FedEx To Close Indy Hub?

[MrFedEx]

The rumor mill is strongly suggesting that FedEx will close it's Indianapolis Hub in the near future. All of the Indy volume would be diverted to Memphis, cutting a number of flights and a large number of employees. I'm assuming that everyone would be offered jobs in Memphis so the "No Layoff" policy could be followed, but how many people are going to move so far for a low wage job? Get ready for a lot of late freight.

 

[Channahon]

Rumors are just that rumors, however, sometimes they come true. Based on today's economy, companies will do whatever they need to do for cost cutting initiatives.

I remember when Indy Fed Ex opened, and UPS countered the service levels by adding expedited ground feeds and enhanced time in transit, to either match or exceed Fed Ex

That's how it is in today's competitive market for volume and shareholder value.

 

[Boxjockey1]

We can only hope. No matter what this would be good pr for UPS. I can just hear sale's now, ( you know Fed ex just closed their Indy hub, and I also hear they are going to raise their rates. Why don't you come over to the good guys at UPS and let us handle your business?) Either way I think the public would see this as a sign. Anytime something closes or shut down people usually percieve it as bad. However wall st. may not. I could be a good boost for their stock. It is hurting also, due to IRS finding, but you probably already knew about that. Have a great day

 

[COSMOS]

Pretty doubtful... I believe they just signed a lease through 2028 and wrapped up an expansion which added 14 gates.

 

[MrFedEx]

COSMOS,
Can you cite a source? It seems odd to sign an expansion deal when volumes are at a 10-year low. The rumor has circulated before, possibly by management to create worker insecurity and compliance. It isn't like FedEx to create extra capacity...they usually keep using inadequate facilities until there's a meltdown that forces them to expand. For now, I'm still branding the rumor as credible.

 

[COSMOS]

From what I heard they are ahead of schedule. The expansion will make it possible to route more flights through the main hubs instead of smaller ones like DFW, ORD and EWR.

 

[MrFedEx]

I hope you're right and that it doesn't close. With volumes down, you know they're considering all options.