Mistral Air adds another 737-400F, will flights reflect Amazon Logistics’ ground presence?

On 3 April, US-based Automatic LLC redelivered a 737-400F (30161, ex-Alaska Airlines) to Italy-based Mistral Air, the airline affiliate of Post Italiane. The aircraft was recently converted to freighter configuration by PEMCO, at the Coopesa facility in San Jose, Costa Rica. For Mistral Air, this is the third 737-400F to join the fleet in less than a year, representing rapid expansion for a carrier that operated a single 737-300QC and a couple of ATR 72s in mixed configuration as recently as August 2018. More puzzling is Post Italiane’s decision to invest in freighter capacity as it implements a restructuring plan in parallel. Unless of course, there’s another customer for some of that capacity. In June 2018, Poste Italiane and Amazon signed a three-year agreement to facilitate e-commerce deliveries and returns in a deal that was in line with the Post’s broader five-year, “Deliver 2022” strategy, which aims to boost parcel revenues by 70% to US$1.41 billion over the next five years. To achieve this objective, Poste Italiane said it would invest in resources and infrastructure that will enable it to better handle B2C parcel and e-commerce deliveries – a transition away from its previously mail-centric delivery model. The Post’s deal with Amazon came shortly after Deliver 2022 was unveiled, and although details have been slim, local media report Amazon has access to Mistral Air and that the deal goes beyond evening and weekend deliveries. Post Italiane declined to comment on the cargo operation, which has historically operated in overnight service for the Post out of its Brescia hub (VBS). According to data from FlightRadar24, Mistral Air’s active narrowbody fleet comprising of two 737-400Fs and a 737-300QC, continue to operate in overnight service from a base in Brescia. This does not, however, rule out the possibility of Amazon utilizing some of this capacity. Amazon has slowly been expanding its fulfillment capabilities in Italy. The majority of post offices across the country, some 11,800 of an estimated 12,300, are equipped with Amazon collection points. Amazon has also opened four fulfillment centers and eight delivery stations, mostly located in the northern part of the country, according to a release from Amazon. 2011 – Amazon opened its first Italian fulfillment center in Castel San Giovanni 2017 – Amazon opened two new fulfillment centers in Passo Corese (RI) and Vercelli 2018 – Amazon opened a fourth fulfillment center in Torrazza Piemonte, “to help meet growing customer demand and support more third-party sellers under Fulfillment by Amazon.” In addition to the fulfillment centers, Amazon operates eight delivery stations in Avigliana (TO), Origgio (VA), Rogoredo (MI), Crespellano (BO), Calenzano (FI), Vigonza (PD), Pomezia (RI) and Fiano Romano (RI) and an “urban fulfillment center” in Milan, to support Prime Now deliveries. Returning to Mistral Air’s current operations, the map below illustrates the proximity of cities currently served by Mistral’s ATR 72Fs and 737Fs, to Amazon’s fulfillment and delivery centers. Clearly, there is some overlap between Amazon's operations in Northern and Central Italy, and Mistral Air's connectivity between Rome (FCO) and Brescia (VBS). Perhaps offering even greater potential to Amazon, however, are cities served by Mistral Air that are a great distance from Amazon fulfillment centers. The role of narrowbody freighters in e-commerce fulfillment will be a major subject of interest at Cargo Facts Asia 2019, to be held in Shanghai, 15-17 April. In addition to a session devoted specifically to narrowbody passenger-to-freighter conversions, Cargo Facts Consulting’s Managing Director, Frederic Horst will also present this year’s Twenty-Year Freighter Forecast. For more information about Cargo Facts Asia, or to register, go to CargoFactsAsia.com .

Mistral Air adds another 737-400F, will flights reflect Amazon Logistics’ ground presence?

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