Originally Posted by
TransWorld
I was specifically thinking about how packages get picked up and get to the planes and then get to their final destination. This requires a tremendous amount of infrastructure and market capitalization for ground work.
While frequent flier programs and lounges for passenger airlines are some value, they pale in comparison to the market capitalization of all the airport terminals, parking garages, taxis, ubers, etc. This “ground work” would be needed to make a fair comparison. Don’t know that exists. But it would be needed to make a valid apples to apples comparison. People need to understand this when they are trying to make comparisons and drawing conclusions.
Most of what you are talking about is infrastructure that pax airlines pay rent or otherwise support through fees, etc. UPS especially, and to a lesser extent FedEx, own most of the infrastructure they use (outside of airports, which is a small piece of UPS’ portfolio). The company has a relatively light debt load relative to its size and assets. Due to the nature of the operation it has employees and assets in every congressional district and most countries. That gives it incredible sway. Pax airlines own airliners and not much else in the way of physical assets. Market capitalization is what Wall Street thinks a company in its totality is worth. It is the ultimate apples to apples comparison.