Well, there go raises for next year.
"Sorry, guys and gals. One of our planes caught fire last year, so we're not going to be able to give raises this year because we had to buy 10 new air buses to replace it." *Gives self 150% raise*
Excellent, grasshopper. You have snatched the pebble from the hand of the master and reached understanding of the mystery that is FedEx. For
decades, they have been inventing excuses whenever and wherever they could, and this incident will undoubtedly be used, along with the TNT purchase etc.
May I remind everyone here that Uncle Fred and the upper management team were purchasing used passenger DC10s up until about 2005 and converting them to MD10s, at tremendous cost. We were told that these reinvigorated aircraft would last another 20 years and save us millions in operating costs and avoid the purchase of new planes.
Fast forward to now. The MD10s are going to the desert mothball fleet as fast as Boeing can deliver new 767s and 777s. This plane will be written-off because it would be retired soon anyway. The upshot is that MD10s were a terrible operational decision, and ended up costing huge money because they were fuel hogs when Jet-A was sky high.
What was UPS buying? New 767s and 757s, which saved them millions in fuel costs. And you're right about the raises too. No matter how horrible the decisions from Memphis, there is always money for big raises at the top.