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FedEx to furlough when they lose postal contract in 2007?

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FedEx to furlough when they lose postal contract in 2007?

Old 06-28-2006, 06:48 AM
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Default FedEx to furlough when they lose postal contract in 2007?

NEW YORK, June 28 (Reuters) - United Parcel Service Inc. (UPS.N: Quote,
Profile, Research) and the U.S. Postal Service have agreed to a deal to be
announced on Wednesday that will put mail on the package-delivery company's
planes, a UPS spokeswoman said.

Citing people familiar with the matter, The Wall Street Journal said terms
of the arrangement call for UPS to begin flying mail for the Postal Service
this Saturday.

The agreement will be announced at 11:30 a.m. in Washington, said UPS
spokeswoman Laurie Mallis, who was unable to provide further details.

The deal is expected to generate revenue of more than $100 million a year
for UPS, a fraction of the company's annual revenue but an expansion of its
business relationship with the post office, the Journal said.



If UPS is successful, it could be in a strong position to compete for some
or all of the postal business now handled by FedEx Corp. (FDX.N: Quote,
Profile, Research) when that $1.3 billion annual contract comes up for
renewal in 2007, the newspaper said.




Can you say furloughs at FedEx if this happens!
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Old 06-28-2006, 07:22 AM
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Probably. Then the furloughees will just go apply at ups
 
Old 06-28-2006, 07:32 AM
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Please, Please do not respond to this idiot. Consider the Source!!
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Old 06-28-2006, 07:38 AM
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Originally Posted by Browntail
Can you say furloughs at FedEx if this happens!
I wish you could get furloughed. It sucks and you make a lot of good people at UPS look bad. Nice job ***hole.

I know I should of ignored him but I couldn't help myself. That will be my last post to him forever!

Peace!
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Old 06-28-2006, 07:43 AM
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That is assuming that he actually does infact fly aircraft at all.
 
Old 06-28-2006, 07:50 AM
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Actually, it's not that far fetched. What will all these new hires at FDX be doing IF they lose the entire mail contract? FedEx does not have an entitlement to carry the mail and it is entirely likely that they will lose at least 50% of the contract.
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Old 06-28-2006, 07:57 AM
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Regardless of what you think of him, Lekites has said that UPS fully intends to pursue with vigor, the entire postal contract. He also said that if UPS does not get the contract, then whoever gets it won't make a penny because UPS will be bidding very low to get it.
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Old 06-28-2006, 07:59 AM
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Fedex will still fly the same routes with or without the mail. Their revenue is in the billions. As another post mentioned they are getting sued for over $300 million dollars. And will spend a bunch more fight it. This contract while good is just a speed bump.
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Old 06-28-2006, 08:00 AM
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"Actually, it's not that far fetched. What will all these new hires at FDX be doing IF they lose the entire mail contract? FedEx does not have an entitlement to carry the mail and it is entirely likely that they will lose at least 50% of the contract."

State your sources. UPS, as good as it is, has no where near the network or aircraft that FedEx has to fulfill this very large contract. Now I don't know if they will retain the entire contract, but losing anywhere near 50% of it sounds very unlikely. Again, state your sources if you have better info. With idiots like Browntail backing you your are already lacking credibility. BTW, I am sure the USPS loves the way the contract talks have gone at UPS. I am sure that will factor into thier choice as well. Good luck..
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Old 06-28-2006, 08:05 AM
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"Regardless of what you think of him, Lekites has said that UPS fully intends to pursue with vigor, the entire postal contract. He also said that if UPS does not get the contract, then whoever gets it won't make a penny because UPS will be bidding very low to get it."

Sounds like a sound business man. Watch Fred let him bid so low that they lose money to get it and take on UPS on the international arena where the losses from that flying will allow FedEx to make more money flying at better prices there and continue that expansion. I only hope this guy is as stupid as he sounds.
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