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FedEx PPA Going Away
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<blockquote data-quote="MrFedEx" data-source="post: 4319042" data-attributes="member: 12508"><p>A possibility, although FedEx delivery tech is comparable with most other LTL carriers and UPS. I know there have been a lot of issues with mainframe MEM computer systems, but I think Amazon could handle that.</p><p></p><p>This is just speculation, but:</p><p></p><p>1. Bezos hasn't made the commitment to purchase aircraft yet. That's a big step, and reduces his flexibility and increases his exposure to loss in a downturn. By leasing an aircraft fleet he can dial it up or down at will. Airplanes are very expensive, and so is crewing and maintaining them.</p><p></p><p>2. FedEx wages are higher than Amazon. "Legacy" employees would be expensive until they retired. I would think most of the FedEx management team would disappear because they aren't Amazon-level competent. Think Dano.</p><p></p><p>3. Unions. FedEx pilots are ALPA, and Bezos is notoriously anti-union. He'd have a real fight trying to de-certify them. I've often referred to Jeff as a Democratic party Fred, because they run their businesses in similar fashion. Not employee friendly unless you're in IT or management.</p></blockquote><p></p>
[QUOTE="MrFedEx, post: 4319042, member: 12508"] A possibility, although FedEx delivery tech is comparable with most other LTL carriers and UPS. I know there have been a lot of issues with mainframe MEM computer systems, but I think Amazon could handle that. This is just speculation, but: 1. Bezos hasn't made the commitment to purchase aircraft yet. That's a big step, and reduces his flexibility and increases his exposure to loss in a downturn. By leasing an aircraft fleet he can dial it up or down at will. Airplanes are very expensive, and so is crewing and maintaining them. 2. FedEx wages are higher than Amazon. "Legacy" employees would be expensive until they retired. I would think most of the FedEx management team would disappear because they aren't Amazon-level competent. Think Dano. 3. Unions. FedEx pilots are ALPA, and Bezos is notoriously anti-union. He'd have a real fight trying to de-certify them. I've often referred to Jeff as a Democratic party Fred, because they run their businesses in similar fashion. Not employee friendly unless you're in IT or management. [/QUOTE]
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