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Amazon expands air cargo service to India whilst company cuts costs

An Amazon Prime-branded widebody plane lands at Lehigh Valley International Airport in Allentown, Pennsylvania, U.S., Dec. 20, 2016. Photo taken Dec. 20, 2016. Matches Insight AMAZON.COM-SHIPPING/REUTERS/Mark Makela

REUTERS/Marek Makela

Amazon on Monday announced is moving its airfreight operations to India, marking recent growth for the corporate’s logistics division while attempting to cut costs in other divisions.

The online retailer uses two Boeing A 737-800 aircraft operated by Quikjet Cargo Airlines to send parcels between Hyderabad, Bengaluru, Delhi and Mumbai. Amazon Air will enable the corporate to supply faster deliveries to customers in India, Sarah Rhoads, vice chairman of Amazon Global Air, said in a press release.

The launch of Amazon Air in India comes as Amazon CEO Andy Jassy undergoes a sweeping review of the corporate’s spending because it faces a deteriorating economic outlook and slowing retail sales. Last week, Amazon began the ultimate phase of the most important layoffs in its 28-year history, expected to put off 18,000 employees. Jassy has tried to chop costs in other ways, including freezing Amazon’s corporate workforce, putting some projects on hold and halting warehouse expansion.

Even when she desires to cut expenses, Jassy he said earlier the corporate intends to proceed to pursue long-term opportunities and proceed to take a position in its stores, promoting and cloud computing corporations, amongst others.

Amazon Air, which debuted in 2016, outsources operations to several airlines. The service allows Amazon more control over delivery speeds and costs, which the corporate has been working to hurry up from two days to 1 and the identical day in additional parts of the US

Amazon Air launched within the US after which expanded into Europe. India is Amazon Air’s third market and first operation in Asia.

Amazon has been working for years to extend its presence in India, which has a probability to turn into certainly one of the fastest growing e-commerce markets on the earth.

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