Thread: LOA talk at FDX
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Old 07-30-2008 | 02:11 PM
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Albief15
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One point...if margins on domestic service are less than 7%, how much do we want to "take back" from the optimizer? I'm not disputing that FDX is still a profitable enterprise, but trying to extract gains from our lowest margin area is going to be tough. Raise the cost there too much and we'll see more pressure to truck the goods. Granted, FDX Ground has its own issues, but even with Diesel at 4.80 the trucks are not our friends.

International? Yeah...we can squeeze there. There's room. But domestic yields don't invite a huge "unwinding" of the optimizer. Not saying we can't do some stuff to allieviate some issues, but protecting the goose is still important.
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