I am employed by FedEx. Yes, I am long term worried about Amazon.
Many people think FedEx airplanes are filled with eCommerce packages. During peak, maybe. Day to day, no. When I go to the back and I see whats on the airplanes I see bulk items, palletized items, large shipments of items between businesses, and hazmat.
Unless Amazon chooses to get into this space with their business to business model, yes Amazon will become a threat to UPS and FDX. However, if they're going to remain in the eCommerce space, I don't see them competing much with UPS and FDX, rather trying to build out their own shipping system to lower their shipping costs as much as possible.
What I find interesting is that Amazon noted service failures on FDX and UPS as the reason why they started their own shipping service. Why does Amazon think they're not susceptible to the same service failures as FDX and UPS? When the weather gets bad, Amazon will have the same issues.
Also, FDX has installed electronic vision and HUDs in their aircraft whereas Amazon has not. So technically FDX airplanes have a better chance getting into airports with bad weather.
How all of this plays out remains to be seen. But yes, Amazon is a threat and if Smith is really not concerned, then FDXers have a big problem. But just as he said FedEx must be looking at drones and automated technology because of his commitment to share holders etc.etc., he is watching and looking at Amazon.