Amazon unveils first cargo delivery jet

Seattle-based Amazon is unveiling its first branded cargo plane, one of 40 jetliners that will make up the e-commerce giant’s own air transportation network as it takes more control of its delivery process.

The latest push to speed delivery of its products comes as the company ships an increasing number of packages worldwide. Amazon’s parcel volume was an estimated one billion packages in 2015 — the same number that FedEx delivered three years earlier for hundreds of thousands of customers.

Amazon has had issues with the reliability of air freight services. In 2013, it offered refunds to customers who got their Christmas orders late after bad weather and a jump in online shopping caused delays for UPS and FedEx.

Analysts say it makes sense for Amazon to use an air fleet it controls as another way to get its products to online shoppers drawn to fast, noextra-cost delivery.

“They’re such a big online retailer,” said Satish Jindel, president of shipping consultant ShipMatrix. “There’s so much volume that if you have to add transportation for yourself, why would you pay a retail price when you can get wholesale? It makes sense.”

Amazon leased 40 Boeing jets from Atlas Air Worldwide Holdings and Air Transport Services Group Inc., which will operate the air cargo network. Eleven of the planes already are delivering packages for Amazon’s annual Prime loyalty program, which offers free two-day shipping and other perks. The remaining freighters will be rolled out in the next couple of years.

Despite its growing fleet of aircraft, Amazon said it plans to continue to use FedEx, UPS and other partners.