At the very least, the company that the pilots work for is far less valuable. That will make it easier and cheaper to be targeted (again) by activists or even someone like Amazon or Wal-Mart who didn't want or need a trucking operation, just a cargo airline. Stand-alone it'll likely be more quickly to suffer damage in an economic shock and probably a bunch of other negatives that I can't think of.

On the positive side.........well I haven't really thought of anything other than a short-term stock win for major shareholders who already own in advance of the split (you know, company officers and investment funds). Oh yeah - here's one. Another BOD is created and some more CEO/CFO/COO type positions for the cronies, so there's that.

 

UPS freight sold for $800 million. It was a significantly smaller operation than FedEx freight. I’m seeing FedEx freight being valued at 30 billion. Not exactly an apples to apples comparison.

 

I agree that they are probably not the same thing. What we sold off was a division formed after we bought a LTL operation (I believe Coyote Logistics). The company found that it’s a cutthroat business with very low margins that didn’t integrate well with the rest of our business. They sold it for around what they paid for it. LTL has nothing to do with air freight, so unless they do more than that, it may have minimal impact on your pilot group. If it’s your whole FEDEX Ground operation, than yeah, that may negatively impact your air operation by removing filler for aircraft that aren’t filled by Express packages. That couldn’t as easily be done at Brown simply because there has never been a differentiation between ground and air. Air just makes the next day and second day products possible. The same drivers have always delivered all of our products.

 

UPS Freight was formed from the UPS acquisition of Overnite in 2005 for $1.25B.

UPS Freight was sold to TFI in 2021 for $800M.

Coyote Logistics was purchased by UPS in 2024.

 

FedEx bought American freight ways for$1.2B in 2006, also after smaller companies. Spinning them off for $35B value. Seems like a better move than UPS.

 

The amount of FedEx pilots I have flown with who have no idea the difference between LTL shipping and parcel shipping or could even describe what those two things are on their own is mind-boggling (and don't even get me started on the myriad of services provided in the parcel sector that most pilots have no idea the differences between). This conspiracy that spinning off FedEx Freight means that the company is setting up a new parcel company to get around the scope provisions for domestic flying is on the level of believing the world is flat as a pilot. We fly very very very very little LTL domestically right now because the shipments are normally not required to be there overnight (and no one wants to pay for that) and there is a robust LTL distribution network in this country domestically via long haul trucking.

It is very clear to anyone who understands the long game happening here on why Freight is being spun off and it is to unlock a massive amount of new capital via the selling of stock in the new company. With Yellow going out of business (thanks Teamsters!) a couple years ago and UPS not being in the market anymore, it is clear FedEx Freight is going to use that massive capital to keep their rates at rock bottom for a long time to gain more market share from the likes of Old Dominion and XPO. The latest market share percentage for FedEx Freight is estimated around 15% of the domestic LTL market, and I would not be shocked if it the goal of the corporation for that to get to 30% or even more or until the Feds step in with competition protections.

 

CP, You should know better than to make a post that has truth to it. You are supposed only post that Raj is going to screw us with this deal and the new company is going to wet lease all our freight. I heard they are going to buy ASL and bring them to the US!

 

Considering your rapidly approaching retirement, the only credible analysis you can provide for any deal is section 28. Section 28 will be the only portion of the agreement that has any material effect on you. Meanwhile, while we’ve all been told to sit down and color by you and yours the airline has continued to shrink. These are facts, someone just posted the fleet plans from bids going back to 2022 to the most recently posted bid. We’ve seen a net loss of 58 aircraft while you have been telling us there is nothing to see here. We are fighting for our futures. I’m sorry if you didn’t prepare for yours.

 

Comparing Covid to now?

Mayyou should have prepared for your future by going to one of the big three.

The senior earned more in retirement, you will tell the guys in the next contract the same thing, too bad. Until it is your turn and you will be screaming that you deserve more.

 

I’m comparing 2022 to now, a net loss of 58 aircraft. The complete outsourcing of the EU narrowbody network had nothing to do with the pandemic.

Can you elaborate on that last part that you mentioned about earning in retirement? Everyone’s scenario is different. Personally, I’m saving and planning for retirement (and have been for over 20 years) without taking any pension into consideration. I sacrifice every paycheck to invest in my future and my family’s financial security. The issue I have is that the projections and calculations I make are based on being employed and earning for the next several decades. Sec 1 is what guarantees my earning ability barring any disqualifying medical event. I’ll continue to save and continue to plan, that’s my responsibility to my family.

I’m sorry you chose to spend every penny and not save when the opportunity allowed and now you’re dependent on a pension increase to keep you afloat in retirement. The worst part of that is you’re asking me to sacrifice my own family’s financial security and my earning ability to make up for your mistakes. You’re an adult, a 64 year old man, you now have to live with the choices you’ve made. Fortunately for you, many of us have still supported a balanced strategy and will take some lesser gains in order to secure a better section 28. We could have had a deal that would have passed years ago if we were as willing to sell out the near retirees as you are willing to sell out those with long careers ahead.

For the record, I have flown with you and it is surprising that your real persona is so much different than your online persona.