Home Markets Amazon Air cargo service launches in India, even as the company cuts costs

Amazon Air cargo service launches in India, even as the company cuts costs

by SuperiorInvest

A wide-body plane emblazoned with the Amazon Prime logo lands at Lehigh Valley International Airport in Allentown, Pennsylvania, U.S. December 20, 2016. File photo taken December 20, 2016. This corresponds to Insight AMAZON.COM-SHIPPING/ REUTERS/Mark Makela

REUTERS/Mark Makela

Amazon on Monday he announced is moving its air cargo operations to India, marking new growth for the company’s logistics arm even as it seeks to cut costs in other divisions.

The e-tailer uses two Boeing 737-800 aircraft operated by Quikjet Cargo Airlines to transport cargo between Hyderabad, Bengaluru, Delhi and Mumbai. Amazon Air will enable the company to offer faster deliveries to customers in India, Sarah Rhoads, vice president of Amazon Global Air, said in a statement.

The launch of Amazon Air in India comes as Amazon CEO Andy Jassy undergoing extensive revision the company’s costs as it looks down on a deteriorating economic outlook and slowing retail sales. Last week, Amazon the final phase has begun of the biggest layoffs in its 28-year history, expected to result in 18,000 workers being laid off. Jassy has sought to cut costs in other ways, including instituting a hiring freeze across Amazon’s corporate workforce, discussion of some projects and suspension of warehouse expansion.

Although they are trying to cut expenses, Jassy he said earlier the company intends to pursue long-term opportunities and continue to invest in its stores, advertising and cloud computing, among others.

Amazon Air, which debuted in 2016, outsources operations to several airlines. The service allows Amazon to have more control over the speed and cost of deliveries, which the company has been trying to accelerate from two days to one and the same day in more parts of the US.

Amazon Air launched in the US, then expanded to Europe. India is Amazon Air’s third market and first operation in Asia.

Amazon has been working on this for years increase its presence in Indiawhich is poised to become one of the fastest growing e-commerce markets in the world.

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