Amazon Air preparing to expand EU operations

[caption id="attachment_15053" align="alignright" width="432"] Amazon Air is planning to establish a gateway at Leipzig Halle Airport (LEJ), the site of DHL's main hub.[/caption] Amazon Air has posted a number of job openings for European aviation professionals and plans to launch gateway operations at Leipzig Airport (LEJ). The establishment of an Amazon Air gateway at LEJ marks the operation’s first expansion outside of the United States. Aircraft emblazoned in Amazon Air livery could soon follow as many industry analysts have long expected. Although Amazon has long been procuring air cargo capacity from various operators in Europe, including affiliate carriers of ASL Airlines, DHL and others, a recent report from Germany-based KfW IPEX Bank forecast it was “only a matter of time” before Amazon Air arrived in Europe. Developments at LEJ in the coming months could provide a glimpse into how closely the European operation will mirror Amazon’s own-controlled operation in the U.S. As an airport with established cargo infrastructure, the Amazon air gateway could accommodate long-haul international flights, intra-Europe flights, or a mix of both. Amazon declined to elaborate on its vision for LEJ, confirming only its plans to establish the gateway. “We are excited to expand our operations at LEJ to increase our delivery capacity to ensure we can delight our customers in Germany and throughout Europe,” said an Amazon spokesperson. On the surface, Amazon’s selection of Leipzig resembles its choice of Cincinnati (CVG) as its global hub . When Amazon Air began operating at CVG in 2017, it utilized DHL’s facilities, which were previously only used for overnight operations. Like CVG, DHL has a sizable presence at LEJ, where it handles upwards of 2,000 tonnes of freight each day. Such a level of cooperation between the two companies at LEJ would come as a surprise. On many fronts, the two companies now view one another as competitors . When it comes to securing airfreight capacity in Europe, Amazon’s long-term strategy has yet to surface. Air operations in Europe linked to Amazon have so far involved mostly 737 Classic freighters operated by multiple operators. Arrangements in place for the lease and operation of freighters in the U.S., in contrast, include 737-800 and 767 aircraft . In Europe, Amazon Air could replicate its U.S. operation and hire the same types of aircraft and partners, or shake things up. We note the affiliate carriers of West Atlantic and ASL Airlines, two carriers known to be flying for Amazon, operate both 737 Classics and 737-800BCFs. ASL also has ten 737-800BCFs on firm order, with options for ten more. Like West Atlantic’s 737-800BCF fleet, ASL’s existing 737-800BCF fleet is in service for FedEx. ASL’s conversion backlog is not yet liked to a customer. Customers could include FedEx, Amazon, or a number of other customers. Europe’s fleet of 737 Classics also continues to grow. Last year, Leipzig-based startup carrier CargoLogic Germany launched with a pair of 737-400Fs . There are also a few 767 freighters in service with Europe-based carriers, most of which are operated by Denmark’s Star Air. It all starts with a gateway. While Cargo Facts Asia 2020 will be a virtual event, the unparalleled networking and continuing education opportunities remain, with the best and brightest minds addressing the most pressing industry issues for Asia Pacific — including those around COVID-19. To register and for more information, visit www.cargofactsasia.com .

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