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<blockquote data-quote="worldwide" data-source="post: 58855"><p>susiedriver, </p><p> </p><p>I think a comparision with the airlines is very appropriate; after all it is UPS Airlines that flies the cargo. It does not mater what the cargo is (people or boxes). What is the cost to fly an Airbus from point A to point B. The primary variables are the cost of fuel and the cost of labor. Can UPS pay less than the airlines for fuel due to their AAA credit rating? Of course-that is one of the benefits of being a well run company that is fiscally prudent. Both passenger and freight airlines use similar ground support operations so their is not a lot of differences there. </p><p> </p><p>Perhaps the real problem with the airline industry is that there are simply too many carriers that operate inefficient networks. Southwest and other "low cost" airlines have shown that you can make consistent profits hauling people. Look at the major carriers in Chapter 11-they have not adopted and changed with the times and changing business models and are now paying the price. </p><p> </p><p>"Personally I dont know why UPS doesnt just settle with the IPA. Pony up, and be done with it." </p><p> </p><p>So whatever the IPA wants, UPS should simply give to them? As a shareholder, UPS has a responsibiliy to me and all of the other shareholders to negotiate a contract that allows the company to have the flexibility to operate efficiently and make a profit. I'm not privy to the negotiations but it seems the major sticking points are pay related. I can only interpret that to mean that what the IPA is asking for would not be in the best long-term interests of the company and the shareholders.</p></blockquote><p></p>
[QUOTE="worldwide, post: 58855"] susiedriver, I think a comparision with the airlines is very appropriate; after all it is UPS Airlines that flies the cargo. It does not mater what the cargo is (people or boxes). What is the cost to fly an Airbus from point A to point B. The primary variables are the cost of fuel and the cost of labor. Can UPS pay less than the airlines for fuel due to their AAA credit rating? Of course-that is one of the benefits of being a well run company that is fiscally prudent. Both passenger and freight airlines use similar ground support operations so their is not a lot of differences there. Perhaps the real problem with the airline industry is that there are simply too many carriers that operate inefficient networks. Southwest and other "low cost" airlines have shown that you can make consistent profits hauling people. Look at the major carriers in Chapter 11-they have not adopted and changed with the times and changing business models and are now paying the price. "Personally I dont know why UPS doesnt just settle with the IPA. Pony up, and be done with it." So whatever the IPA wants, UPS should simply give to them? As a shareholder, UPS has a responsibiliy to me and all of the other shareholders to negotiate a contract that allows the company to have the flexibility to operate efficiently and make a profit. I'm not privy to the negotiations but it seems the major sticking points are pay related. I can only interpret that to mean that what the IPA is asking for would not be in the best long-term interests of the company and the shareholders. [/QUOTE]
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