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They COULD, but doesn't mean they WOULD. As is better for line pilots Fed Ex seems to believe in profit growth through revenue growth/growing market share. Since our ex-CFO became CEO the UPS strategy is primarily profit growth through cost controls and efficiency improvements. The results speak for themselves, but they may not be sustainable, and if (big if it seems) sustainable economic growth returns UPS will definitely be behind (as usual) to capitalize on it. They seem to be betting that things will continue to decline, and if true we are far better postured than Fed Ex to weather the end of the world, as apparently our CEO sees it. Postal yield is anemic in UPS' eyes, and they really hate the idea of buying more airplanes or hiring more pilots...for now, with THIS CEO. Originally Posted by Unknown Rider
You've got 6 months to ramp up, you don't think you can do it?
I bet even money they're just bidding the contract to mess with Fed Ex and make them lower their yield on a contract. Right out of the Warton Business School handbook.