said it was still not clear how Amazon’s investment in ATSG would affect the aviation group.
“But once it has acquired the final 10% stake, it will have a seat on the board and learn about the airfreight operation.
“Is it good for ATSG? I’m not sure yet. But it’s good for Amazon. It is buying the shares at a set price, and they have already gone up. It can make a profit already.”
