New Planes

[MrFedEx]

I know I have brought this up before, but isn't it interesting that "broke" Express is buying a crapload of new planes from Boeing. By the way, 767F's have been available for about 20 years, and other companies with much smarter management (think Brown) bought them new a long time ago. Smith invested hundreds of millions on rebuilding DC10 flying turds into MD10's and doubling-down on the DC10 family of fuel-guzzling trijets (DC10, MD10, MD11). At any other company, the execs would be either cut loose or executed for being so incredibly short-sighted and just plain stupid.

What a bunch of effing MORONS!!!!

 

[TUT]

You fail to see that they aren't broke and reporting healthy profits. However a division is under-performing to their expectations and are addressing it, sadly jobs will be lost in the process.

 

[UpstateNYUPSer(Ret)]

You fail to see that they aren't broke and reporting healthy profits. However a division is under-performing to their expectations and are addressing it, sadly jobs will be lost in the process.

How dare you try to inject facts and/or common sense in to a MFE thread?

 

[bbsam]

Let me scale it down for you. If I have $70 grand sitting around, I could buy a new truck and take the tax writeoff or I could distribute it to my employees and incur $7500 in additional Social Security taxes. Or I could debase myself to your perception of Ground contractors and just not pay any taxes and give them all 1099's at the end of the year. What do you think I would do?

 

[Mr. 7]

You fail to see that they aren't broke and reporting healthy profits. However a division is under-performing to their expectations and are addressing it, sadly jobs will be lost in the process.

 

[DOWNTRODDEN IN TEXAS]

Let me scale it down for you. If I have $70 grand sitting around, I could buy a new truck and take the tax writeoff or I could distribute it to my employees and incur $7500 in additional Social Security taxes. Or I could debase myself to your perception of Ground contractors and just not pay any taxes and give them all 1099's at the end of the year. What do you think I would do?

Option 4..get new ID and name then move to another country with the rest? Just sayin...lmao

 

[bbsam]

Option 4..get new ID and name then move to another country with the rest? Just sayin...lmao

The rest meaning who?

 

[DOWNTRODDEN IN TEXAS]

The rest = Cash. Money. Moolah. Dinero. Chedda. Greenbacks. Dead Presidents.....

 

[59 Dano]

You fail to see that they aren't broke and reporting healthy profits. However a division is under-performing to their expectations and are addressing it, sadly jobs will be lost in the process.

That doesn't matter. The whole entire corporation is supposed to operate for the direct financial benefit of the Express employee. At least that's what I've read on this forum.

 

[vantexan]

That doesn't matter. The whole entire corporation is supposed to operate for the direct financial benefit of the Express employee. At least that's what I've read on this forum.

At last! I knew you'd come around!

 

[MrFedEx]

That doesn't matter. The whole entire corporation is supposed to operate for the direct financial benefit of the Express employee. At least that's what I've read on this forum.

UPS management, which was forward-thinking, saw the cost savings associated with twin-engine, two crewmember aircraft a long time ago. As I said, instead of being foresighted, Fred doubled-down on the DC10 family of jets....a major mistake. Now, he's going to have to eat his words and take a big loss on all of those planes that will be scrapped or mothballed. Remember, these aircraft (especially the MD11's and MD10's) were going to be "20 year airplanes", words that justified the enormous investment in rebuilding already old DC10's.

As usual, you miss my main point, which is that upper management made an incredibly bad series of decisions, for which nobody will be held accountable. Instead, they will seek the additional operating revenue from us, the hourlies. As late as 8 years ago, FedEx was still buying all the DC10's they could get their hands on, spending millions to convert them over from PAX to cargo configuration. Dumb, stupid, and incredibly short-sighted.

As Head Shill, I know it's your job to paint everything upper management does as "for the business", or "that's just how business operates", blah, blah, blah. They screw us (again), and it's "just business". My, what an accommodating employee you are just laying there and letting FedEx beat you to a pulp over and over again, doing nothing but agreeing with your tormentor. Hell, you'd probably even provide them with a bat with which to hit you.

Bottom line: FedEx is taking full advantage of it's non-union employees once more, simply because it can. That's wrong, Mr. Shill.

 

[Ricochet1a]

This article was linked under the FedEx news section of this site, but I think it warrants closer attention in the general forum:

FedEx Hints At Future Course Through Grim Asia, U.S. Growth: Analyst - Forbes

A few months from now, FedEx promises to layout the roadmap to restructuring its express business, the company’s largest division that has lagged in recent years.

Savvy investors interested in FedEx’s future course through the weak global economics—particularly the troubling situations in the U.S., Europe and Asia—should pay attention to an recent adjustment in its aircraft order, says Citi analyst Christian Wetherbee in a new client note this morning.

FedEx decided to replace an order of four Boeing 777s with 19 smaller Boeing 767s, suggesting a dimmed outlook on the continued growth of long-haul intercontinental lines, like Asia to the U.S. The move to the 767s would also allow greater flexibility throughout FedEx’s fleet; the planes would also be able to fly on international routes connecting parts of the U.S., Latin America, Asia and Europe.

“We view the move as another sign that FedEx is backing away from its earlier strategy of going big with a bet (through the 777s) on the continued growth of long-haul intercontinental lanes,” Wetherbee says, who rates the stock as Buy with a $105 price target.

Shares of FedEx rose 0.3% to $91.82 in early morning trading. FedEx is the world’s second largest shipper, and is often cited a bellwether for the broader economic climate. It competes with United Parcel Service, the largest shipper, and Deustche Post, which owns DHL. Its performance is frequently compared to other companies with large transit routes, like Union Pacific and C.H. Robinson.

The stock has outperformed the S&P 500 since 2009, rising 69% compared to the large cap index’s 49%. The stock trades at 14 times trailing earnings, making it cheaper than it has been in the past 10 years.

FedEx’s express business volumes and margins declined during the recession, and then failed to recover as quickly as other parts of the business. FedEx first announced that it would restructure the segment in March, and promised to fully layout its plans by October.

 

[Ricochet1a]

It is obvious that 19 B767s have a greater cargo carrying capability than 4 B777s. What the article missed (completely) is that Express is radically reorganizing its line haul capability. The "bet" is that international volumes between Asia and the US will drop (and stay low, thus the cut B777 orders) and that the line haul system in the US needs to be radically altered to account for expected lower volumes within the US domestic market for the foreseeable future (the B767s to accelerate replacement of MD10s).

FedEx has already made its bet regarding the US air cargo market - it is shrinking and won't come back.

So the same question is continually begged - "Why in the hell is FedEx pushing its Couriers for "leads", when the company itself has already made a commitment to a smaller Express?"

The answer has already been given.

I also mentioned before that FedEx stock is seen as a good bet - and will most likely start to skyrocket starting October of this year, through 2013.

Since your fellow wage employees won't organize, you'd might as well buy the stock and make some money that way - you definitely won't be making money with your labor while at Express.

 

[59 Dano]

UPS management, which was forward-thinking, saw the cost savings associated with twin-engine, two crewmember aircraft a long time ago. As I said, instead of being foresighted, Fred doubled-down on the DC10 family of jets....a major mistake. Now, he's going to have to eat his words and take a big loss on all of those planes that will be scrapped or mothballed. Remember, these aircraft (especially the MD11's and MD10's) were going to be "20 year airplanes", words that justified the enormous investment in rebuilding already old DC10's.

As usual, you miss my main point, which is that upper management made an incredibly bad series of decisions, for which nobody will be held accountable. Instead, they will seek the additional operating revenue from us, the hourlies. As late as 8 years ago, FedEx was still buying all the DC10's they could get their hands on, spending millions to convert them over from PAX to cargo configuration. Dumb, stupid, and incredibly short-sighted.

As Head Shill, I know it's your job to paint everything upper management does as "for the business", or "that's just how business operates", blah, blah, blah. They screw us (again), and it's "just business". My, what an accommodating employee you are just laying there and letting FedEx beat you to a pulp over and over again, doing nothing but agreeing with your tormentor. Hell, you'd probably even provide them with a bat with which to hit you.

Bottom line: FedEx is taking full advantage of it's non-union employees once more, simply because it can. That's wrong, Mr. Shill.

Reading your opinion about the DC10's is just as interesting the 245th time as it was the 1st time.

If you had any business sense at all maybe you'd be asked to contribute it somewhere.

 

[MrFedEx]

Reading your opinion about the DC10's is just as interesting the 245th time as it was the 1st time.

If you had any business sense at all maybe you'd be asked to contribute it somewhere.

I have enough business sense to see when someone (or some company) makes a stupid series of decisions. Perhaps I have more knowledge of the aircraft industry and market than you do. I'll make it simple for you. Boeing has always made a quality product, and charged accordingly. Once they bought MD, they wisely dumped the entire product line ASAP. Fred and friends bought on the cheap and then invested heavily to bring the DC10's up to MD11 standards...a dumb move. The 767 carried almost as much and burned much less fuel. It was also more reliable and easier to maintain.

UPS, smart company that they are, invested heavily in 767's and 757's...way before FedEx figured it out. Now, FedEx has an entire fleet of "20 year airplanes" that were obsolete within 7 years. Really dumb. And expensive.

You are welcome.

 

[59 Dano]

I have enough business sense to see when someone (or some company) makes a stupid series of decisions. Perhaps I have more knowledge of the aircraft industry and market than you do.

And that's why you're stuck in a job that you personally hate, working for a company that you don't respect, and for a man that you absolutely abhor. Because of your good sense.

 

[MrFedEx]

And that's why you're stuck in a job that you personally hate, working for a company that you don't respect, and for a man that you absolutely abhor. Because of your good sense.

I only stay at FedEx because my sideline business does not have benefits. My good ethics compel me to fight against the Smiths of the world.

 

[59 Dano]

I only stay at FedEx because my sideline business does not have benefits. My good ethics compel me to fight against the Smiths of the world.

LOL, riiiiiiiiiiiiight!

 

[MrFedEx]

LOL, riiiiiiiiiiiiight!

Think whatever you want. I have Smith morally and ethically repulsive, and if I reach just one person that makes me happy.

 

[59 Dano]

I have Smith morally and ethically repulsive,

And you intentionally increase your number of lates because of your high moral and ethical standards!

LOL!! You're a hoot!