Hey Fred, Lose Those Expensive Corporate Jets..We're Broke!!

Discussion in 'FedEx Discussions' started by MrFedEx, Jul 27, 2012.

  1. MrFedEx

    MrFedEx Engorged Member

    I did a bit of research today, and FedEx currently has 11 corporate jets, according to Airliners.net. Here is what is in the fleet:

    7 Learjet 45/40s

    3 Canadair Challengers

    1 Bombardier Global Express

    In addition, the site said that FedEx had constructed a new hangar/maintenance facility for the above aircraft at the Memphis airport directly across from the rental car lots. There may be additional jets stationed at Little Rock, AR, but I have not been able to get verfication of the type/number of aircraft at LIT.

    Hypothetically, of course, this is a very expensive operation, but Fred thinks it's worth it to fly all of those lawmakers around the world who make decisions on things like, oh,...the RLA status of FedEx. You know, little stuff like that. Whenever a politician flies with FedEx, guess who "escorts" them....a FedEx lobbyist. Hmmm...wonder why that is? You might like to know that Fred spent approximately $32 million fighting to keep his RLA exemption, and that he spent even more recently to make sure the RLA didn't receive rule changes that would have made it easier for Express employees to vote-in a union.

    Politicians have to "pay back" FedEx when they fly, but the figures I have seen indicate that they pay only about 10% of the real costs for the flight (that doesn't include the lobbyist, by the way). Think that just maybe a few campaign checks get written on these flights? Nah...

    So Fred, why are you spending all of this money when FedEx Express is on the ropes? Really, we're spiraling down so fast that you wouldn't believe it!! Yet you not only continue to operate this large fleet, but you built them a fancy new home too!!

    Hypothetically again, it appears that Mr Smith is not only a major hypocrite, but a liar of incredible proportions. That would make him a hypothetical A-hole. No, actually, he's the real deal.
  2. TUT

    TUT Well-Known Member

    I know they are used to fly high-ranking execs to talk personally to large customers. So it's not all politicians if one was thinking that, just sayin.
  3. Ricochet1a

    Ricochet1a New Member

    If Express wanted, they could fly individuals on commercial flights (put the top execs in First Class). If they were flying "teams" out, they could lease time through NetJets, for FAR LOWER cost than maintaining a fleet of exec jets.

    The Express exec jet fleet exists for one reason and one reason only - POLITICAL FAVORS.

    Politicos that fly on corporate jets are only required to pay what the going rate for a one-way First Class fare would be. The operating costs of these aircraft is in the neighborhood of $2500/hr. First Class fare is between $1500 and $3000 on average (depending on distance). Express takes a "loss" on every flight they provide. What they lose financially, they MORE than make up in getting favors in return from those who fly Fred Airways.
  4. TUT

    TUT Well-Known Member

    How do you categorize high ranking officials coming out to regions to speak with a base of large customers? Just wonderin.
  5. MrFedEx

    MrFedEx Engorged Member

    This rarely happens. As R1a says, the executive jet fleet's main purpose is to curry political favor. The jets are also used for emergencies and executive transport. Guess how many bizjets UPS has...none. McDonalds..two. Why not NetJets? Better yet, why not commercial airlines? I hear UPS execs fly coach, but I cannot vertify that.

    Remember, Express is on the verge of going under, and we need to save wherever we can. LOL.
  6. Ricochet1a

    Ricochet1a New Member

    They could fly out by utilizing time share via NetJets.

    The fleet EXISTS to provide political favors. The fact that Express has their execs use the jets is merely "dual use".

    Put another way... if there wasn't a need to provide political favors to the right politicians, the fleet WOULDN'T EXIST in the form it is in. There may be 2 or 3 aircraft at most. The fleet exists to provide political favors, the fact that execs use it on occasion is merely a side benefit to Express.
  7. Ricochet1a

    Ricochet1a New Member

    The operating costs for the Learjets comes to about $2300/hr

    The cost for the Challengers comes to about $4300/hr (I believe this figure includes costs of aircrew).

    The cost for the Global Express comes to about $3400/hr.

    Both the Challengers and Global Express are far larger than the "typical" business exec jet, thus their higher operating costs. I don't believe that the figures for the Lears and Global Express includes aircrew expense, which amounts to between $350 and $400 per flight hour (all costs incurred, including benefit costs, per diem, aircrew lodging, etc.).

    Most of these types of jets fly for between 300 and 600 hours per year (depending on utilization loads). If one uses an average of 500 flight hours per year, a cost for the fleet comes to:

    7x Lears = $9.1 million

    3x Challengers = $6.45 million

    1x Global Express = $1.9 million

    Total "guess-timate" annual cost of fleet = $17.45 million (this could be off, depending on just how much they fly)

    For a multi-billion dollar corporation, this is peanuts. This cost though, is almost purely aimed at getting political favor. The "charge" for politicos to use the fleet has to be deducted from the total operating expense, but I'd be surprised if this came to $5 million a year - leaving a net expense to Express of somewhere around $12 million a year.

    It would be interesting if Express broke out the cost of the fleet as a separate item in their annual operating report...

    So Fred ends up paying just over $10 million a year out of Express' pocket - in order to keep from paying the wage employees upwards of $500 million a year in additional wage and benefit expense.

    From a purely business standpoint, accepting an annual expense of $10 million to prevent incurring an expense of potentially upwards of $500 million a year is a proverbial no-brainer.

    Remember... Fred cares about you very much and will become very angry should one of his fellow execs suggest something to the contrary.
  8. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    UPS execs do fly coach.
  9. TUT

    TUT Well-Known Member

    Ok I can deal with it that they are dual purposed. To say execs rarely use it, I'm not sure about that. You got a few high up execs that use them often for Fedex business.

    As for why they do or don't have jets, it's their choice. I am for wokers making better wages etc, but at the same time I'm not totally for telling wealthy people they can't spend their money in certain ways.

    Why do they advertise so much when everyone knows who Fedex and UPS are?

    As for Express going out of business those are your words.

    As for UPS execs using coach. Sounds noble, are we talking all the way up, say the top 5 people at UPS as well?
  10. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    From what we have been told, everyone, including Scott Davis, flies coach.
  11. MrFedEx

    MrFedEx Engorged Member

    Kudos to them. That's called leading by example, a concept FedEx brass cannot seem to comprehend.
  12. Mr. 7

    Mr. 7 The monkey on the left.

    One thing I believe in is 'don't ask someone to do something you wouldn't do yourself'.
    No one is above anyone else. (And, I'm not a Jehova's Witness BTW)
  13. TUT

    TUT Well-Known Member

    Well I always took about people being equal was in the case there was a dispute that went to court, that the situation would be herd fairly and judge correctly. In terms of material things, I don't think because the neighbor has a nice Mustang, I should be given one to. Personally I think you are taking that statement out of context.
  14. Goldilocks

    Goldilocks Well-Known Member

    Maybe, but I do know for a Fact that I have delivered to a private Airport, that only has corporate planes for 3 companies. UPS being one of those companies. I could not find anyone to sign for a letter so I walked out on the tarmac and met 3 men in suits and they were executives with UPS flying out. All 3 men helped me find someone to sign before they took off. Very nice guys I must add.
  15. vantexan

    vantexan Well-Known Member

    If my neighbor works at the same company I do, does the exact same job, doesn't even do it as well as I do, but gets paid considerably more simply because he got there first, and will still be making considerably more 20 years from now, something's messed up. Official explanation from that company's management: we pay you and others who came in after him less because we're building up another part of our business that will allow us to pay you all less to keep more for ourselves. You are a valuable part of our team, Bravo Zulu and thank you for your sacrifice!
  16. MrFedEx

    MrFedEx Engorged Member

    UPS officially has no corporate jets.
  17. TUT

    TUT Well-Known Member

    Thank you for this reply. You are right in a righteous way. But what you say is very very Democratic and semi-communist. True equal is a communist ideal. In terms of old timers making more then new hires can ever make is very much a demo/union/rights/middle class issue were are fighting today. That is why I am pointed more democratically today vs republican ideally. America is going anywhere but up if future generations make less then past generations. Guaranteed loser.

    I'm hoping you start to see how you are playing both sides of the fence unknowingly. You want Fedex to pay you and treat you better. By being Republican based, you are going against what you want. You need your rights, you need unions to exist at the minimum to set a workable wage scale. You are like me, you are like all of us here. You need protections, you only want a fair wage and to live off that and raise a family. Having corporations/republican's run the show with what they are showing and telling us will not satisfy your needs at this time. The people that you are unhappy with at Fedex are Republican aligned, no?

    But about the neighbor doing the same thing but not as well but still getting paid more... Unless we go communist that can still happen in a democratic world as well. It's still a market party and in good times you have the option to leave and find the same job at a better scale. Hell I have some friends that even in these times have done it recently. The scenario you portray is also an issue of the employee, you still have to keep your options open, don't be totally complacent. In fact I went to a High School recently to talk about my line of work, one of the points I made clear to the students was this: 1. Don't be afraid to move, don't use friends and family as the reason why you won't. You need to maximize you and open your world. 2. When starting out in the field you want to be in, work a couple years to get the needed EXP and then jump jobs to get to the scale you want, that is the easiest way to get 10-25% pay raises, otherwise most companies will take advantage of your complacency and you won't get to where you want to be.
  18. TUT

    TUT Well-Known Member

    Google this for a laugh: UPS execs and corporate jets

    You know... How can you guarantee me that? How do you really know?
  19. MrFedEx

    MrFedEx Engorged Member

    No guarantees. However, having worked at UPS, I can assure you that they run a very tight ship. Not having corporate jets sounds completely believable for them. As Upstate said, they even have to fly coach. That's walking the talk.
  20. TUT

    TUT Well-Known Member

    So the Google results weren't a good laugh?

    I'm not sure who I would trust and I don't know if I really care if they have a company jet. They are an airline company.