In economics , a virtual airline is an airline that has outsourced as many possible operational and business functions as it can, but still maintains effective control of its core business. Such an airline focuses on operating a network of air services, and outsourcing non-core activities to other organizations. Contracting out services within the aviation industry has reportedly become so common that many carriers could be classed as having features of a virtual airline, although it is arguable whether any current carriers meet a strict definition of the term.
18-511: Amazon Air (often branded as Prime Air ) is a virtual cargo airline operating exclusively to transport Amazon packages. In 2017, it changed its name from Amazon Prime Air to Amazon Air to differentiate themselves from their Amazon Prime Air autonomous drone delivery service. However, the Prime Air logo remains on the aircraft. Until January 2021, the airline had relied on wet-leasing its aircraft from other operators, but going forward it
36-484: A 920-acre (370 ha) facility with a 3 × 10 ^ sq ft (69-acre; 28 ha) sorting facility and parking space for over 100 cargo aircraft; the project is estimated to cost $ 1.5 billion. In December 2017 the company, which was named Amazon Prime Air, announced its rebranding as Amazon Air to avoid confusion with the Amazon Prime Air drone delivery service, although it continues to operate under
54-621: A local Amazon Logistics Delivery Station for last mile delivery or to a local post office for delivery by the United States Postal Service . Some Amazon Air packages bypass the regional Amazon Sortation Centers completely and are routed directly to local Amazon Delivery Stations for last mile delivery by Amazon Logistics. Amazon Air flies scheduled flights to the following destinations: Amazon Air uses Boeing 737 , Boeing 767 and Airbus A330 aircraft, all of which are operated by contracted partners. As of February 2024,
72-651: A minority stake in Air Transport Services Group, the parent company of Amazon Air sub-lessor Air Transport International . The deal was valued at $ 131 million for 13.5 million shares in the company. Amazon also holds warrants to acquire a minority stake in Atlas Air Worldwide Holdings , the parent company of Atlas Air . In September 2022, a study conducted by the Chaddick Institute found that Amazon Air had
90-454: A new regional air hub at Fort Worth Alliance Airport (KAFW) and does not airlift third-party packages. The new regional hub began operating on October 2, 2019. For 2019 and 2020, Amazon committed to leasing 10 additional 767-300 aircraft from Air Transport Services Group , which would bring active aircraft to a total of 50. Phase one of the CVG sort facility, encompassing 440 acres (180 ha)
108-623: A regulatory standpoint, the aircraft may display the virtual airline's livery , and may be owned or leased by that company. Virtual airlines originated in the United States following the drastic changes brought about by the Airline Deregulation Act of 1978 . During the hyper-competitive years immediately following deregulation, major airlines found it increasingly unprofitable to compete against start-up carriers on many routes they currently served. Instead of forfeiting
126-426: A system expansion of 5.8% without adding more warehouses. The study also showed that in the same year, the carry capacity had increased, making it 14% and 23% as large as FedEx and UPS, respectively. In October 2022, Amazon announced the lease of ten Airbus A330-300P2F freighters from Altavair , and would be operated by Hawaiian Airlines . These aircraft are being converted to freighters by Elbe Flugzeugwerke , and
144-1026: Is an airline holding company based in Purchase, New York . The group owns Atlas Air , Polar Air Cargo , and has a freighter aircraft leasing joint venture with Bain Capital : Titan Aircraft Investments. The company was named after Atlas , a figure in Greek mythology, who carries the sky on his shoulders. The company was listed on Nasdaq until 2023 when it was taken private by a group of investors led by Apollo Global Management . Atlas Air Worldwide Holdings owns Atlas Air , Polar Air Cargo , and Titan Aircraft Investments. The company headquarters are in Purchase, New York. Atlas Air operates flights on an ACMI ( Aircraft, Crew, Maintenance and Insurance ), CMI and air charter basis for airlines, express operators, freight forwarders , charter brokers, global shippers and
162-822: Is looking to directly own some aircraft. On the planes the airline owns, the airline will still rely on others for CMI (crew, maintenance, and insurance) leases. In late 2015, Amazon began trial cargo runs out of Wilmington Air Park under the code name Project Aerosmith. In December 2015, Amazon announced that it would begin its own cargo airline to expand its capability. In March 2016, Amazon acquired options to buy up to 19.9 percent of Air Transport Services Group 's (ATSG) stock and began scheduled operations with 20 Boeing 767 aircraft. On January 31, 2017, Amazon announced that Amazon Air would make Cincinnati/Northern Kentucky International Airport (KCVG) its principal hub, and began operations on April 30, 2017. Amazon received $ 40 million in tax incentives and plans to begin construction on
180-667: The callsign "Prime Air". As of June 2018, Amazon Air had 20 of its 33 cargo planes based at the Cincinnati/Northern Kentucky International Airport (KCVG), with the rest flying point-to-point transit routes across the United States. Amazon Air was to move into office space at the former Comair headquarters by March 2018. Amazon leased 10 additional Boeing 767-300 planes from ATSG in December 2018. Amazon has completed
198-557: The Amazon Air fleet consists of the following aircraft. [REDACTED] Media related to Amazon Air at Wikimedia Commons Virtual airline (economics) The term is often used to describe travel companies and ticket agencies that market themselves as airlines, but do not possess an air operator's certificate and contract with one or more certificated operators to fly and maintain aircraft, often under an air charter or wet lease arrangement. Although operated by others from
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#1732775352642216-694: The U.S. Military, along with dry-leasing freighter aircraft. Atlas Air has global operations established in Africa, Asia, the Pacific, Europe, the Middle East, North America, and South America. Titan Aircraft Investments is an aircraft dry-leasing company. Titan owns 29 aircraft in its dry-leasing fleet. The dry-leasing fleet consists of seven Boeing 777 freighters, twenty-one Boeing 767 freighters (leased to parent Atlas Air), and one Boeing 737-300 freighter. As of December 2021 , Atlas Air operates
234-411: The cargo space of other passenger airlines. The primary function of Amazon Air is to transport Amazon packages from distant fulfillment centers that are outside of Amazon's local ground linehaul network for a specific area. Once the buyer's order is flown from the distant fulfillment center to the buyer's region, the package may be transported to the regional Amazon Sortation Center to be routed either to
252-516: The first aircraft the company will own rather than lease. The four 767-300 aircraft were previously under the ownership of WestJet , who purchased them from Qantas in 2015. In January 2021, with passenger air traffic severely depressed and cargo traffic higher due to the COVID-19 pandemic , Amazon announced it had completed the purchase of 11 Boeing 767-300s from Delta Air Lines and WestJet. In March 2021, Amazon exercised its warrants to acquire
270-499: The first of these aircraft is expected to join the fleet in late 2023. In January 2023, Amazon launched Amazon Prime Air in India in partnership with QuikJet . The service will use two branded Boeing 737-800 freighters to deliver goods in four metro cities: Delhi , Mumbai , Hyderabad , and Bengaluru . The company plans to increase the number of dedicated freighters in India to six by the end of 2023, and will also continue to utilize
288-421: The mainline hubs as a feeder operation rather than operate on their own. [REDACTED] Media related to Virtual airlines (economics) at Wikimedia Commons This business term article is a stub . You can help Misplaced Pages by expanding it . This aviation -related article is a stub . You can help Misplaced Pages by expanding it . Atlas Air Worldwide Holdings Atlas Air Worldwide Holdings, Inc.
306-413: The routes entirely, the larger carriers often made marketing arrangements with smaller airlines to fly under the "banner", or livery, of the larger airline. These regional airlines , mimicking the well known major airlines in adverts and purporting to make connections as seamless as possible, soon abandoned their own local service routes. In most cases, the regional airlines found it more profitable to serve
324-733: Was completed in 2020, while the remaining 479 acres (194 ha) will be developed by 2025–2027 during phase two. Amazon eventually plans to have over 100 aircraft based at CVG with over 200 daily flights and 15,000 employees. In March 2020, Amazon Air reserved the ICAO airline designator "MZN" and "AMAZON" call sign . Both designations were cancelled in March 2021. In July 2020, Amazon Air had secured up to six million gallons of sustainable aviation fuel (SAF) supplied by Shell Aviation and produced by World Energy. In September 2020, Amazon committed to buy four aircraft under their own operations. These are
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