Originally Posted by
3pointlanding
One thing to remember FedEx does not furlough and that is a big relief if you are junior.
I cringe when I hear comments like this. There is a big difference between FedEx has never furloughed (truth) and FedEx does not furlough (it is possible but has never happened).
FedEx has invoked 4.A.2.b of our contract and reduced line values below the standard minimums in order to prevent furloughs. It was not a fun period for those stuck on aircraft who had their monthly average line values slashed.
Originally Posted by
CL300
An honest question though, what happens if the Postal contract goes away at FedEx? Would there be a need to furlough?
THIS !!
YES!! This is probably the biggest threat to any FedEx new hire on property and anyone hired within the last five years. The current postal contract expires September 29, 2024. Should FedEx lose a significant portion of this contract, there will be numerous furloughs at FedEx. The postal contract is mostly responsible for the day sorts. And the day sort or day flying represents roughly 40% of flying at FedEx.
Amazon is building a very large sort hub in Cincinnati (CVG) and are buliding out a transportation network in the USA. Since Amazon is already very cozy with the USPS, Amazon could bid and win this postal contract in 2024. Or UPS which has been competing with FedEx for postal contracts could win the majority next time around.
Should FedEx lose this contract, or a significant share of what it flies now, you're going to see drastic cuts in the crew force and the network. NO OTHER AIRLINE CREW FORCE IS EXPOSED TO THIS HIGH OF RISK IN LOSING FLYING HOURS AND FURLOUGH.
If anything, UPS/Amazon and passenger airlines are in a better position to take postal service market share away from FedEx.
This is the elephant in the room. New hires should understand this risk.