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why isnt cargo doing as bad as legacy?

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Old 07-23-2008, 06:27 PM
  #31  
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Originally Posted by IntheBiz
uhh, NO. You need to show tremendous amount of startup capital. This is usually subsidized by manufacturers like airbus selling airplanes to anyone who asks, for a really low introductory price (JB, VA, Slimebus)


A tremendous amount of startup capital compared to a global cargo outfit? Lets say it's 50 million to start that airline. (That's not really a whole bunch of money in the business world.) 50 million might get you started in Texas at an overnight cargo company. Now what about the rest of the world? I believe FedEx serves over 500 cities in CHINA! Like I said, the airline biz is basically chump change compared to UPS, FedEx and yes DHL.
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Old 07-23-2008, 07:26 PM
  #32  
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Yeah startup capital would be problematic if you want to compete with UPS. Save your pennies, because youre going to need about 100,000 trucks, around 500,000 employees. Now that you have your delivery infrasturcture in place you can start on building one of the worlds largest airlines to feed that delivery network. You'll probably need around 600 aircraft both owned and contracted.

Then once you get around to sorting and delivering 16 million packages a day, and can serve well over 200 countries including every single address in North America and Europe, then you would be considered a prime competior to Big Brown.

However, dont plan on starting a price war with them unless your pockets are deep enough to pay off the US budget deficit.

Last edited by viktorbravo; 07-23-2008 at 07:39 PM.
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Old 07-23-2008, 07:59 PM
  #33  
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Originally Posted by sensesfail4049
I dont know to much about the aviation industry, ( I just like flying and aviation stuff) anyway I was wondering why cargo and charter airlines are not laying off pilots like the passenger airlines, and last time I checked there are cargo and charter airlines hiring pilots still. So why is it they are still going good and the passenger airlines seem like they are about to fall of the earth?
Not to burst your bubble, but Champion Air (Charter ops) and ATAshut down a couple months ago. Sun Country (another non sched) is having furlough issues.

Trade winds and Gemini Kitty Hawk (ACMIs )are in bankruptcy.

ASTAR and ABX who both fly contract for DHL are facing troubles

FedEx and Ups, while still making a little money are still feeling a some pain of High Oil and an slow economy.

Wouldn't say things are just great on the freight side/ Non Sched side either, just a little better than the PAX side depending on who you work for.

Last edited by RedeyeAV8r; 07-23-2008 at 08:07 PM.
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Old 07-23-2008, 08:28 PM
  #34  
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Originally Posted by RedeyeAV8r
Not to burst your bubble, but Champion Air (Charter ops) and ATAshut down a couple months ago. Sun Country (another non sched) is having furlough issues.

Trade winds and Gemini Kitty Hawk (ACMIs )are in bankruptcy.

ASTAR and ABX who both fly contract for DHL are facing troubles

FedEx and Ups, while still making a little money are still feeling a some pain of High Oil and an slow economy.

Wouldn't say things are just great on the freight side/ Non Sched side either, just a little better than the PAX side depending on who you work for.
Sorry you lost money FedEx, UPS only turned just short of 900 mil last quarter in profit.

After thirty four years in the freight business and being treated like some redheaded step child by every pax pilot to watch these guys line up and ask to work at FedEx and UPS is funny.
I used to get calls from UAL, DAL,AA pilots to recommend the kids so they could get some experience in freight so they could go to work for the real airlines.
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Old 07-23-2008, 09:56 PM
  #35  
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Originally Posted by RedeyeAV8r
Not to burst your bubble, but Champion Air (Charter ops) and ATAshut down a couple months ago. Sun Country (another non sched) is having furlough issues.

Trade winds and Gemini Kitty Hawk (ACMIs )are in bankruptcy.

.
Champion did just shut down over night, it was planned almost 3 yrs ago

Tradewinds in not bankrupt. At least not yet.
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Old 07-23-2008, 10:03 PM
  #36  
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Originally Posted by viktorbravo
Yeah startup capital would be problematic if you want to compete with UPS. Save your pennies, because youre going to need about 100,000 trucks, around 500,000 employees...
Not to mention thousands of yellow OSHA vests! You're talkin' some big dough here!
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Old 07-23-2008, 10:07 PM
  #37  
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Originally Posted by 757upspilot
Sorry you lost money FedEx, UPS only turned just short of 900 mil last quarter in profit.
Well, purple lost money but only because they paid for the re-branding of Fedex Kinko's to Fedex Office. If it wasn't for that quarterly charge they'd have posted a profit as well...
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Old 07-27-2008, 08:27 AM
  #38  
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Originally Posted by ⌐ AV8OR WANNABE
Well, purple lost money but only because they paid for the re-branding of Fedex Kinko's to Fedex Office. If it wasn't for that quarterly charge they'd have posted a profit as well...
Just to clarify, FedEx Express the Airline , which generates almost 60% of the revenue for FDX Corp, posted a profit, and revenues were up slightly, mostly due to our International operation.
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