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FedEx Discussions
Amazon Considering Starting Own Express Airline
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<blockquote data-quote="MrFedEx" data-source="post: 1976247" data-attributes="member: 12508"><p>No. An Amazon plane full of small high-value packages equals a lot of revenue, because Amazon not only gets the money from the sale of the item, but they generate additional profit by providing timely, premium transport. Don't you think Amazon is going to tack-on a hefty charge that not only covers their costs, but also provides a profit? Obviously, they've done research that indicates that a lot of people are willing to pay through the nose to actually get it faster. Amazon Airlines isn't going to be carrying diapers, cat litter, and popcorn like we do.</p><p></p><p>I distinctly remember talking with a FedEx VP about "white gold", his term for OLs and Courier-Paks. They don't take-up a lot of space and don't weigh a lot so an airplane full of them would be much more profitable than a planeload of P1 boxes. Small and light equals big profits and no problems with lift capacity.</p><p></p><p>Your argument that the revenue exists regardless of who flies the packages ignores the fact that act of transporting them could be highly lucrative. In fact, FedEx enjoyed much higher profit margins when we were an "envelope airline".</p></blockquote><p></p>
[QUOTE="MrFedEx, post: 1976247, member: 12508"] No. An Amazon plane full of small high-value packages equals a lot of revenue, because Amazon not only gets the money from the sale of the item, but they generate additional profit by providing timely, premium transport. Don't you think Amazon is going to tack-on a hefty charge that not only covers their costs, but also provides a profit? Obviously, they've done research that indicates that a lot of people are willing to pay through the nose to actually get it faster. Amazon Airlines isn't going to be carrying diapers, cat litter, and popcorn like we do. I distinctly remember talking with a FedEx VP about "white gold", his term for OLs and Courier-Paks. They don't take-up a lot of space and don't weigh a lot so an airplane full of them would be much more profitable than a planeload of P1 boxes. Small and light equals big profits and no problems with lift capacity. Your argument that the revenue exists regardless of who flies the packages ignores the fact that act of transporting them could be highly lucrative. In fact, FedEx enjoyed much higher profit margins when we were an "envelope airline". [/QUOTE]
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