59 Dano
I just want to make friends!
On what planet?
FEDEX losing Amazon business NOW?
- Thread starter dmac1
- Start date
On what planet?
59 Dano
I just want to make friends!
Actually, it's a contractor used by Amazon that's paying the pilots, but you're right. I don't know why it's so hard for others to see that point. Amazon isn't immune to economics.
Another way to get into that field is to take advantage of the program created by FedEx that snags pilots right out of college in order to get them into the FedEx system and on a path to a career with the highest pilot wages in the cargo air industry and nearly the highest wages in all of aviation.
Guess which airline can't afford that? The same one that has pilots moving on as soon as they can! Oddly enough, they also have staffing issues, morale issues, and safety issues that their competition doesn't.
And yet they're still flying.
Interesting that FedEx does that rather than poach from other airlines. Seems I read years ago that pilots were knocking down the door trying to get in.
XEQaF
Well-Known Member
Interesting he mentions that X pays the highest wages for pilots yet their other models want to lower the costs associated to last mile delivery ie Ground drivers. Why do they continually take a hit on all that is air?
It's only a matter of time before a competitor can iron out the wrinkles in their operation and one the size of Amazon can simple throw money at an issue to improve on it, but will they?
It's only a matter of time before a competitor can iron out the wrinkles in their operation and one the size of Amazon can simple throw money at an issue to improve on it, but will they?
On just about every planet when most of the costs are fixed, with very little of the expense directly related to the actual number of packages. The building costs the same even if 2% fewer packages pass through, A courier doesn't really cost 2% less if he delivers 2% fewer packages, vehicle costs, utilities, benefit costs, , etc are only affected a miniscule amount if volume drops 2%. So if revenue drops by 2%, as it would with 2% fewer packages, most of the revenue loss comes directly out of profit. Not all, but most, and it should take less than a high school education to realize it.
59 Dano
I just want to make friends!
Poaching from another airline will get them a qualified jet pilot today who will serve them for a few years until he retires. The developmental program will get them someone who will soon be flying feeders, and then jets, over a 30 to 40 year career with the company. It's a long term strategy that arose from the fact that the growth in available pilots isn't quite keeping up with the demand for flights.
59 Dano
I just want to make friends!
That's exactly the kind of explanation you'd get from someone with less than a high school education and no experience in Express ops. A courier may not work work 2% fewer hours in a linear correlation with a 2% drop in his package count, but we get around that by cutting a P1 route and moving the pickup couriers' start times back by 10 minutes each. And that's for the smallest of stations; larger stations would take larger measures. Otherwise, we wouldn't make our PFT/E targets, which don't fluctuate with volume.
I don't begrudge you your less-than-high-school-education logic, but the Express solution to a 2% drop in revenue is to cut expenses by 3%.
So you admit when a competitor cuts into FedEx revenue it's the couriers who have to bite the bullet? Thank you.
59 Dano
I just want to make friends!
No.
This is exactly what I expect from you. Most Amazon packages go to ground, so your cutting express couriers hours has no bearing.
Not only that but you completely missed the point that most of fedex costs are fixed, and only a small portion goes to wages. You focused on the irrelevant details all the time, and the major concepts sail right over your head. Sorry I have to point this out, because you might be a decent person, no matter how smart you are or aren't.
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MAKAVELI
Well-Known Member
I think that depends on location.
Only a small portion goes to wages? Almost half of revenue goes to wages.
Cactus
Just telling it like it is
Liar.
59 Dano
I just want to make friends!
Idiot.
floridays
Well-Known Member
Are you a recruiter?
floridays
Well-Known Member
Then elaborate, this should be interesting.
If 'almost half' goes to wages, then MOST goes to fixed costs. A tiny % goes to the actual route driver who gets the package to Amazon's customer
And since ground is more profitable, a smaller % goes to the driver, and most of packages Amazon tenders to fedex is sent by ground, and wages/benefits paid to ground are lower than express, the drop in profits is even greater than if it would be if you use 'average' wages' across the corporation.
And out of all the wages paid by express to sorters, supervisors, pilots, loaders, maintenance, cutting courier hours is only a tiny % of revenue. Fedex is not going to recover a 2% drop in total revenue by cutting just courier hours by 2%, even if a 2% drop in total package count correlated directly to a 2% drop in hours needed to deliver packages. A 2% drop in package count MIGHT save 1% of the total time a driver spends during a day. Going from 150 stops a day down to 147 might save a few minutes in a delivery driver's day, but saves nothing for the driver who drove the trailer to the terminal, or the sorters, or the terminal manager, or pilot, and so on. And simple math, for you Dano, dictates that since MOST costs are fixed and not directly related to volume, MOST of the 2% decline in revenue MUST come from profit. A 2% drop in total revenue does NOT equal a 2% decline in profit.
floridays
Well-Known Member
I think fedex makes decisions globally, It would help if you could understand South Central doesn't dictate.
I understand you are a golden gate'er,
it was just my way of poking a guy in the eye, after I wiped away egg to find his eye.
No one else will understand this, but you do Niccolo.
Cactus
Just telling it like it is
Why don’t you try telling me that couriers aren’t the one’s who always have to make sacrifices when things slow down even a little. Someone from Memphis always gets on Frontline and whines about revenues are down and “we have planes to pay for etc.” Yet Fred rewards the top brass still the same as if nothing changed. Now bite me.
