Big Brown - The Untold Story of UPS

[Non Union]

It's also interesting to note that UPS is 100 years old this year. They've got some deep roots.

Which is the oldest passenger airline?

UAL? AA? Skybus?

 

[PreContact]

I think it's Lufthansa or KLM.

 

[TWA]

It all depends on whether or not it is considered a new company after emerging from bankruptcy.

 

[FlickerFade]

It's also interesting to note that UPS is 100 years old this year. They've got some deep roots.

Which is the oldest passenger airline?

UAL? AA? Skybus?

Northwest started in 1926
Hawaiian in 1929

KLM 1919

 

[Whistlin' Dan]

It's also interesting to note that UPS is 100 years old this year. They've got some deep roots.

Which is the oldest passenger airline?

UPS didn't start operating it's own airplanes until about 1988. Their roots as a parcel delivery company may go back 100 years, but as airlines go, they're still "the new kids on the block."

 

[Rez O. Lewshun]

UPS didn't start operating it's own airplanes until about 1988. Their roots as a parcel delivery company may go back 100 years, but as airlines go, they're still "the new kids on the block."

UPS is a delivery company that happens to have an airline.

FedEx was born an Airline that happens to have a delivery company..

Nothing wrong with either one...

 

[BoilerUP]

The money is made trucking boxes the cost of the airline is just part of the business they are in.

The feeder trucks haul the vast majority of the volume...but you're not going to get a product across the country (or across the ocean) overnight on any Freightliner.

The airline is no more a liability to UPS' balance sheet than the vast thousands of package and feeder trucks are.

 

[TheBaron]

About 35% OF UPS's profits come from the airline. That percent has been increasing dramatically and hopefully will contine to do so. I think FDX is the inverse and their ground side has been making a bigger share of their total revenue and profits.

FedEx Freight, Ground, and Kinkos make up approx. 39% of our income. Express (the airline) still brings in the lions share. As long as WW III doesn't start between the US and China, things should be great for the foreseeable future.

 

[nitefr8dog]

The feeder trucks haul the vast majority of the volume...but you're not going to get a product across the country (or across the ocean) overnight on any Freightliner.

The airline is no more a liability to UPS' balance sheet than the vast thousands of package and feeder trucks are.

I think you guys are missing my point, UAL, AA, NWA have one way to make money and that is flying airplanes. UPS,FDX have other ways to generate profits that is by trucking boxes! For years the airline if you stood it alone lost money at UPS but it was a required part of the bundled service, overnight, 2nd day, 3rd day etc. Now it provides a large part of the revenue.

 

[L'il J.Seinfeld]

I think you guys are missing my point, UAL, AA, NWA have one way to make money and that is flying airplanes. UPS,FDX have other ways to generate profits that is by trucking boxes! For years the airline if you stood it alone lost money at UPS but it was a required part of the bundled service, overnight, 2nd day, 3rd day etc. Now it provides a large part of the revenue.

Ok, I'm calling you out. What years are you referring? Aside from the one time start up costs absorbed in the early 90's, what the heck are you talking about? The airline side at UPS has pulled up the rest of the company since the books have been public since the IPO 8 years ago. The airline will also continue to become more important because you can't truck anything to China. Boats are too expensive since they tie up inventory for shippers for too long. Air cargo from Asia is making tons of money for UPS.