Originally Posted by
DC2EWR
Take aside the type of flying (cargo v major) - Where is the best place to be right now? I remember a decade ago that the likes of FDX was over and above the best paid, and most secure pilot job.
Now I was just peeking at the UAL contract and widebody pay is more? I haven't compared Retirement clauses yet, so that might be a game changer but also,
Is anyone at FDX concerned about emerging technologies that could impact the business model? I've read a Stanford Business Review (not the only) article that indicates traditional cargo is under a real threat from new entrants to the market.
Prime Air may not need as many airframes to get the same job done since they will supplement with drones, automated transport and thousands of AMAZON FLEX "Uber-like" independent operators (average joe driving his sedan or pick up) will also supply lift from the ground-based Distribution Center to provide same day/next day delivery.
In 5 years or less, we could be experiencing a round-the-clock movement of parcels that will completely satisfy at least a 2 day delivery algorithm without need for much airlift? It's part ways scary and fascinating but remember Blockbuster video?
https://flex.amazon.com/about
I hate to bash you because I would be a liar if I said I am not worried about the future. Nobody knows what is going to happen. Every airline pilot's job is at risk from a variety of emerging technologies.
However, no company comprises more than 3% of FedEx's business. Meaning, Amazon currently does not use 3% of FedEx's system. So even if FedEx lost Amazon altogether, our business would only be down 3%.
More importantly, non-e-commerce deliveries to residences and business-to-business traffic represents the vast majority of FedEx's revenue.
Additionally, brick and mortar companies are now designing their own mini-fulfillment centers to better compete with Amazon. Amazon is not the cheapest it once was.
FedEx has started FedEx Fulfillment -- FedEx will warehouse your goods, when an order is placed, a FedEx worker will retrieve the item, wrap it in your brand's box, and ship it to your customer.
Be it naive or very smart, our found Fred Smith continuously says he isn't worried about Amazon moving their own e-commerce.
E-commerce also is very expensive. UPS found that out the hardway this year. Individual home shipments are expensive and inefficient.
UPS stock suffers biggest drop in 2 years as e-commerce surge is still causing problems - MarketWatch