Originally Posted by
Whistlin' Dan
This is not good news for the air cargo industry, because it moves a significant volume of freight from first-tier carriers to third- and sub-third tier carriers. That won't affect UPS or FedEx's bottom lines by much since it's already heavily-discounted, but it will have a direct impact on the amount of flying done by their pilots. It will also increase the pressure to drive down wages at both of those companies, which, in-turn, may have severe repercussions among the ACMI carriers that will be flying that work.
Under the current administration and for at least the foreseeable future, Amazon has no incentive to bring it's airline ops in-house. None. And being a perma-temp flight crewmember for Amazon isn't going to be the panacea some people seem to think it's going to be, either. Good luck, guys......
Your lack of knowledge of the situation strikes again. UPS and FedEx will be welcoming this news as it will remove high density, low margin volume from their networks and free up space for much higher yielding volume that they had to previously turn away as the contractually guaranteed Amazon volume got priority.
As for wages, this will have no effect on FedEx and UPS but will have a huge impact on ATSG. ABX and ATI will now see themselves as peers of FedEx and UPS and not as a traditional ACMI. Therefore, they will be wanting a new contract that's comparable with FedEx and UPS.