Operation Aerosmith (Amazon)

Discussion in 'UPS Discussions' started by Scuba Steve, Oct 24, 2015.

  1. Scuba Steve

    Scuba Steve Active Member

    Could Amazon be gearing up to compete against UPS, and FDX in the air? The cities mentioned all have Amazon fullfillment centers....

    There is supposedly another operation called "Alpha" that is using Northern Air Cargo in the Pac West.




    "For the first time since 2009, ABX Air will again be performing regular flight service out of Wilmington, Ohio (ILN). AGS (Airborne Global Solutions) has entered into a contract to operate a small system moving cargo between domestic points. It begins on September 14, 2015, utilizing both ATSG carriers on a 7-day-per-week schedule. This system will begin by operating two B767-200 aircraft on routes out of Ontario, California (ONT) and Allentown, Pennsylvania (ABE) through Wilmington and expand a few weeks after initial start up to add B767-200 aircraft operating from Tampa, Florida (TPA) and Oakland, California (OAK). We are under a strict Non Disclosure Agreement with AGS's customer; therefore this business is being referred to as "Aerosmith." ABX will operate the ONT-ILN-ONT route beginning September 14 and the TPA-ILN-TPA route beginning September 28. LGSTX and AGS are handling the ground, limited sort, loading of airplanes, and the truck inbound and outbound activity here in ILN and also managing the out-base operations. We are very excited about this opportunity, and while this operation is currently being done on a short term contract, we are looking to do everything that we can to make it a success and have it extended and hopefully expanded over time."



    http://wnewsj.com/news/4623/lgstx-services-moves-cargo-for-aerosmith
     
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  2. Number24

    Number24 #24

    Who cares?
     
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  3. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    YAWN
     
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  4. Geo926

    Geo926 Active Member

    Next
     
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  5. Scuba Steve

    Scuba Steve Active Member

    The Pilot group cares... Volume you are losing...


    Wow, there use to be a day when UPS'ers cared about the customer and customer service. With your replies no wonder there are layoffs and temporary positions more than ever... I'm sure with your skill set you can find other work at the same rate...

    With the post office going after more parcel business taking away your market share , FDX growing, putting in more hubs around the country and taking away your market share, I'm sure your pensions are safe... If you make it to retirement without getting laid off.....
     
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  6. Turdferguson

    Turdferguson Guest

    Layoffs ? I haven't seen any.
    Lack of caring has to do with yet another Amazon is taking over and putting everyone out of work thread
     
  7. Scuba Steve

    Scuba Steve Active Member

    Search Layoffs on here.... Over 12 pages of threads. There use to be a day when UPS never laid off. I'm sure that was long before you.

    It's not just an Amazon out of work thread. It's about other companies growing such as ABX and Northern Air Cargo in this thread. The USPS gaining market share in small package, FDX Expanding at a pretty good rate. They put in three new ground hubs just in Florida this year. All close to either Amazon or new Walmart DC's. While you say "yawn" or "next"....
     
  8. Turdferguson

    Turdferguson Guest

    12 pages on seasonal layoffs is your big talking point?
     
  9. Orion inc.

    Orion inc. I like turtles

    The post office never makes a profit and is the red. Amazon doesn't make a profit and is trying to grow too much, too fast and in too many industries. FDX ground has nowhere to go but expand and go up. They've only been in the segment for 15 years. Of course they'll grow hubs.

    What you really need to look at is profit per piece. How much profit are these shipping companies making per piece of volume. Also look at their debt and what they actually own. When compare those numbers, ups is doing very well.

    Amazon is going after IBM, Google apple etc in the cloud storage business as well. They're going in so many directions and they will spread themselves too thin. Jeff Bezos already has said he doesn't know if Amazon is one of those long term type companies.

    Growth for growth and without huge profit margins doesn't signal to a company that will put others out of business. It could go bad in the long term for Amazon if they don't start showing better profits for their shareholders.
     
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  10. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    So your plan is get more zero profit packages?
     
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  11. FrigidFTSup

    FrigidFTSup Resident Suit

    What do layoffs have to do with customer service?
    ABX is hardly growing. They're a second tier cargo airline whose almost sole job is to transport DHL packages from Europe. Northern Air Cargo's specialty is transporting cargo between rural airports in Alaska. Unless they've lost their mind and decided to dump extremely high paying oil contracts for Amazon packages, I'm not concerned.
    Good for them. Meanwhile Amazon keeps building distribution centers near airports where UPS is king. You think they're putting all their eggs in one basket? Forget about it.
     
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  12. Scuba Steve

    Scuba Steve Active Member

    The USPS never makes a profit is incorrect. They also never have gone after small parcel volume either as they have now. "USPS was profitable by $313 million in the second quarter of fiscal 2015, and operational revenue was up $233 million over the same period last year, the agency announced Friday. The growth was due in part to the temporary emergency rate increase on postal products that took effect last year, but also aided by a 14.4 percent increase in package volume."

    http://www.govexec.com/management/2015/05/usps-continues-grow-revenue-while-losing-money/112261/

    FDX Ground does not have the payroll or vehicle overhead that UPS does. They are expanding to cut down transit time and increase profitability with large volume shippers.
     
  13. Scuba Steve

    Scuba Steve Active Member

    How do you know they are zero profitable packages? The USPS is carrying quite a few of Amazon Packages. I just received today (Sunday) a good size Amazon shipment via USPS. I have a feeling Sunday's will be in your working future.

    "For the sixth consecutive quarter, the U.S Postal Service turned an operational profit when accounting for its controllable costs. But the agency still lost a total of $1.5 billion from January through March due to outstanding liabilities.

    USPS was profitable by $313 million in the second quarter of fiscal 2015, and operational revenue was up $233 million over the same period last year, the agency announced Friday. The growth was due in part to the temporary emergency rate increase on postal products that took effect last year, but also aided by a 14.4 percent increase in package volume."
     
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  14. Scuba Steve

    Scuba Steve Active Member

    Poor customer service and lack of caring about volume sends volume elsewhere. Posts on hear really reflect an attitude of we're UPS and we will always be number one. Who cares if Amazon drops us. You think customers don't see what you post here? Bitching about paper from Staples? The USPS small package volume grew 14.4 percent and had an operational profit of $313 million. A lot of that volume was UPS'....

    Yes the last ATSG earnings statement showed stagnent growth Did you read that ABX has not used the KILN hub since 2009? They are now for these shipments. They recalled pilots along with ATI for these flights. This contract just started in last month (September) These are flights they currently were not flying and they are doing them 7 days a week. They are hiring. Remember when UPS restarted the airline in 1982? Using Ryan, Orion and Evergreen to fly until getting the IPX operating certificate then forming the airline in 1988. Amazon could do the same thing. Prior to the DHL deal with ABX, ABX was third behind FDX and UPS domestically.

    Northern Air Cargo is running KSBD-KBFI-KBOI-KSBD

    Amazon is not building near airports. They are in the vicinity of airports. FDX just built a 300,000 sf facility in Davenport Fl. There will be two million sf Walmart DC's right down the road and a million sf Amazon facility a few miles away. FDX is positioning while some here say "yawn"....
     
  15. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    Ahhh troll as I figured.
     
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  16. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    image.png


    The pie is growing quickly. There's plenty of work to go around.
     
  17. Scuba Steve

    Scuba Steve Active Member

    They bought RPS in 1998 with existing hubs. Count that and you have over 30 years since RPS started in 1985. The growth right now is positioning hubs to reduce transit times using cheaper labor and lower overhead with contractors owning trucks.
     
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  18. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    Ok. I'll play.



    What's your plan?
     
  19. Scuba Steve

    Scuba Steve Active Member

    How do you figure? You said the Amazon business isn't profitable. I said the USPS grew small parcel volume over 14% and posted a $313.million operational profit. The pensions are what is hurting them right now.

    I thought you would be able to do better than "Ahhh troll as I figured" ...
     
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  20. Scuba Steve

    Scuba Steve Active Member

    Amazon, Staples, Wayfair, and others on here they are customers who pay your salary right? If you have no volume, do you have a job? All I'm saying is some attitudes on here show a different company than what UPS was. You don't seem to care. UPS is losing the advantage they had.

    5 years ago USPS was doing very little in small parcel. Now they are growing volume and making profit doing it. They are delivering 7 days a week. We wouldn't have said this a couple years ago. They are doing it for less than UPS and honestly the service is equal if not better. I received my Amazon package a day early on a Sunday.... USPS tracking is now very close to FDX and UPS.

    FDX is working towards the same thing. They have ground and express hubs in the US side by side. You will see a change in the not so distant future with the hub growth they are doing on the ground side. You will see FDX ship express on ground . They have not done this to maintain their position on labor laws and to build hubs to decrease transit times. This will allow them to increase profitability greatly using the same system as UPS shipping air without seeing a plane. The advantage is FDX ground uses contractors and doesn't have the overhead of equipment UPS does.

    I'm not trolling. I'm just saying while your saying there is plenty of work to go around and "yawn", your competition is chipping away at you.
     
    Last edited: Oct 25, 2015