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<blockquote data-quote="tieguy" data-source="post: 83771" data-attributes="member: 1912"><p>Seems to have been some concern about revenue growth not meeting the plan and domestic air express being down 3 percent. </p><p></p><p>Fdx explained it by saying they move that 3 percent "less profitable air" into the ground segment. Interesting strategy. </p><p></p><p>Improves air margin. Improves ground margin. Inflates ground growth numbers. </p><p></p><p>Some had defined Fdx's term of revenue management as meaning they would cherry pick high profit packages. Logic would tell you that the cherry picking stage is done. It now appears Fdx will help manage revenues by steeing volume to different segments they think can most profitably handle it. </p><p></p><p>So while domestic express volume was down 3 percent overall express margins improved to 8.4 percent. </p><p></p><p>Question on the conference call which was never answered. How much did the movement of express volume to the ground segment increase the 11 percent reported gain in ground volume. Fdx rep sidestepped the question by saying they had not done the analysis. There is absolutely no doubt in my mind they did the analysis and they know the answer to that question.</p></blockquote><p></p>
[QUOTE="tieguy, post: 83771, member: 1912"] Seems to have been some concern about revenue growth not meeting the plan and domestic air express being down 3 percent. Fdx explained it by saying they move that 3 percent "less profitable air" into the ground segment. Interesting strategy. Improves air margin. Improves ground margin. Inflates ground growth numbers. Some had defined Fdx's term of revenue management as meaning they would cherry pick high profit packages. Logic would tell you that the cherry picking stage is done. It now appears Fdx will help manage revenues by steeing volume to different segments they think can most profitably handle it. So while domestic express volume was down 3 percent overall express margins improved to 8.4 percent. Question on the conference call which was never answered. How much did the movement of express volume to the ground segment increase the 11 percent reported gain in ground volume. Fdx rep sidestepped the question by saying they had not done the analysis. There is absolutely no doubt in my mind they did the analysis and they know the answer to that question. [/QUOTE]
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