Amazon launches European air hub at Leipzig Airport

Amazon has started its own air cargo operations in Europe with the launch of an air hub in Germany as it invests heavily in logistics around the world.

Following months of media speculation, the e-commerce giant has officially announced the start of Amazon Air operations at its regional air hub at Leipzig/Halle airport this month. Some 200 people are employed at the 20,000 sqm facility, which lies next to the airport’s World Cargo Center. No investment figure for the new building has been revealed.  

Amazon explained that the new cargo facility “will create an additional connection within Amazon’s fulfilment network in Europe, bringing greater selection and more flexible delivery options at a lower price to Prime members”.

The company said it has leased two branded Boeing 737-800 aircraft from GECAS that will be operated by Irish cargo airline group ASL Airlines “on behalf of Amazon Air in Europe”.

Amazon did not disclose the flight routings for these two planes and only said: “The site (Leipzig) has already started to support customer deliveries with two daily flights.”

Hub manager Dietmar Jüngling said: “We appreciate all the support of the community in embracing these operations and the long-term economic impact and job creation opportunities we will bring to the region.

“We have been hard at work to build and train a team to build our air cargo network in the region while maintaining a safe working environment. Our objective is to ensure we are able to support the changing needs of customers during this challenging time and beyond.”

“Heavy investment”

Michael Kretschmer, Minister President of Saxony, welcomed Amazon’s latest investment in the German federal state. “It speaks clearly in favour of Saxony as a business location that Amazon continues to invest heavily in Leipzig and is opening its new freight centre here at the airport. This creates state-of-the-art jobs for a large number of skilled workers,” he said.

“I am sure that the Amazon Air regional hub will attract more innovative companies to the region to settle here. Companies and end customers benefit from strong, reliable supply chains. And how important these are has become particularly evident during the corona pandemic," he emphasised.

Goetz Ahmelmann, CEO of airport operator Mitteldeutsche Flughafen AG, commented: "We are delighted to have won another well-known logistics company for Leipzig/Halle Airport. Leipzig/Halle is clearly a very special hub in European freight traffic for Amazon Air. We have scored points in Central Germany with our exceptionally good infrastructure and our recognized expertise in air freight.

“Leipzig/Halle is already number two in the German airfreight business and number five in Europe. We will invest heavily to expand our position. This will benefit the region, but also the whole of Germany as a business location.”

Cargo volumes at Leipzig/Halle Airport, which is home to the European air hub of DHL Express and also served by various international cargo airlines, are growing strongly this year. Tonnage increased by nearly 19% year-on-year in September, leaving nine-month volumes up by just over 8%, according to the airport.

European logistics expansion

Amazon’s move to set up its own flight operations in Europe follows a massive logistics expansion across the continent in recent years. In Europe, the company has so far mostly contracted airlift capacity from ASL Airlines along with DHL’s Leipzig-based airline European Air Transport and other carriers on diverse routes connecting major markets.

The aviation expansion mirrors the company’s strategy in the USA where several sub-contracted airlines now operate nearly 70 Prime Air-branded freighters on an extensive network serving large and small airports. Next year Amazon will open a gigantic $1.5 billion hub at Cincinnati International Airport with space for up to 100 cargo planes.

Meanwhile, Amazon has continued to expand its European ground logistics network over the last few months. The company opened its sixth fulfilment centre in Italy, at Colleferro close to Rome, last month, following on from the opening of its fifth facilty, at Rovigo, south of Padua, in September. The two facilities combined represent a €140 million investment.

The company also recently opened its sixth and seventh fulfilment centres in Spain. Overall, the e-commerce giant now has about 40 large fulfilment centres across Europe along with numerous regional sorting centres and local delivery stations.