Amazon to expand air cargo operations to India
- ByStartupStory | January 24, 2023
Amazon announced on Monday that it will expand its air cargo operations to India, signalling new growth for the company’s logistics division even as it seeks to cut costs in other areas.
To ship packages between Hyderabad, Bengaluru, Delhi, and Mumbai, the e-tailer uses two Boeing 737-800 aircraft flown by Quikjet Cargo Airlines. Amazon Air will allow the company to provide faster deliveries to customers in India, according to Sarah Rhoads, vice president of Amazon Global Air.
Amazon Air’s launch in India comes as Amazon CEO Andy Jassy conducts a broad review of the company’s expenses in the face of a worsening economic outlook and slowing retail sales. Amazon began the latest phase of the largest layoffs in its 28-year history last week, which is expected to result in the layoff of 18,000 employees. Jassy has looked for other ways to cut costs, such as instituting a hiring freeze across Amazon’s corporate workforce, cancelling some projects, and halting warehouse expansion.
Even as he looks to cut costs, Jassy has previously stated that the company will continue to pursue long-term opportunities and invest in its stores, advertising, and cloud-computing businesses, among others.
Amazon Air, which launched in 2016, outsources its operations to a number of airlines. The service gives Amazon more control over the speed and cost of deliveries, which it has worked to reduce from two days to one- and same-day in more parts of the United States.
Amazon Air began operations in the United States before expanding to Europe. India is Amazon Air’s third market and its first in Asia.
Amazon has been working for years to expand its presence in India, which is poised to become one of the world’s fastest-growing e-commerce markets.
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