Cargo consolidation
11-26-2006, 12:24 PM
#1
Gets Weekends Off
Thread Starter
Joined APC: Dec 2005
Position: FO, looking left
Posts: 1,057
Cargo consolidation
With FedEx and UPS posting profits close to a billion dollars a quarter, it seems logical that these companies would be interested in buying up the numerous small cargo companies.
Arrow
Atlas (merging with Polar)
Centurion
Custom Air Transport
Evergreen
Expressnet
Focus Air
Gemini
Kalitta
Kitty Hawk
Southern Air
Tradewinds
These companies all have 2-20 aircraft. Mostly MD-11's, 747's, and 727's.
Would this kind of consolidation be good for the cargo industry? Would it be good for cargo pilots? How about mergers between these small companies?
Thoughts.
Arrow
Atlas (merging with Polar)
Centurion
Custom Air Transport
Evergreen
Expressnet
Focus Air
Gemini
Kalitta
Kitty Hawk
Southern Air
Tradewinds
These companies all have 2-20 aircraft. Mostly MD-11's, 747's, and 727's.
Would this kind of consolidation be good for the cargo industry? Would it be good for cargo pilots? How about mergers between these small companies?
Thoughts.
11-26-2006, 12:30 PM
#2
Gets Weekends Off
Joined APC: Feb 2006
Position: DD->DH->RU/XE soon to be EV
Posts: 3,732
Originally Posted by ryane946
With FedEx and UPS posting profits close to a billion dollars a quarter, it seems logical that these companies would be interested in buying up the numerous small cargo companies.
Arrow
Atlas (merging with Polar)
Centurion
Custom Air Transport
Evergreen
Expressnet
Focus Air
Gemini
Kalitta
Kitty Hawk
Southern Air
Tradewinds
These companies all have 2-20 aircraft. Mostly MD-11's, 747's, and 727's.
Would this kind of consolidation be good for the cargo industry? Would it be good for cargo pilots? How about mergers between these small companies?
Thoughts.
Arrow
Atlas (merging with Polar)
Centurion
Custom Air Transport
Evergreen
Expressnet
Focus Air
Gemini
Kalitta
Kitty Hawk
Southern Air
Tradewinds
These companies all have 2-20 aircraft. Mostly MD-11's, 747's, and 727's.
Would this kind of consolidation be good for the cargo industry? Would it be good for cargo pilots? How about mergers between these small companies?
Thoughts.
11-26-2006, 01:57 PM
#5
done, gone skiing
Joined APC: May 2005
Position: Rocking chair
Posts: 1,601
I thought Atlas made sense for FedEx, and said so in a thread about the A380 delays. FedEx mgt didn't consult with me and went out and bought B-777's instead. 
As for the rest, I don't see what they bring to the show, for FedEx or UPS. Airplanes, pilots?? All available with less hassle and probably cheaper. 
As for the rest, I don't see what they bring to the show, for FedEx or UPS. Airplanes, pilots?? All available with less hassle and probably cheaper.
11-26-2006, 03:15 PM
#6
Gets Weekends Off
Joined APC: Sep 2006
Position: Retired
Posts: 3,717
Don,
I just knew it would happen eventually. It's hard to believe, and I've gotta keep pinching myself, but for once, I actually agree with you (not about the Atlas purchase, but for the rest of your response.) I'm making an appointment with a psychologist, first thing in the morning.
I agree that none of these airlines have anything that FedEx (or UPS for that matter) needs. Routes? Nah, we've already got the vast majority of the ones we want. Pilots? Nah, We'd just have to retrain them to fly the jets like our standards department wants them flown. It's easier to train new guys than to untrain already trained guys, then retrain them. Airplanes? It seems illogical to buy an airline just for its jets. We can probably get the jets from the desert much more cheaply, without the headache of all these new crews and other overhead. Frankly, if it weren't for the routes, the Flying Tigers buyout and merger would never have happened. There's still guys on the property who wish it hadn't. And that includes both purple guys as well as silver guys. Life is so strange, but through it all Don, your sister still is HOT!
I just knew it would happen eventually. It's hard to believe, and I've gotta keep pinching myself, but for once, I actually agree with you (not about the Atlas purchase, but for the rest of your response.) I'm making an appointment with a psychologist, first thing in the morning.
I agree that none of these airlines have anything that FedEx (or UPS for that matter) needs. Routes? Nah, we've already got the vast majority of the ones we want. Pilots? Nah, We'd just have to retrain them to fly the jets like our standards department wants them flown. It's easier to train new guys than to untrain already trained guys, then retrain them. Airplanes? It seems illogical to buy an airline just for its jets. We can probably get the jets from the desert much more cheaply, without the headache of all these new crews and other overhead. Frankly, if it weren't for the routes, the Flying Tigers buyout and merger would never have happened. There's still guys on the property who wish it hadn't. And that includes both purple guys as well as silver guys. Life is so strange, but through it all Don, your sister still is HOT!
11-26-2006, 04:19 PM
#8
done, gone skiing
Joined APC: May 2005
Position: Rocking chair
Posts: 1,601
Originally Posted by Jetjok
..............Frankly, if it weren't for the routes, the Flying Tigers buyout and merger would never have happened. There's still guys on the property who wish it hadn't.................
Oh come on.....we all know the Tiger merger was about acquiring the Tiger Pilots
The routes were secondary. 
11-26-2006, 04:51 PM
#9
Gets Weekends Off
Joined APC: Aug 2006
Position: Triple Capt
Posts: 608
Why buy something you don't need? If you need to dig a ditch in your yard you either hire somebody to do it or you rent a ditch digger for a day or two. If you're going to tile a bathroom why go out and buy a $500 tile saw when you can rent one or pay someone to do it?
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