Yesterday, Jeff Bezos unveiled that Amazon is pursuing an air-launch system for making its own satellites. This caught the attention of investors, who questioned whether this project was a sign that Amazon was trying to do away with its reliance on traditional Boeing and Lockheed Martin suppliers.
It’s worth noting that Amazon has reportedly pursued this idea before but abandoned it due to the high cost of building rockets from scratch. However, now the company is considering a plan to acquire flight services from SpaceX or another cheaper alternative.
On Wall Street, stocks in both Boeing and Lockheed tumbled 4% after the announcement was made public.
Amazon told investors that it wants to take advantage of the growing demand for internet access in regions like India and Africa. Bezos believes low-altitude flights are key for keeping costs down, as these missions would not require costly high-altitude launches.
As of now, we don’t know if Bezos is planning to license an existing aircraft or build a new one from scratch. If a new plane were created, however, it could threaten the business that Boeing and Lockheed currently have.
| Homepage | Click Hear |
