World’s biggest e-commerce company, Amazon, will launch its Amazon Prime Air cargo fleet in India. India is one of the largest e-commerce growing markets in the world. And Amazon is already present in India and has the largest market share.
Telangana IT minister KT Rama Rao (KTR) formally launched Amazon’s Prime Air at the Rajiv Gandhi International Airport (RGIA), Hyderabad. “Amazon is working with Telangana’s Handlooms department and helping 4500 weavers in 56 villages across the state,” remarked Mr. Rao.
Air traffic tremendously increased at Hyderabad airport (RGIA) and is expected to increase up to 40 million by 2028. Amazon launched Prime Air in 2016 in the USA. India, with a staggering population of 1.417 billion, is one of the key overseas markets for Amazon. This is the first time Prime Air is set to launch outside the USA. It is expected that it will start large-scale operations by the end of this year. Hyderabad, one of the largest IT hubs of India, will be hosting the launch of Prime Air.
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At present, Amazon Prime Air has 91 cargo aircraft in its fleet, which includes Boeing 737s, 767s, and ATRs, and plans to increase more as it is expanding its operations in India.
Due to Prime Air’s launch the cargo logistics of India will improve and become faster than before. It will help Amazon to decrease delivery time and improve its services.
Amazon Prime Air collaborated with a Bengaluru-based cargo airline startup Quikjet (founded in 2007) to enable its operations with a fleet of two Boeing 737-800s and plans to increase it by six by the end of 2023. The Boeing 737-800s are very popular globally among air cargo airlines due to low maintenance and high performance, the plane has a maximum cargo capacity of 23,000 kg and range and has a design range of 2 nautical miles. Quickjet was founded in 2007 as a neutral cargo airline to meet the growing demand for India’s air cargo.
The launch of Prime Air will bring a lot of foreign investment to India. In addition to this investment, Amazon has invested Rs400 crore in Amazon Transportation Services, as reported by the Economic Times.
The revenues of Amazon Transportation Services in FY22 is Rs 4,581 crore, which is an increase of 12% compared to Rs 4,068 in FY21.