The company currently has a fleet of 40 cargo planes which have been named under the name of Amazon Prime Air and are helping the company in its transportation needs.
"As part of the agreement, Atlas Air Worldwide Holdings Inc. will acquire and operate 20 Boeing Co. 767-300 freighters for Amazon" the company said in a statement.
In March last year, the company had a transaction with Air Transport Services Group Inc. and would double Amazon's cargo-hauling fleet to 40 Boeing 767 freighters.
Analysts have reportedly said that having its own fleet will be extremely beneficial for the company which has in past struggled with keeping up with the demand at the time of holidays.
However the company has clarified that it is not looking towards replacing its delivery partners. Amazon Chief Financial Officer Brian Olsavsky, reportedly said that Amazon was looking to supplement, not replace, the capacity of its delivery partners.
By having more control over its transportation, logistics, air cargo and transportation related operations, Amazon is focusing on the future of e-commerce aligned with its plans of rapid expansion through Prime and Prime Now.
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