FedEx/UPS...one way to kill Amazon Prime Air

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They should have announced two months ago that due to the direct competition Amazon Prime Air was going to be that they would not deliver any overnight or two day shipments for them this year. People would stop shipping via Amazon. Don't think Prime has enough a/c yet to survive on it's own this year (especially with current ABX issues). This could devastate Amazon right at their peak time. UPS/Fedex could then negotiate with Bezos a 10 year deal with no compete clause. The short term losses for the quarter they would see by refusing shipments would be offset by the long term stability of the 10 year no compete. They could effectively kill off the competition before it starts to affect them.
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Quote: They should have announced two months ago that due to the direct competition Amazon Prime Air was going to be that they would not deliver any overnight or two day shipments for them this year. People would stop shipping via Amazon. Don't think Prime has enough a/c yet to survive on it's own this year (especially with current ABX issues). This could devastate Amazon right at their peak time. UPS/Fedex could then negotiate with Bezos a 10 year deal with no compete clause. The short term losses for the quarter they would see by refusing shipments would be offset by the long term stability of the 10 year no compete. They could effectively kill off the competition before it starts to affect them.
Uhhh - because that is illegal.
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FedEx/UPS...one way to kill Amazon Prime Air
...besides collusion issues, it would likely breach existing shipping contracts.

I have reason to believe Amazon volume on browntails has done nothing but increase in 2016, even as Prime Air started adding dedicated tails.
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To bad the drug test and really considering medical marijuana to deal with aviation stupidity


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Some internal thoughts should be left unsaid.
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Quote: Uhhh - because that is illegal.
Beat me to it lol...
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Plus you can bet the pax carriers would pick up the business...
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I think the best thing UPS could do to compete with Amazon is to purchase Overstock.com, put some capital behind it, and hire some talent away from Amazon to help run it.
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Or buy Atlas, ATSG and Kalitta and kill DHL and Amazon in one fell swoop using the spare change they have down the back of the sofa....haha....obviously not a serious suggestion before any panties get wadded.
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Quote: Or buy Atlas, ATSG and Kalitta and kill DHL and Amazon in one fell swoop using the spare change they have down the back of the sofa....haha....obviously not a serious suggestion before any panties get wadded.


It's funny you say that, I've always wondered why the merger movement never took off on the freight side of the industry. Seems like it would be beneficial to some of the acmi carriers.

I don't see UPS making a move like that but wouldn't surprise me to see a few large ACMI's come together


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