Amazon Air Crash Highlights Outsourcing Model's Liability Loopholes
An Amazon Air cargo plane crashed after overshooting the runway at Miami International Airport on September 6, killing five people in a van. The Boeing 767 was operated by 21 Air as part of Amazon's outsourced air cargo network.
The National Transportation Safety Board (NTSB) is investigating the incident and plans to interview both pilots after finding that the jet increased thrust before overshooting the runway. The investigation will examine possible contributing factors, including pilot error or mechanical issues.
Amazon has a history of outsourcing its logistics operation to independent companies, which helps the company offload liability for operating trucks and aircraft. In this case, Amazon contracted with 21 Air to fly at least 208 flights on September 6, using eight different contractors.
The NTSB typically examines who had 'operational control' of the aircraft that crashed, which usually comes down to the cargo carrier. If 21 Air is found liable, the company should have adequate insurance coverage, and most claims are settled privately between insurance carriers and plaintiffs.