Originally Posted by TransWorld

What I heard was 95% ground. 5% air.

Originally Posted by Cachaco

Even our CEO clearly stated it is an Air contract. Hence the need for additional pilots (5% increase in pilots), nowhere mentioned hiring additional drivers.

We are not increasing plane count, just utilizing existing assets more with additional bodies.

Originally Posted by TransWorld

Not what I said. All I said was USPS said they are shifting a lot of their deliveries from air to ground. For all I know is it is going by pony express horseback. Ratio will now be 5% by air, 95% by ground. (Don't know the current percentages.)

Originally Posted by JackStraw

WTF is the point? It’s 300 pilots’ worth of flying…..

Originally Posted by TransWorld

Just giving background. The point is more USPS mail will go by ground, less by air.

How does that compare to the number of pilots needed currently to fly the mail, I do not know. How that impacts the amount of pilots needed to fly mail in the future is beyond my knowledge.

It just said less will go by air.

Originally Posted by JackStraw

Speculative. What’s not speculation is we are losing 300 pilots’ worth of flying to our biggest competitor.

Originally Posted by Merle Haggard

Competing is no longer our focus. Our focus is freeing up money to pump stock price for the inevitable DE Shaw dump that will eventually come.

Originally Posted by Cachaco

If Fedex earned $90.2B in any year, it would be one of the most, if not the most profitable companies in the world. Having said that, Fedex most certainly did not report earnings $90.2B in FY23. Net income for FY23 was $3.97B on $90.2B revenue, net income margin of 4.4%. You are obviously confusing revenue with income/earnings. Big difference.

And Fedex is not a $90B company, rather $67B market cap directly taken from Investor Relations site, and that’s only because the stock price recently surged. Again, don’t confuse revenue with market cap.

The USPS contract is for a minimum of 5.5 years. By the time this initial period lapses, we will be in full force retirements. Hiring extra pilots now helps us handle the extra volume today while adding bodies for peak retirements later, IOW, we won’t need to get rid of extra bodies if USPS isn’t extended in 5.5 years. And people keep throwing around 320-340 pilots, it is not! It is 170 for now, with the plan to reevaluate the need for more once the dust settles.

There are two things that are very clear at UPS. They don’t hire a single more body than they need and they protect their profitability targets very heavily, extremely shrewd company. They will be able to absorb this USPS volume by leveraging mostly existing assets, unlike Fedex when they started the USPS contract. The one article states it perfectly, this is a win-win for everyone. Fedex gets to divest a lot of their Express operation, reduce costs and their footprint, the USPS gets another large partner at a fair cost, and UPS absorbs this new revenue stream into their system with very little cost increase.

Originally Posted by JustInFacts

In the first 3 quarter of FY24, Fedex Express has generated $30 billion in revenue compared to the $1.73 billion in revenue for the entire USPS contract in 2023. Fedex is a $90+ billion plus company, not $60 billion. They reported earnings of $90.2 billion for FY23.

Originally Posted by Freighthumper

If you take a look at what has happened to some our very junior people, you'll see that some people have absolutely had their pay rates lowered. On top of the low BLGs, many were displaced out of wide body positions to narrow body with a lower pay rate. Many were also forced out of a base, or are now have to commute to ANC with a shotgun schedule to keep the WB pay rate. Sky isn't falling for me, but it's pretty dark for the guys on the bottom of the list. While the pension isn't gone, pancake man sure tired his best to start getting rid of it.