Amazon is said to be loosing patience with Atlas Air and the APA pilots union, and their joint refusal to resolve a long running pay and conditions battle.
The situation has been aggravated by several other developments. For one, the mediator has told the pilots that they are in breach of the conditions of mediation and need to sign the pay deal immediately. They seem to think they don’t have to.
Another was the decision of FedEx not to renew its delivery contract with Amazon. The costs of delivering Amazon parcels were said to be loosing it money and it felt it was wasting its time and effort, and wanted to improve its own services.
It’s said that while UPS hasn’t quite reached the same point, it too is loosing money delivering for Amazon, and a withdrawal can’t be ruled out.
Amazon is deeply dependent on Atlas Air and its subsidiaries for US Prime Air operations, and is said (though Atlas won’t admit it) to have its own staff overseeing the Prime Air operations implanted with Atlas.
Amazon has allegedly told Atlas and the pilots they have obligations to them under contract and they need to get the situation resolved ASAP, not in weeks or months.
One option for Amazon, apparently buried in their contract with Atlas is that they have the right to buy a minority stake in the company at any time of their choosing. That would give them board members and increased power to resolve issues that Atlas Air management have trenchantly refused to do.