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Amazon Taps CVG Airport as Air Hub, 2,700 Jobs Expected

A blockbuster boon to Northern Kentucky's economy was announced Tuesday when the Commonwealth of Kentucky and the Kenton County Airport Board approved an incentives package that will bring Amazon's primary air hub at the Greater Cincinnati/Northern Kentucky International Airport (CVG).

The investment by Amazon is expected to be more than $1 billion and could produce an estimated 2,700+ jobs.

The Kentucky Economic Development Finance Authority (KEDFA) and the Airport Board held special meetings on Tuesday for the purpose of approving the incentives. According to KEDFA documents, the hub is needed to serve the growing needs of Amazon Prime air cargo planes. 

The state approved $40 million in payroll tax incentives over ten years and Amazon is expected to pay an average hourly wage of $26, including benefits. 

The state also requires Amazon to keep 90 percent of its current full-time workforce in the Commonwealth.

Amazon has had a presence in Kentucky for nearly 20 years, employing more than 10,000 people in full-time jobs across 11 fulfillment center locations. 

“As we considered places for the long-term home for our air hub operations, Hebron quickly rose to the top of the list with a large, skilled workforce, centralized location with great connectivity to our nearby fulfillment locations, and an excellent quality of living for employees. We feel strongly that with these qualities as a place to do business, our investments will support Amazon and customers well into the future,” said Dave Clark, Amazon Senior Vice President of Worldwide Operations. “We couldn’t be more excited to add 2,000-plus Amazon employees to join the more than 10,000 who work with us today across our robust operations in Kentucky.”

Last year, Amazon entered into agreements with two carriers to lease 40 dedicated cargo airplanes to support Prime members with fast, free shipping. Today, 16 of those planes are in service for Amazon customers with more planes rolling out over time. Amazon’s Prime Air hub at CVG will support Amazon’s dedicated fleet of Prime Air cargo planes by loading, unloading and sorting packages.

“Amazon’s Prime Air hub promises to revolutionize the fulfillment industry worldwide, and Kentucky is excited to partner with them as they embark on this disruptive, transformative and exciting venture,” said Governor Matt Bevin. “Kentucky’s ideal location, proven workforce and an already extensive shipping and logistics industry have been the backbone of our relationship with Amazon for nearly 20 years. This new project will pay dividends to both the company and our state, and we are truly grateful for the jobs and economic impact it will bring to the commonwealth.”

“We’ve worked hard to ensure CVG is a great place to do business and we couldn’t be more pleased that Amazon recognized those efforts with plans to build a top-in-class air cargo hub at our airport,” said Candace S. McGraw, CEO of the CVG Airport. “A vibrant airport improves the economic vitality of the region and adding thousands of new jobs through establishing this hub at CVG will certainly be transformational for the local economy and local businesses.”

This story will be updated when more information is known.

-Staff report

Photo: CVG Airport (via Wiki Commons)