Amazon Investing in Air Hub for Hundred Cargo Jets to Make Delivery System More Efficient

Bezos seemed too excited to disclose the plan, as it will help the company to move Prime facility from two-day delivery to one day, and the hub will be a big part of that.

Jeff Bezos, the Amazon chief, tweeted the announcement of an investment of $1.5 billion for a three million square feet air hub to increase the package delivery faster. The Amazon air hub has the capacity to line around a hundred cargo jets. Though the company does not own a hundred cargoes, the report suggests around 50 aircraft will work from this hub. The CEO claims the air hub will create nearly 2,000 jobs. The e-commerce giant expects to spend $800 million this quarter to make the change.

He was present at the event, which was held at the Cincinnati/Northern Kentucky International Airport, to inaugurate the air hub service. He started the front loader saying “Let’s move some earth,” to make the initiative more positive more efficient with the launch of regional air hubs.

Interestingly the promise of creating 2,000 jobs, with the announcement of a new cargo hub, and came way back in 2017, and now planned to open by 2021. The company had announced its plans last December to start another regional air hub at the Fort Worth Alliance Airport in Texas, which is yet to be confirmed.

Amazon has been an active member of the business community in Kentucky for nearly 20 years, and the northern Kentucky air hub is thus part of this new Amazon plan to expand its transportation network and delivery system. Now the company has announced to create new jobs and investing further in Kentucky to design a centralized air hub to support its growing fleet of Prime Air cargo planes. So in the future northern Kentucky air hub will rely less on third-party carriers such as United Parcel Service, FedEx, and the U.S. Postal Service for its business. This poses a challenge to existing key players in the logistics and shipping industry.

As of December 2018, Amazon is able to deliver packages with 40 aircraft for delivery operations at over 20 airports that makes two-day shipping possible from almost anywhere in the U.S.