Air Freight Pilots’ Strike Risks Amazon’s $117B Logistics Revenue

December 5, 2023
Air Freight Pilots' Strike Risks Amazon's $117B Logistics Revenue

In a move that could disrupt Amazon’s extensive delivery network, pilots from Air Transport International (ATI), a crucial air freight provider for the tech giant, have voted to authorize a potential strike.

This development comes amid mounting concerns over low pay and an increase in turnover among ATI pilots, potentially impacting Amazon’s $117 billion logistics revenue.

Join our WhatsApp Channel

ATI, responsible for operating half of the US aircraft in service for Amazon, has seen dissatisfaction brewing among its 640 pilots over wage stagnation compared to industry standards.

This discontent has fueled support for a strike, which, if realized, could introduce disruptions to Amazon’s delivery operations.

READ ALSO: EU To Probe Jeff Bezos’s Amazon’s Consumer Protection Measures

The looming strike, supported by 98% of ATI’s pilot workforce, highlights a growing rift between the pilots’ union and Air Transport Services Group (ATSG), the parent company of ATI.

Federal law procedures, overseen by the National Mediation Board, will guide the strike’s trajectory, including a mandatory 30-day cooling-off period if an impasse is declared.

Amazon’s reliance on ATI’s air services is palpable, with 94% of the freight provider’s flying hours dedicated to fulfilling Amazon deliveries.

This dependency underscores the potential impact a strike might have on Amazon Air’s operations, which orchestrates over 330 daily flights in the US alone, facilitating transportation from fulfillment centers to airports.

ATI’s pilot attrition rate has soared, with over a third leaving this year alone, sparking concerns over diminishing service quality and wage discrepancies.

This discontent echoes a situation in 2016 when ABX Air pilots went on strike, albeit being deemed illegal by a judge, compelling the pilots to return to work swiftly.

As negotiations persist between the pilots’ union and ATI, the looming threat of a strike underscores the fragility of the relationship between the air freight provider and Amazon, heralding challenges for the tech giant’s expansive logistics network.

emmmmmm
+ posts

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

Emmanuel Ochayi

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

TELEMMGLPICT trans NvBQzQNjvBqpVlberWdEgFPZtcLiMQfydmClwgbjjulYfPTELibA
Previous Story

Premier League Announces New Record £6.7bn Broadcast Deal 

2024 Budget: Gov Makinde Presents N434.4bn As Education Gets Highest With 20.8%
Next Story

2024 Budget: Gov Makinde Presents N434.4bn, Education Gets Highest With 20.8%

Latest from Business

Market Analysis: Nigeria’s Q2 Growth Numbers In View

Sector details from today's GDP, especially the balance between services resilience and oil price variability, could shape positioning for the meeting, Daniel Wesonga, Pepperstone'sSenior Sales Manager, said in an exchange with Prime Business Africa Friday morning.
Recapitalisation: UBA Extends Deadline For Rights Issue

Recapitalisation: UBA Extends Deadline For Rights Issue

The United Bank for Africa (UBA) has extended the closing date for its rights issue by two weeks. The rights issue, which was originally scheduled to close on 5 September 2025, has been shifted to 19 September 2025.Join our WhatsApp Channel This was contained in
TELEMMGLPICT trans NvBQzQNjvBqpVlberWdEgFPZtcLiMQfydmClwgbjjulYfPTELibA
Previous Story

Premier League Announces New Record £6.7bn Broadcast Deal 

2024 Budget: Gov Makinde Presents N434.4bn As Education Gets Highest With 20.8%
Next Story

2024 Budget: Gov Makinde Presents N434.4bn, Education Gets Highest With 20.8%

Don't Miss

Lagos-Calabar Coastal Road: I Insist That Our Resources Be Used Judiciously, Obi Replies Umahi

Lagos-Calabar Coastal Road: I Insist That Our Resources Be Used Judiciously, Obi Replies Umahi  

Mr Peter Obi, has reiterated his position on the Lagos-Calabar
x

Ooni Of Ife, Queen Welcome Twins

The Ooni of Ife, Oba Adeyeye Ogunwusi, and one of