Amazon is now looking at an unlikely partner for helping it expand the business of package delivery business. This time it is a package delivery business which is a low cost airline.
Sun County Airlines which is a Minneapolis based small leisure carrier is going to start its flight with a fleet of 10 aircrafts in 2020’s second quarter which is the part of Amazon’s plan that had been announced earlier in the year for the expansion of Amazon Air with leased planes that are single-aisle as per the company on late Tuesday.
Amazon has grown their unit of Amazon Air and it currently is counting on the cargo airlines ATSG and Atlas Air for flying their packages. Amazon has the ownership of warrants for buying their minority stakes in both of the companies and has brought more of the in-house logistics. In the month of June, FedEx has said that it is not going to provide the express shipping for the company.
Sun Country is owned by Apollo Global Management which is a private equity firm and is going to use this business for helping them level the seasonality of leisure flying off. This surges in the first quarter as per the CEO Jude Bricker when those who vacation head southwards.
The core challenges as per Bricker are the fluctuations seasonally which hamper the business’s growth further adding that the demand is going to reach its peak in the last quarter for Amazon just before the peak demand period for the airlines.
The deal had come together in the previous week but Bricker has said that he had first approached the retailer one year ago for trying to sell a used plane to the company.