Amazon Finally Opens Massive $1.5 Billion Air Hub

  • Oops!
    Something went wrong.
    Please try again later.
Georgina Tzanetos
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
alexfan32 / Shutterstock.com
alexfan32 / Shutterstock.com

About two years ago, then CEO Jeff Bezos broke ground on the northern Kentucky/ Ohio Amazon air hub, and on Wednesday the base was officially opened. The air hub in northern Kentucky will help accelerate faster delivery of Amazon and Amazon Prime products.

Amazon Air first launched in 2016, with its routes flown by several different contracted carriers. Planes are a crucial part of the logistics network that ensures the second-and-same day delivery options of Amazon Prime. These delivery windows are one of Amazon’s most competitive advantages over other online retailers, and the new air hub will only add to its already sprawling network.

See: Costco, Amazon and 16 Other Companies That Raised Their Minimum Wage to $15 (or More)
Get What You Want: 23 Secret Ways To Save Money on Amazon

Amazon Air currently operates out of more than 40 airports in the United States, but the new hub at the Cincinnati/Northern Kentucky International Airport will serve as the central base of the nationwide cargo network. Amazon Air also expanded internationally, opening a 20,000 soiree meter air hub in Germany last year.

Analysts have been eagerly awaiting the hub’s launch because of its potential to significantly speed up deliveries, CNBC reports. This move will help Amazon catch up to carriers like UPS and FedEx, and will have the capacity for 100 Amazon-branded planes and handle an estimated 200 flights per day. Investors have also questioned whether or not Amazon will offer its air cargo services to other companies as a way of bringing in new revenue streams, as CNBC adds.

Read: The 37 Mistakes We Make When Shopping at Costco, Amazon, Target and Walmart
Good To Know: 25 Biggest Companies You’ve Never Heard Of

Up until this year, Amazon did not own any aircraft outright. Instead, the company chartered out aircraft services through different operators. In January of 2021 though, Amazon purchased 11 used Boeing 767-300 jets from Delta and WestJet, taking advantage of revenue-stricken airlines offering a discount during the pandemic.

The expanded network comes amidst news of New York Democratic mayoral candidate Eric Adams’ openness to building stronger ties with Amazon to create a presence in the city after a deal for a Queens headquarters was rejected in 2019. City legislators at the time were against the tech giant coming into the city, but now as other cities are starting to benefit from Amazon’s presence, future legislators might change their minds.

More From GOBankingRates

Last updated: Aug. 13, 2021

This article originally appeared on GOBankingRates.com: Amazon Finally Opens Massive $1.5 Billion Air Hub

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting

Recommended Stories

  • Like Discounts? These 5 Game-Changing Stocks Are 35% (or More) Below Their 52-Week Highs

    One company on the leading edge of innovation in the healthcare space that's been more than cut in half is telehealth services giant Teladoc Health (NYSE: TDOC). Wall Street also hasn't been thrilled with Teladoc's wider-than-anticipated losses following its acquisition of applied health-signals company Livongo Health. While there's no doubt we could witness some operating turbulence in 2021, Teladoc's platform is the unquestioned wave of the future in personalized care.

  • Twitter locks account of India's largest opposition party

    Twitter has locked the account of Indian National Congress, the South Asian nation's largest opposition party, for violating its rules. Indian National Congress wrote about the Twitter episode on Facebook Thursday. Rohan Gupta, the head of social media for Congress, alleged that Twitter had taken the step at the direction of the ruling Bharatiya Janata Party, adding that the firm had also suspended profiles of several of the party's senior leaders.

  • Buy This Top Cathie Wood Stock Before It Breaks Higher

    This cloud stock is the ninth-largest holding in Wood's ARK Innovation ETF, and it recently became an attractive buy.

  • This MacBook Pro is $500 off for students at Best Buy right now

    MacBook models are on sale at Best Buy right now, and you can save on top-rated models—and get even further discounts with student pricing.

  • Former KU forward Collison promoted by Oklahoma City Thunder; Vaughn stays with Nets

    Nick Collison, 40, played for one NBA team for 14 years and now is entering his third year in the front office of that same team.

  • India's Bharat Biotech's nasal COVID-19 vaccine advances into next stage of trials

    BENGALURU (Reuters) -Indian vaccine maker Bharat Biotech's nasal COVID-19 vaccine candidate has received regulatory approval for mid- to late-stage trials, the government's ministry of science and technology said in a statement https://bit.ly/3xTVHuh on Friday. Early stage trials of the vaccine candidate, BBV154, has been completed in subjects aged 18 to 60 years, and the doses were found to be well tolerated, the statement said. "Bharat Biotech's BBV154 Covid Vaccine is the first intranasal vaccine being developed in the country entering into late-stage clinical trials," said Renu Swarup, chairperson of the Biotechnology Industry Research Assistance Council.

  • Belarus denies entry to US ambassador, cuts US Embassy staff

    Belarus on Wednesday rescinded its permission for the U.S. ambassador's appointment and told the U.S. to cut its embassy staff in retaliation for Washington’s sanctions. President Joe Biden's administration slapped Belarus with new sanctions Monday, the anniversary of last year's election in Belarus that was denounced by the opposition as rigged. Authoritarian President Alexander Lukashenko responded to protests against his re-election to a sixth term with a sweeping crackdown that saw more than 35,000 people arrested and thousands beaten by police.

  • 'My skin is nearly perfect!': This fan-favorite vitamin C serum is just $11 at Amazon

    Tighter, brighter skin can be yours!

  • Bebe Rexha, 31, Is Almost Unrecognizable In A New No-Makeup Selfie

    "YOU LOOK INCREDIBLE," one fan wrote.

  • Non-Rich People Are Sharing Clever Ways To Save Money, And They're Genius

    We could all use these...View Entire Post ›

  • Student loans: FOIA data reveals tons of 'underwater borrowers' ahead of repayment cliff

    Federal data reveals that despite the interest-free payment pause allowing borrowers to find some breathing room during the pandemic, two-thirds of nearly 430,000 student loan borrowers were still "underwater" — meaning that they still haven't been able to make a dent on their original balance.

  • This Stock Could Be Headed for a Crash

    Let's face it... the stock market hasn't been normal -- whatever that means -- in a while. Even before the pandemic, the price-to-sales (P/S) ratio of the average stock on the S&P 500 index was 2.

  • 2 Big Dividend Stocks Yielding 7%; Analysts Say ‘Buy’

    They used to say that investors should ‘sell in May and go away.’ It was a reference to a historical pattern, long noticed by investors, that markets frequently swooned in the summer months. From May until October, on average, the S&P 500 has registered an average drop of 1.7%. While this loss is usually subsumed by larger full-year trends, it does affect shorter-term investment decisions. LPL Financial’s chief market strategist Ryan Detrick, however, believes that we’re in for a deeper loss thi

  • If you own an S&P 500 fund, you might want to consider replacing it with this better-performing dividend-stock fund

    The First Trust Rising Dividend Achievers ETF selects quality dividend stocks while spreading risk evenly.

  • 3 Top Cannabis Stocks That Won't Stop Growing

    Some marijuana companies exploded onto the scene before quickly fading. These three pot stocks seem unstoppable.

  • Time to Buy the Dip on This Crucial Tech Company

    Across the megatrends of 5G, cloud computing, autonomous vehicles, and others, the common denominator is the requirement for components made of advanced engineered materials. Furthermore, the industry is consolidating, with II-VI being a leader on that front, currently waiting for final approval of its acquisition of Coherent (NASDAQ: COHR). Already down some 30% from all-time highs, II-VI fell another 4% after reporting earnings on Tuesday, Aug. 10.

  • 2 Tech Stocks With 96% to 140% Upside, According to Wall Street

    As a long-term investor, I tend to ignore near-term price targets. Instead, I look for stocks I can hold for at least five years, and preferably longer if my investment thesis remains intact. That being said, price targets can be a good place to find inspiration, and there's no harm in glancing at these figures -- provided you do your own research, too.

  • Why I'm Not Doing a Thing to Prepare for the Next Stock Market Crash

    Is anyone else tired of stock market crash warnings? During a stock market crash, there's really only one way to lose money -- sell off investments when they're down. Thankfully, I've worked hard to build up an emergency fund with enough money to cover about a year's worth of bills.

  • Zillow July 2021-July 2022 Home Value and Sales Forecast

    Zillow expects home values to grow 12.1% between July 2021 and July 2022, and to end 2021 up 20.3% from December 2020. The post Zillow July 2021-July 2022 Home Value and Sales Forecast appeared first on Zillow Research.

  • A Peek Into Warren Buffett’s Second-Quarter Stock Moves

    Berkshire Hathaway was a net seller of just over $1 billion of stocks in the period, following almost $4 billion of net sales in the first quarter.