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FedEx Ground Moving Via Express?
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<blockquote data-quote="59 Dano" data-source="post: 602536" data-attributes="member: 23516"><p>Digging up an old post to clarify some good points that were raised....</p><p> </p><p></p><p> </p><p>Express and Ground can have as many "ties" as they want with each other without issue. Of course, that's dependent upon what those ties actually are and what they accomplish.</p><p> </p><p></p><p> </p><p>There's a big problem with this (back to those "ties"!).</p><p> </p><p>If Ground is paying Express to fly packages, that's not much of an issue so long as it's being done properly. By that, I mean that Express is providing a service to Ground that Ground can't provide for itself. Also, it assumes that Express is invoicing Ground whatever the fee is, and Ground is remitting that amount to Express, and both are properly recording the transactions.</p><p> </p><p>The scenario that you present is a different story. </p><p> </p><p>Pulling the ol' switcheroo like that could get FDX in all sorts of trouble and would crush any hopes of future RLA classifications. Using Ground trucks to deliver Express freight --even though the fees have been paid from one division to the other-- when you've got Express trucks that are to be used for that purpose is an invitation for a headache.</p><p> </p><p>From the legal, regulatory, and legislative perspectives, it doesn't pass the smell test. While they may be operating as "separate" companies and jumping through the relevant hoops, there comes a point when it's hard to separate one from the other -- especially when one is doing the job that the other is also doing.</p><p> </p><p></p><p> </p><p>IMO, the most compelling reason that that wouldn't happen is the RLA. Technically, they'd be doing everything right, but hiring their own ground subsidiary to deliver packages from their own air subsidiary (which already has a dedicated fleet of trucks for that purpose) would be suicide. </p><p> </p><p>Even though I think politicians are the most stupid class of people in the country, I think they're capable of recognizing something that so blatanly flouts the spirit of the rules.</p><p> </p><p>Also, thank you for making a well-thought out post.</p></blockquote><p></p>
[QUOTE="59 Dano, post: 602536, member: 23516"] Digging up an old post to clarify some good points that were raised.... Express and Ground can have as many "ties" as they want with each other without issue. Of course, that's dependent upon what those ties actually are and what they accomplish. There's a big problem with this (back to those "ties"!). If Ground is paying Express to fly packages, that's not much of an issue so long as it's being done properly. By that, I mean that Express is providing a service to Ground that Ground can't provide for itself. Also, it assumes that Express is invoicing Ground whatever the fee is, and Ground is remitting that amount to Express, and both are properly recording the transactions. The scenario that you present is a different story. Pulling the ol' switcheroo like that could get FDX in all sorts of trouble and would crush any hopes of future RLA classifications. Using Ground trucks to deliver Express freight --even though the fees have been paid from one division to the other-- when you've got Express trucks that are to be used for that purpose is an invitation for a headache. From the legal, regulatory, and legislative perspectives, it doesn't pass the smell test. While they may be operating as "separate" companies and jumping through the relevant hoops, there comes a point when it's hard to separate one from the other -- especially when one is doing the job that the other is also doing. IMO, the most compelling reason that that wouldn't happen is the RLA. Technically, they'd be doing everything right, but hiring their own ground subsidiary to deliver packages from their own air subsidiary (which already has a dedicated fleet of trucks for that purpose) would be suicide. Even though I think politicians are the most stupid class of people in the country, I think they're capable of recognizing something that so blatanly flouts the spirit of the rules. Also, thank you for making a well-thought out post. [/QUOTE]
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