Amazon to launch dedicated cargo fleet in India

Amazon’s signature Prime Air will exclusively transport packages for the company and carry the familiar light blue ‘smile’ logo on the aircraft fuselage. Likely to be launched by the end of this month, the fleet will be operated by QuikJet, a Bengaluru-based cargo airline which is a joint venture between Cyrus Guzder of supply chain company AFL and Ireland-based ASL Aviation Group.

While the fleet will initially have two Boeing 737-800 freighters, which can carry up to 23.9 tonnes of cargo, Amazon plans to have six such aircraft by the end of this year, the people said.

Amazon did not respond till press time Friday to an email seeking comment. QuikJet couldn’t be reached for comment.

India is the first market outside the US and Europe where Amazon is launching its dedicated air cargo operation, which will help it create an overnight delivery network of its own here as well. The Seattle-based company launched Prime Air in the US in 2016 and operates out of airports close to its warehouses.

Globally, the fleet comprises 91 aircraft, including small Boeing 737s, midsize 767s and ATRs. All of these are leased from and operated by third parties. In Europe, the ASL group manages Amazon’s air cargo operations.

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QuikJet was started in 2007 by IL&FS, Tata Capital and IDFC, but had to ground operations in 2013 amid high oil price. Last year, Guzder and ASL joined hands to revive it.“Having Amazon as a dedicated customer will make the QuikJet model successful this time as it will completely eliminate its dependence on freight forwarders and have certainty on revenue,” a person aware of the planning said.

In India, one of Amazon’s biggest markets outside the US, the company has a large base of ‘Prime’ customers, according to a report by brokerage firm Bernstein. Amazon provides same-day or next-day deliveries to Prime customers.

The company feels logistics expansion is critical as it seeks to speed up deliveries and make the process more cost effective, people briefed on the plan said.

“While Amazon has been using the belly space of airlines like IndiGo, SpiceJet, it felt that it needed more control over its air cargo network because the number of Prime customers has been growing significantly in India,” the person cited earlier said. “A dedicated cargo airline gives the company control to move its objects from its warehouse to nearby smaller cities overnight.”

India will also cater as a hub for other countries in Southeast Asia, he added.

The US ecommerce giant’s local shipping services arm, Amazon Transportation, which houses the logistics business, is planning to open its logistics infrastructure operations in India for non-Amazon orders to various online businesses, ET had reported.

Indian airlines are increasing their cargo capacity, with the dedicated freighter fleet increasing from just five aircraft before Covid to 28 now. IndiGo, SpiceJet, Air India Express and Bluedart are also looking to induct more aircraft for carrying cargo.