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Old 01-08-2020, 11:06 AM
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Anyone else a bit perplexed by the content on these updates? I always open up the message thinking I’ll see some big news on system form, bids, or future operations. I usually get to the end and go “hmmm, not much there.” This one was no different. Quick reference to challenging earnings so we will cut Transcon and some domestic routes. Then, right on to lengthy rain gutter for airplane going away news and endless holiday party notes.
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Old 01-08-2020, 12:14 PM
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Instead of transcons you should have said intercontinentals.
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Old 01-08-2020, 03:27 PM
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Originally Posted by Fdxlag2 View Post
Instead of transcons you should have said intercontinentals.
Like a Lincoln?
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Old 01-08-2020, 06:40 PM
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Originally Posted by NoHaz View Post
Anyone else a bit perplexed by the content on these updates? I always open up the message thinking I’ll see some big news on system form, bids, or future operations. I usually get to the end and go “hmmm, not much there.” This one was no different. Quick reference to challenging earnings so we will cut Transcon and some domestic routes. Then, right on to lengthy rain gutter for airplane going away news and endless holiday party notes.
Fred Smith was asked why keep Express and Ground/Freight as separate companies. He gave what I thought was a BS answer. But the analyst said it would bring a lot of savings to FedEx.

I wonder if that is what they're examining? UPS's airline is much smaller than ours and I don't think they haul much less than we do.
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Old 01-08-2020, 07:42 PM
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Originally Posted by PurpleToolBox View Post
Fred Smith was asked why keep Express and Ground/Freight as separate companies. He gave what I thought was a BS answer. But the analyst said it would bring a lot of savings to FedEx.

I wonder if that is what they're examining? UPS's airline is much smaller than ours and I don't think they haul much less than we do.
That's the gist of what the analyst are complaining about. One driver for UPS will typically stop once or twice at a location - early for the next day air packages and later on for the 2 day/ground packages while the same location may see several different FedEx drivers. The UPS model is much more integrated and efficient, but also highly unionized. UPS Teamsters are one of the largest unions the country.
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Old 01-08-2020, 08:02 PM
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Originally Posted by NoHaz View Post
Anyone else a bit perplexed by the content on these updates? I always open up the message thinking I’ll see some big news on system form, bids, or future operations. I usually get to the end and go “hmmm, not much there.” This one was no different. Quick reference to challenging earnings so we will cut Transcon and some domestic routes. Then, right on to lengthy rain gutter for airplane going away news and endless holiday party notes.
Standby for the realignment bid....maybe some base closures as well. 2020/21 will be fun years. Hiring this year - didn't seem too positive.
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Old 01-09-2020, 05:47 AM
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Originally Posted by Precontact View Post
That's the gist of what the analyst are complaining about. One driver for UPS will typically stop once or twice at a location - early for the next day air packages and later on for the 2 day/ground packages while the same location may see several different FedEx drivers. The UPS model is much more integrated and efficient, but also highly unionized. UPS Teamsters are one of the largest unions the country.

Fedex uses the contractor/1099 model for Ground, UPS uses integrated system. Even with a highly unionized, in house workforce, operating margins are still higher at UPS, and it has been higher pretty consistently. Maybe this is why WS has been saying all along the split model doesn’t bring the savings Fedex mgmt says it does.
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