Article: FedEx to reorganize air network - Airline Pilot Central Forums

hercretired , 12-21-2023 07:18 AM

Gets Weekends Off

Might be old news, article published today tho: https://www.aircargonews.net/busines...s-air-network/

Quote:
The company this week revealed that it would divide its air network into three sections; purple orange and white.

The purple network will deliver high-priority, high-margin volumes through FedEx-owned aircraft operating under a hub and spoke model.
Orange will build off-cycle FedEx flights into the network to build density, decongest hubs, and connect with its global surface networks.
Finally, white will use partner airline networks to add capacity when needed.

BoilerUP , 12-21-2023 08:06 AM

The NeverEnding Story

https://www.freightwaves.com/news/fedex-hopes-new-color-coded-air-network-will-shore-up-profits

https://www.fool.com/earnings/call-transcripts/2023/12/19/fedex-fdx-q2-2024-earnings-call-transcript/

Quote:

Originally Posted by Raj Subramaniam

With the rapid growth of e-commerce and as volume mix continues to shift to deferred, we recognize the need to reconfigure our network to focus on both speed and density. This fundamental network redesign, which we call Tricolor design, is momentous in our history and includes several key elements. First, we will deploy what we call our purple tail fleet, which is our FedEx-owned assets' time for delivering high-priority, high-margin volumes using the existing hub and spoke model. This is our purple network, which will be the backbone of our international priority parcel business. Second, we will retime a portion of our purple tail flights for what we call our orange network, which will operate off-cycle. This change will give us time to build density, decongest our hubs during the precious night sword, and feed into our surface networks, including our international road network, as well as FedEx Ground and FedEx Freight in the U.S.

This provides us a differentiated capability to drive profitable, less capital-intensive growth in the sizable global deferred parcel and airfreight markets. And third, we will continue to leverage our global partner network as an adaptive capacity layer, particularly on imbalanced trade lanes. This is our white network. These changes will improve utilization of our assets, increase margins, and enhance ROIC. The air network redesign is a critical piece of our DRIVE execution at Express and will support the realization of our targeted $4 billion of total DRIVE savings in fiscal year 2025.

hercretired , 12-21-2023 08:25 AM

Gets Weekends Off

In one year, these "networks" will get a "valuation" put on them by Raj, and sold to Amazon or Atlas

what they are doing is all about SEC compliance and "metrics". It is easier to run excel spreadsheets when they are broken down this way.

My un-educated opinion

JackStraw , 12-21-2023 12:37 PM

Gets Weekends Off

Quote:

Originally Posted by hercretired

Sold to Atlas? Atlas doesn’t even own itself.

hercretired , 12-21-2023 02:03 PM

Gets Weekends Off

Quote:

Originally Posted by JackStraw

Sold to Atlas? Atlas doesn’t even own itself.

true

Apollo

just my wild a** internet speculation