October 5, 2021- Miguel Mendoza & Marie Lloyd, Amazon Air- Hybrid Meeting In-Person and via ZOOM

Tuesday, October 5, 2021

Hybrid Meeting In-Person and via ZOOM


Present:  Deborah Barmack, Peter Barmack, Carole Beswick, Greg Bradbard, Ken Coate, Michelle Decker, Kevin Dyerly, Fran Inman, Mark Kaenel, Lena Kent, Lowell King, Mike Layne, Bill Lemann, Marie Lloyd, John Magness, Darcy McNaboe, Miguel Mendoza, John Mirau,  Dan Murphy, Brian Nestande, Vikki Ostermann, Bansree Parikh, Catherine Pritchett, Thomas Rice, Michael Rivera, Dan Roberts, Elizabeth Romero, Kate Salvesen, Dan Schenkel, Kristine Scott, Paul Shimoff, Sol Teh, Eric Ustation, Pete Van Helden, Reggie Webb, Ray Wolfe and Marisa Yeager.

Guests: Sinai Arocho and Debra Mustain.

Announcements:  1) Anniversary recognition was given to Inland Action as the group has been operational for 59 years.

Lowell King, Chair, presiding.

Motion by K. Dyerly/Second by M. Layne/Passed: Minutes from September 28, 202.

Cat Pritchett introduced Miguel Mendoza, Sr. Aviation Public Policy and Marie Lloyd, Manager, External Affairs, Southern California Public Policy, Amazon Air.

Amazon Air is a part of their “Middle Mile” network.  The Middle Mile team develops routing solutions to move customer orders from its vendors and fulfillment centers to its network of sortation centers, air facilities, and delivery stations by in the most efficient way possible.  Once an order is placed it is processed through a fulfillment center and then transported via aircraft or truck to a sort center or delivery station where packages are broken down to specific zip codes and four-digit identifiers.  The packages now ready to be delivered to the customers are carried by both Amazon and third-parties like UPS and the U.S. Postal Service.

Success of the air network is dependent on the fulfillment center (FC) network.  They have several types of FC’s each of which specialize in categories such as sortable items (typically smaller than a microwave), non-sortable items (large items), large bulkier pieces (like furniture), soft lines (clothing, jewelry, linens etc.) and shoes.

In 2013 Amazon had difficulties with customer satisfaction as many holiday packages failed to arrive on time.  Much of the delay was due to poor weather but increased demand and lack of capacity were at the core of the problem.  Their solution was to invest in their own transportation and logistics network to supplement what the market already offered. In 2015 they leased airplanes and found that this was viable solution to aide in addressing their capacity.  As a result, they have added more FC’s closer to their customers, purchased vehicles and trucks and built out that last mile delivery service.  It is the air network that moves specific customer items from one side of the country to the other in two days.  Small business benefits as they can reach customers coast to coast helping them grow and expand through the Amazon partnership.

Amazon has approximately 80 aircraft most of which are 767’s and 737’s. The aircraft flying out of San Bernardino are all 767’s which hold between 14-20,000 packages.  In January Amazon announced they would purchase and convert 11 passenger aircraft for freight movement from West Jet and Delta Airlines.  This year they are introducing their turbo prop aircraft that will serve smaller markets across the U.S.  Amazon Air continues to utilize partnerships with third party carriers such as ATSG, Atlas and Sun Country airlines who supply flight crews to operate the aircraft.

Amazon employees operate the current five regional air hubs (San Bernardino is one) and two central air hubs (Ohio & Kentucky).  The 40 Amazon Gateway facilities (like in Ontario & L.A.) are operated by third party vendors that are responsible for hiring and operations.

At the San Bernardino International Airport (SBIA) they have a 650,000 sq. ft building with 9 daily flights which will steadily increase with time (SBIA can support up to 20).  They have parking for 14 aircraft and have hired some 1,500 employees since their launch in April.  Employees receive comprehensive benefits and when fully built out, the facility can support up to 4,000 jobs.

Amazon’s presence in Southern California and the Inland Empire is due to our accessible workforce, ideal infrastructure, and thoughtful partners like Hillwood and SBIA who have been strong supporters.  The air hub was privately financed and built from the ground up to meet Amazon’s operational needs from sustainability and sortation capabilities to robotics and leveraging technologies to create efficiencies throughout the network.

In order to meet their climate pledge goal to be net carbon zero by 2040 across all of their operations, they have secured up to 6 million gallons of sustainable aviation fuels (SAF), they use electric ground support vehicles, solar roof tops, and other building improvements and operation changes.  Committed to sustainability and raising the bar in the industry, Amazon has purchased 100,000 electric delivery vans manufactured in the U.S. some of which are already used in the Los Angeles area.  They will introduce these new vehicles to some 15 more cities this year, 10,000 next year and the balance of the vehicles will be in use by 2030.  Companies joining them in the pledge are Alaska Airlines, Best Buy, Verizon, and Heineken among others.  In 2020 Amazon created The Amazon Climate Pledge Fund, a corporate venture capital fund that invests in companies that can accelerate Amazon’s path to meeting The Climate Pledge.

They encourage community involvement and welcome schools and community groups to come in and see operations.  These efforts will resume and increase when it is safe to do so.  Amazon is also involved in many local philanthropic efforts such as the Riverside Arts Academy, the San Bernardino Library Foundation and the Boys & Girls Club of Fontana.

Amazon has invested $81B across the state and has created 153,000 plus jobs in California (25K in San Bernardino County and another 5,000 in the City of San Bernardino).

For more information, please go to: https://www.aboutamazon.com/investing-in-the-u-s

A Q & A period followed.
Meeting adjourned at 8:28 a.m.