Amazon Bids For German Airport As Freight Ambitions Continue

Summary

  • Amazon reported to be one of 3 bidders for Frankfurt - Hahn Airport.
  • Location is ideal and would allow Amazon to easily link all European warehouses overnight.
  • Improving the European logistics business could improve Amazon's offerings in some markets.

Img 1: Frankfurt Hahn Airport

While much of the media was focused on the Amazon (NASDAQ:NASDAQ:AMZN) airline operation in the United States over Christmas, Amazon was quietly running a similar operation in Europe, linking Poland, Germany and the UK with a Boeing 737 freighter.

As Amazon tries to move deeper into the freight industry in Europe in addition to the United States it has been reported that Amazon is one of three bidders for the Frankfurt Hahn Airport, in Germany.

Frankfurt - Hahn Airport

The facility in Hahn, Germany, just outside of Frankfurt is positioned ideally for an Amazon airline to connect all of Europe. Ownership of the airport would give Amazon in Europe, what it has got in the United States with its air operation in Wilmington, Ohio, at the former DHL facility.

The Hahn airport, which hosts several low cost airlines along with a few cargo airlines is currently loss making, with ownership having previously changed in 2009 when owner Fraport sold 65% of the facility for a symbolic €1 including €120 million in debt. This debt has increased since the previous deal and Amazon would likely have to take it on in any buyout. Airlines have cut service to the facility and cargo, which is a large focus of the airport has fallen 28% at the airport in recent years leading the owners of the airport to try and sell it.

FedEx (NYSE:FDX), UPS (NYSE:UPS), and DHL (OTCPK:DPSTF) all run large air cargo operations in Germany due to its status as Europe's largest economy and also due to its ideal geographic location, positioned almost in the center of Europe.

Img 2: Boeing 737-300F Range From Hahn Airport

The green circle shows the operating range from Hahn of a Boeing 737-300 freighter, the Boeing 737 freighter aircraft with the

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