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Amazon pilots numberlys4/20/2023 Read more: An Amazon Air plane crashed in February, killing all 3 people on board. Their two contract airlines, ATSG and Atlas Air Worldwide Holdings, pay pilots a third less than FedEx or UPS. Rather than directly employing pilots and buying planes, Amazon is contracting pilots and leasing cargo planes. Still, cutting costs is exactly what Amazon Air is setting out to do, according to supply chain analysts and interviews with more than a dozen pilots who work with Amazon Air. "Cutting costs in aviation causes deaths and accidents." "I am concerned anytime that new entrants into aviation particularly carrying packages or goods enter a market where their background has been essentially trying to cut costs to make money," Jim Hall, who led the National Transportation Safety Board (NTSB) from 1994 to 2001, told Business Insider, referring specifically to Amazon. Now it's using the same playbook in logistics.īut Jim Hall, who led the National Transportation Safety Board (NTSB) from 1994 to 2001, said Bezos's classic model of keeping it cheap and scaling doesn't quite work for the air industry. Read more: Amazon took over the $176 billion market for cloud computing. "When it comes to residential delivery, when it comes to contract commercial logistics, Amazon not only knows it can enter those categories, but they scale those categories and do a better job than UPS and FedEx can." "Amazon will only enter a category or acquire a business that they know they can scale," former Amazon executive Brittain Ladd, now an independent supply chain consultant, told Business Insider. Earlier this year, Amazon declared itself a transportation company in its most recent SEC filing and is rolling out a third-party shipping service for merchants on its site. He's also looking to launch a third-party logistics service that many analysts say is poised to edge out FedEx and UPS. Pilots who fly for them say their contract airlines might not have the staffing for that. Meanwhile, Amazon is looking to operate 10 more planes by the end of 2020.Atlas Air, another contractor, said hired 57 fewer pilots than it needed to keep up with business demands. ABX Air, one contractor, lost more pilots than it hired in 2018, according to union labor numbers.But, analysts said that the low pay at Amazon Air's contractors is a key reason Jeff Bezos' air venture can stay profitable.Those pilots and transportation analysts said the rapid growth of Amazon Air, coupled with low pay, has led to inexperienced pilots in the cockpit and a lack of qualified applicants.Business Insider spoke with 13 pilots who work or have worked for Air Transport Services Group and Atlas Air Worldwide, where they fly or have flown planes for Amazon Air.
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