Originally Posted by
Precontact
You guys are pretty arrogant regarding this. Many things have changed, and the post master general isn't Fred's best friend this time around. UPS will win a significant share of the USPS volume (~50% me thinks...)
PreContract, Please explain how UPS can do the Contract? UPS will not take an Airplane out of a Gateway during the day. Because it has to be there that evening to go to the Sort with Next day Volume.
FDX had the extra lift back in the day, and then bought more lift into the system. UPS has been shrinking the Air Side for years. UPS has 300 less pilots than during the Peak of size. And way less Aircraft. Wasn't the MD-11 a stop gap airplane? Where is the LRF they talked about 10 years ago? Still on the Horizon? Is Chris Williams going to dream up a time machine?
UPS does not have the capability for the Contract. Ground Side won't cut it. Unless UPS starts ordering Airplanes, which are all spoken for, good luck.
This is all about lowering the Profit margin for FDX.