FedEx, UPS holding up as Amazon Air continues to grow - Air Transport World
Amazon Air’s expansion does not pose a near-term threat to express giants FedEx and United Parcel Service (UPS), in part because the e-commerce company’s focus is on supporting its internal network rather than delivering packages to customers, a detailed Bernstein analysis concludes.
“There is limited overlap in airborne capacity over the course of a day,” Bernstein analyst David Vernon wrote in a research note based on a flight-by-flight analysis of Amazon Air and FedEx Express schedules. “Departure times are also very different. While it should be obvious that Amazon planes are flying to the same markets ... it is unlikely that Amazon is diverting volume from UPS or FedEx air networks to the in-sourced option if those planes are flying at contrasting times of the day.”
Recent comments from FedEx chairman and CEO Fred S lent credence to the analysis.
Amazon Air’s expansion does not pose a near-term threat to express giants FedEx and United Parcel Service (UPS), in part because the e-commerce company’s focus is on supporting its internal network rather than delivering packages to customers, a detailed Bernstein analysis concludes.
“There is limited overlap in airborne capacity over the course of a day,” Bernstein analyst David Vernon wrote in a research note based on a flight-by-flight analysis of Amazon Air and FedEx Express schedules. “Departure times are also very different. While it should be obvious that Amazon planes are flying to the same markets ... it is unlikely that Amazon is diverting volume from UPS or FedEx air networks to the in-sourced option if those planes are flying at contrasting times of the day.”
Recent comments from FedEx chairman and CEO Fred S lent credence to the analysis.
