Moneybags

No. You cannot.

Rock

We do. But it’s a very small fraction of what we used to carry. Your anecdotal observation from the cockpit doesn’t trump the factual data from both FedEx and the Post Office that our postal volumes have been reduced to a point where we no longer make a profit flying them. The Post Office says the mail it ships by air has been reduced 95%. They are saving over $1 billion as a result. That was the mail we shipped. In December 2023, Fedex reported that as a result of that decline, we were losing $400 million. There’s no debate on that. It’s simply factual data. And when it reported that data, it was stated “I think we’ve been very clear that it will take quite a significant change in contractual terms and agreement to renew that (postal) contract.” Well the Post Office is now required by federal law to maintain the reforms it started, so rather than continue to lose money, FedEx decided not to renew the contract. Since it had become a money loser, that seems like a good thing to do.

Reese

From Marty's podcast...
"That's a good question. It's very difficult to actually quantify because the contract with the Postal Service was we need to service these, I believe, with 78, don't quote me on that number, a number of cities that we have to service for their two day freight. We do not fill up the airplane with postal freight. So FedEx can put their two day on it. They can put anything deferred or something that's deferred for a later delivery on those planes. So my first question to my group was, do they designate specific postal flights? Is there a numbering system? The answer to that is no. So it's going to be very difficult to tease out the data from just postal versus our two day and other freight that goes on those airplanes. But, going back to pre-postal, I can imagine the biggest impact will be the day flying in the 757 and the Airbus domestically. That day flying will probably be reduced quite dramatically starting in October."

So....seems like you're not right in your assumption. Seems like there's still the possibility of a signficant portion of day flying remaining for 767. Not all day flights are solely for the purpose of postal. That was the case in early 2000's probably, but the world has changed signficantly since then, eg, e-commerce.

Time will tell...

BrulesRulez

This topic should be discussed at the Town Hall meeting. Send in your questions about the future of our crew planning/routes going forward.

plzdontfireme

Again, having money in multiple types of pots is better than having one big pot of money.

The benefit of the pension is that you can coast for 20 years (or be on disability), then go put in your high 5 and still walk out with full pension. That's worth a lot more than you give it credit for.

e-commerce has changed significantly since the mid 2010s too though. Amazon is completely destroying us in that sector. In the last year FedEx stopped offering same-city, same-day service. Meanwhile Amazon will let you order something in the early afternoon and have it on your porch before dinner is over.

If we were really losing money on the postal contact (doubtful), we weren't actually losing money on the actually postal contract per se, instead we were losing money because we ran out of freight to fill the rest of plane with due to poor management. We're in for a painful few years here. It's clear that our management is completely inept (no voluntary furloughs, dropped the ball on restructuring the postal contract, etc) and that wallstreet has every intention of gutting this place and diverting all the money needed for capex and chasing new opportunities to buybacks and dividends instead. Guess I should go buy some stock.

Cachaco

With that argument, first Amazon and now the USPS. Who knows what they will dump next at this rate.

tnkrdrvr

As a pilot at Brown I’ve been following this discussion since your group’s negotiations impact ours. To answer some of your concerns with our pension.

The Flat Dollar benefit eligible age group will continue to grow even if the company drags its feet on a new contract.

We have a number of options when taking our pension to protect ourselves. First you can take the max pension amount (actually an annuity purchased for you by the company). You could also take this out as a guaranteed (but slightly reduced) payout for the next 120 or 240 months. Payable to your wife (if you pass first) or estate (if you both die prior to completion). If you are still alive at the end of the term it simply continues to pay until you croak. You can take a survivor benefit option (several variations) that ends when you and your spouse die. Finally, there is a lump sum option for those with poor tax planning skills.

Moneybags

I get it’s protected if they delay negotiations but doesn’t the FDB have to be renewed each contract thereafter? That’s what the contract comparison says.

Can you share the quote about lump sum from your contract? Surely there is some limit on that amount?

JackStraw

From “Bigger not Better” to “Smaller not Better”

Merle Haggard

Strange that UPS, a fully unionized and better-paid operation across the board, can make money on postal and Amazon while FDX cannot. Poor manglement perhaps?