How will FedEx beat back Amazon’s challenge? Here’s a hint

Last year, placed a launch order with for 50 Cessna SkyCourier 408 feeder freighters. A diversified freighter fleet and delivery network are what believes give it an edge over rising logistics players like .

FedEx yesterday offered a glimpse at how the express company will fend off competition from Amazon, which continues to develop its own Air dedicated air network.

The secret: infrastructure.

David Cunningham, president and CEO of ’s express business, said during a presentation before the Wings Club in New York yesterday that ’s infrastructure gives it an advantage over .

“The scale of — and UPS, for that matter — the hubs, the infrastructure we have built over 40 years, those things are not easily built,” Cunningham said in response to a question on how would overcome competition from .

Previously in his presentation, Cunningham laid out the scope of , which, for example, employs more than 425,000 worldwide.

Separately, Cunningham during his presentation touted ’s 72-600 and  turboprop acquisitions. He said worked directly with on aircraft design, and that the manufacturer will go from “clean sheet to delivery” in three years. Before the FedEx deal was announced last year, offered only the passenger variant of its popular turboprop aircraft. All in-service 72-600Fs are freighter conversions.

Cunningham added that continues to pursue its goal of reducing the company’s . He said “will reach that goal” of reducing its 2005 emission levels by 20% by the year 2020.

Learn more about e-commerce and its impact on demand for freighter aircraft on 10-12 October at Cargo Facts Symposium, where a roundtable panel discussion will be dedicated to the topic. For more information, or to register, visit www.cargofactssymposium.com.

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