“We think the market is missing the risk Amazon Air poses to UPS/FDX growth,” say researchers at Morgan Stanley. “Our work with AlphaWise shapes our analysis of AMZN Air’s impact to date and plots a potential expansion course. Lowering PTs for UPS and FDX and quantifying AMZN savings.”
Morgan Stanley notes that, for now, investors are focusing on Amazon’s last-mile efforts, but the Manhattan-based multinational bank and financial services concern believes the Amazon Air challenge is just as relevant.
“We’ve written extensively on Amazon’s build-out of its internal logistics network, but given Amazon’s plans to take delivery of 40 planes and build an air hub that could potentially handle 100 planes, we’ve taken a closer look at the impact of Amazon Air (its in-house Express Air network) on UPS/FedEx Air volumes,” state the researchers, who point to their own interactive online map.
Learn more at morganstanley.com.