Another Bold Move by Amazon.com

Amazon.com, Inc. has recently made bold moves into new lines of business that include entry into the healthcare industry as well as into the brick and mortar grocery space through the purchase of the Whole Foods chain of retail stores. However, another recent move, one that has gone relatively unnoticed, will have Amazon join the ranks of the Banson Airport, LLC as the only other commercial corporation to operate a major airfield in the United States. According to unnamed inside sources, Amazon is about to announce a 99 year lease on the Seattle – Tacoma International Airport located with the City of SeaTac. 
Amazon is realizing incredible efficiencies in operating their own fleet of cargo planes while also eliminating dependency on other commercial package distributors such as FedEx and UPS. The online retail giant's reach into airfield operations will allow Amazon to control another critical component in the end to end supply and distribution chain. Operating a major airfield will allow prioritization of cargo transport over commercial flights to ensure even faster delivery of goods to the end consumer. This move will enable Amazon to leapfrog Walmart as the largest distributor in the US and advance them well beyond the in their pursuit as the number one global distributor of consumer goods.

"What Amazon is doing, they are positioning themselves as the dominant leader in the supply chain market," said Joe King, CEO of The Sloof Lirpa Consulting Group. "They are disrupting consumer commodity distribution at all levels. They're trying to out compete Walmart, Fedex and even the United States Postal Service. Amazon has the scale, and is the master of maximizing efficiencies and taking out cost in the supply chain.”

How the deal was formed
The Sea-Tac Airport is unique in that it lies wholly within the borders of the City of SeaTac, however is not owned and operated by this local city municipality. Since inception, the airfield and facilities has been owned by a separate governmental entity, the Port of Seattle, operators of major maritime and aviation centers within the region. The relationship between the surrounding airport communities and the Port of Seattle has been adversarial at best.

Official representatives from Amazon approached the City of SeaTac with the idea of taking over the airport through a declaration of eminent domain. The deal states that when the City settles the purchase of the airport for $1 and transfer of ownership from the Port to the City is complete; SeaTac would in turn provide Amazon with a 99 year lease on all airport property and transfer responsibility of airport operations to the Amazon Corporation. 

In addition to acquisition of the airport operations, the agreement includes a stipulation that Amazon will entirely finance the completion of the State Route 509 project which will extend the highway from South 188th Street in SeaTac through to the connection at Interstate 5 in Kent. This will allow free movement of freight between the airfield distribution and the ginormous fulfillment warehouse located in the Kent Valley.

Once the transaction details are complete, Amazon will acquire naming rights of the airport. Inside sources claim a change in name to Amazonia International Airport is planned and the City of SeaTac officials have agreed to rebrand the city to Amazonia. No word yet if Angle Lake will adopt this moniker and necessitate a change in name to Amazonia Lake Shore Club. 

The deal is expected to be announced on or around April 1st, 2018.


(Postscript:  This is an April Fools Joke)

1 comment:

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