Latest rumors
08-25-2017 | 11:25 AM
#41
Gets Weekends Off
Joined: Jul 2008
Posts: 705
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From: MD CA
FDX new gateways- Delhi, Bangalore, Clark, Manilla, Melbourne, Saigon, Athens, Fargo, etc, etc. Just off the top of my head. This is were hiring is driven from. But here at UPS, they can't even secure one slot at a major airport in Turkey!
08-25-2017 | 11:34 AM
#42
Gets Weekends Off
Joined: Jul 2008
Posts: 705
Likes: 0
From: MD CA
FDX 32B in 2009. 60B 2017.
Wow. From YCharts. If this doesn't show how lame ATL was I don't know what will. The Davis Doctrine.
08-25-2017 | 11:51 AM
#43
Line Holder
Joined: Jun 2014
Posts: 90
Likes: 0
FedEx has a different business model. They are an airline. UPS is a trucking company with airplanes. Although that is changing slowly (UPS will probably not give up their trucking mindset), it will be slow.
FedEx will open a gateway with no revenue stream. Put planes there and say fill them. It's not quite that drastic (they do have volume before they put a plane there)...but you get the idea.
UPS will not open a gateway until they have a sales force on the ground and assure themselves they can fill a plane enough to make money.
Both are smart companies. And FedEx is very sexy how they do things. UPS is straight meat and potatoes. Keep in mind UPS makes .09 on the dollar. FedEx makes .045 on the dollar. Last I checked anyway.
FedEx will open a gateway with no revenue stream. Put planes there and say fill them. It's not quite that drastic (they do have volume before they put a plane there)...but you get the idea.
UPS will not open a gateway until they have a sales force on the ground and assure themselves they can fill a plane enough to make money.
Both are smart companies. And FedEx is very sexy how they do things. UPS is straight meat and potatoes. Keep in mind UPS makes .09 on the dollar. FedEx makes .045 on the dollar. Last I checked anyway.
08-25-2017 | 12:18 PM
#44
Line Holder
Joined: Jan 2016
Posts: 31
Likes: 0
FedEx has and will always have a large % of their workforce as contractors. The trucking/ground side has grown a lot the last 10 years, but except for FedEx express, the entire ground side are contractors. I still remember when they bought American express in the 90's to better compete with UPS.
If my history is correct, FedEx started flying falcon 20'S and added a trucking fleet as time went on. UPS already had a trucking fleet, but bought airplanes to compete with FedEx for the overnight business.
Looking at the FedEx system, except for the holiday rush, FedEx contracts a lot of the feeder work, where UPS keeps it more in house or trucks packages to the planes.
Bottom line, they're still making money either way and the majority of the money is from the trucking side.
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If my history is correct, FedEx started flying falcon 20'S and added a trucking fleet as time went on. UPS already had a trucking fleet, but bought airplanes to compete with FedEx for the overnight business.
Looking at the FedEx system, except for the holiday rush, FedEx contracts a lot of the feeder work, where UPS keeps it more in house or trucks packages to the planes.
Bottom line, they're still making money either way and the majority of the money is from the trucking side.
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08-25-2017 | 12:27 PM
#45
Doing One Pilot's Job
Joined: Sep 2005
Posts: 7,893
Likes: 139
Originally Posted by Command
Expansion is new planes, gateways, routes.
It ain't as sexy as new gateways and airframes and routes, but it helps all the same. It also doesn't require CapEx, which keeps the beancounters happy...not that they really had any options since the Boeing Tree isn't dropping immediately available and firesale priced 767s or 777s on Sandy Springs.
08-25-2017 | 02:04 PM
#46
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Joined: Dec 2005
Posts: 674
Likes: 8
However, the biggest difference between Brown and Purple, or DHL, or Prime for that matter is....
UPS does not outsource their labor. They actually want employees. All the others put bids out for the lowest cost. They don't care who shows up at the door with the box. UPS doesn't think that way.
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UPS does not outsource their labor. They actually want employees. All the others put bids out for the lowest cost. They don't care who shows up at the door with the box. UPS doesn't think that way.
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FedEX Ground is non union, Prime is going to whipsaw the unions of the contract carriers.
edit: to point a IPA contract negotiator for Contract 2006 often points out UPS offered items for a relaxed scope clause.
08-25-2017 | 03:59 PM
#47
Gets Weekends Off
Joined: Oct 2014
Posts: 506
Likes: 0
From: Retired from APC.
https://pressroom.ups.com/pressroom/...6321563773-779
We charter more airplanes than we own:237 vs. 293
We charter more airplanes than we own:237 vs. 293
Last edited by FTFF; 08-25-2017 at 03:59 PM. Reason: typo
08-25-2017 | 04:12 PM
#48
Line Holder
Joined: Jun 2014
Posts: 330
Likes: 1
There are several different Midwest Fedex gateways that have changed. One example- they closed Grand Forks and opened Fargo, so net gain of zero. They are opening (or have opened) many new gateways as their ground system expands, but not all new gateways are growth.
08-25-2017 | 04:19 PM
#49
Banned
Joined: Sep 2015
Posts: 493
Likes: 0
From: MD-11 FO
Yes... that's true. But my point was and still is... UPS employees handle the logistics way more than any other company. We have close to 450,000 employees worldwide.
FedEx claims 300,000. I will wager a cold beer that 180,000 of them are contractors.
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08-25-2017 | 04:34 PM
#50
Gets Weekends Off
Joined: Oct 2014
Posts: 506
Likes: 0
From: Retired from APC.
Whatever. When I talk expansion, I'm talking the Air Side. Which in turn effects this hiring dream of 1000 new hires by 2020. Which is a pipe dream if one goes by decades old quotes from NURPS.
Expansion is new planes, gateways, routes. So UPS has opened maybe one or two gateways in the last decade? While FDX has opened dozens.
Expansion is new planes, gateways, routes. So UPS has opened maybe one or two gateways in the last decade? While FDX has opened dozens.
Seriously though, who cares if they said they would have/hire an arbitrary number of pilots by an arbitrary point in time. We got a good current going now which will start to accelerate with the retirements over the next few years. Everyone will benefit from that, yourself included. Not good enough?
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