FDX Chairman Msg
 

Mr. Smith made a comment in his recent address that putting economy freight in the belly of passenger airlines will increase FedEx Express traffic. While FedEX Express bottom line may certainly be improved, seems like this is a direct assault on shipping via organic assets (Purple Tailed Aircraft) which does not bode well for our pilot corps. Comments?

Another record peak without the use of drones, trains, and blimps.

I put the Pk of me getting anywhere with 2 commercial legs within 3 hours of expected at about 0.7 and belly freight may or may not get the same Exec Plat treatment I get.

I hope Mr Smith continues to use the most profitable, efficient, and customer pleasing means of moving freight available to him and I wish him a long life.

No disrespect to Mr. Smith intended.

I didn't think you did. Cabotage is our only real threat, not belly freight or trains. Of course getting bought out by a whacky lefty loon like Soros wouldn't be good for our union either.

seemed like a threat to me

So we’re taking advantage of that cost-effective space on passenger flights to augment our unmatched Priority “Purple tail” network. It’s clear: Having both Priority and Economy options allows us to increase our Express market share overall.

Simultaneously, we’re moving lower-yielding heavier traffic into other networks, primarily through FedEx Trade Networks. With its bulk-freight capabilities around the world, Trade Networks can put shipments in both FedEx and third-party systems for those customers who require lower costs and are willing to settle for longer delivery times. Trade Networks sea transport now has better schedules and enhanced information technology. Lower value goods can be economically moved by Trade Networks in a heavy ocean lane like Shanghai to Los Angeles, and then delivered by FedEx Ground or FedEx Freight to diverse final destinations in North America.

This is what DHL has been doing for decades. Outsource all of the flying to whatever is cheapest. The market is rapidly changing to where this type of business model makes more sense. Charter aircraft only when needed and outsource to cheaper forms of transportation to the maximum extent possible ie trains, blimps, belly freight, USPS, whatever can move freight for a profit. The overnight delivery has shrank to a very small part of the business model.

Hey now! This is the de facto FedEx forum. You are NOT allowed to say ANYTHING negative about FedEx, otherwise you risk forcing reality upon the purple kool-aid drinkers that populate this forum.

And we saw how great DHL did in the U.S. retail space.

This kind of thinking can you lead you down a foolish negotiating path. Some were thinking foreign pilots would take FDX HKG flying. Remember, they actually do have a pilot shortage in Asia.

You were developing a bit of a point until you mentioned Blimps and the USPS. Good luck with that.

Chartering works great until the charter company goes BK or has a string of incidents that gets traced back to poor training and they get their certificate suspended. That's how the USPS got out of express freight.

And yet we are flying the same routes to the same city pairs we have always flown. One could easily look at belly freight city pairs exactly as feeder routes or as potential new routes for Express as soon as we steal enough market share.

Two things to remember:

If it was cheaper and as reliable to do it that way we would already be doing it that way.

God grant me (and ALPA) the serenity to accept the things I cannot change; courage to change the things I can; and wisdom to know the difference. And Lord please help Membrain find a little friend he can play with so he does not keep coming on here annoying the big boys.

+1

+1,000,000,000,000,000