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Amazon's hub at N Kentucky Airport is 'base for future growth'

  09.02.2017    

Amazon's chief financial officer Brian Olsavsky says its planned centralised air cargo hub at Cincinnati/Northern Kentucky Airport (CVG) that is estimated to cost US$1.5 billion and will create 2,000 new jobs will act as a "base for future growth".
The e-commerce giant's eventual fleet of 40 aircraft, through a partnership with ATSG and Atlas Air, will be based at the hub and are expected to perform 200 flights daily.
Speaking shortly after announcing the company's fourth quarter results, Mr Olsavsky explained why the company was investing in the new hub, reported London's Air Cargo News.
"What it does for us is it gives us a base for future growth," Mr Olsavsky said. "It's all about supplementing our existing capacity - both our partners and ourselves - and essentially building capacity that can handle our top line growth and also the growth in Amazon Fulfilled Network units which as I just mentioned is even higher than our paid unit growth.
"It's the same as some of the investments you saw in airplanes last year, our partnerships with companies that do air cargo.
"This is about supplying the needs of our customers and our sellers. We value the partnership with the external providers as well and I think we're all dealing with the problem of having lots of incremental volume (growth) year over year."
Amazon is currently using Wilmington as a centre of operations for its air cargo network, however, it has a much larger presence in Kentucky, with 11 fulfilment centres in the state, five of which are located close to the airport in nearby Florence and Hebron. It also has two centres in Ohio both located more than a 60-mile drive from Wilmington.
The Wall Street Journal pointed out that DHL, which provides air capacity to Amazon, uses the Cincinnati/Northern Kentucky airport as its hub and this could facilitate an expansion of their partnership. DHL itself made the same switch between the two airports in 2009.
Amazon's fourth-quarter revenues rose 22 per cent in 2016 against the previous year to US$43.7 billion, while net income was up 13 per cent to $1.3 billion.



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