FedEx ready to cancel Boeing jet orders?
Is FedEx (FDX) blackmailing Congress or simply playing hardball? Either way, the shipping company is not making things easy on lawmakers these days.
FedEx is steamed about a bill working its way through Congress, and is threatening to cancel billions of dollars in new plane orders from Boeing (BA) as a result, according to the Wall Street Journal.
The bill would make it easier to form unions at FedEx, which has been nearly union-free to this point. That's very different from rival UPS (UPS), where more than half of the employees are union members.
Upset by the threat of more unions, FedEx is fighting back by clamping down its pocketbook. It might cancel orders for up to 30 new cargo planes from Boeing if lawmakers pass the bill. That would have been a $7 bilion purchase.
"It is exceedingly unlikely that we would purchase those airplanes," a FedEx spokesman told the Journal. He makes the claim -- a quite flimsy one -- that those planes become unnecessary when the bill cripples the company.
Predictably, unions have fired off a strong response. The International Brotherhood of Teamsters called FedEx irresponsible and shortsighted.
"It is a slap in the face to Congress and the American people," said a Teamsters executive. "The bill should be evaluated on its merit -- not upon the threat of FedEx to fire another torpedo through the American economy."
And a House Democrat who co-sponsored the bill says FedEx is just "huffing and puffing."
Normally, Boeing stays out of these squabbles. But $7 billion is a motivating figure, and analysts think Boeing will start lobbying Congress aggressively on FedEx's behalf. After all, Boeing needs every dollar it can these days as customers struggle for financing to buy more planes.
To get back on topic, Fred is much more concerned about losing the MD11 than any pilots. If there is an FAA directive grounding it or requiring major modifications, he's going to be upset since FedEx operates more of them than anyone else. It would cost him money.
As I've found out more about this accident, I now know that FedEx recommends landing it automatically (CAT3) in adverse conditions. The computer can make corrections faster than any human, and in a wind shear would have firewalled the throttles and done a go-around. If you look at the pictures of the engines the thrust reversers look like they were deployed. In other words, the pilot was probably hand-flying the aircraft, was set-up to land, and could not have reacted quickly enough given the poor handling characteristics of the MD11 in such conditions.
From what I've heard, the MD11 is perhaps the most difficult commercial aircraft to control in adverse weather. Even the world's best pilot cannot overcome an inherent design flaw.
Again, this is all speculation, but the notorious reputation of the MD11 appears to finally be catching up to it.
FedEx all the way,
I sincerely applaud the passion you have for your husbands employer, as there are many spouses out there that don't take the time to get involved like you do. I not being sarcastic when i say that, im sincerely glad you believe in something that strongly.
But what I don't understand is how FedEx is "standing up" to the unions by threatening to take their business overseas? The impression I get (mind you, just an impression), is that Fred is trying to blackmail the government and trying to make the government stand up to the unions involved instead of trying to do this on his own.
If Fred, as you said, is not anti-union, then why is FedEx so afraid of the Teamsters?
Why not invite the Teamsters into FedEx and let the employees decide? I'm not talking just the drivers and handlers, but every one at FedEx, including your hubby.
Then if the employees decide that they don't want to unionize, then Fred has the paperwork necessary to tell the Teamsters to go to hell, correct?
I'm honestly not trying to start a war with you, im just trying to understand some of Freds logic in this situation.
Youre welcome, and you still continue to prove my point, THANK YOUThank you for calling me a dumb broad.
Have a great day.
Later,
Losing the plane instead of the pilots - WOW! You really think the worst in people.
My sincere condolences to the families of the pilots - may god be with you in these hard times.
As for MrFedEx I believe that was very wrong.
Losing the plane instead of the pilots - WOW! You really think the worst in people.
My sincere condolences to the families of the pilots - may god be with you in these hard times.
As for MrFedEx I believe that was very wrong.
Youre welcome, and you still continue to prove my point, THANK YOU
Newark, 1997. Look familiar?
This surprise's you?Nice to see MrFedex could pass along condolences when a UPS cargo plane went down. When it's Fedex it's all about the evil cost cutting tactics of the company. Pathetic but not surprising.
Nice to see MrFedex could pass along condolences when a UPS cargo plane went down. When it's Fedex it's all about the evil cost cutting tactics of the company. Pathetic but not surprising.
and the phony college degreesNice to see MrFedex could pass along condolences when a UPS cargo plane went down. When it's Fedex it's all about the evil cost cutting tactics of the company. Pathetic but not surprising.
and the phony college degrees