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Shem Malmquist
- Joined
- Nov 26, 2001
- Posts
- 279
Albie,
There is part of the equation you missed and are probably not aware of.
The bulk of our international payload is NOT FedEx P1, but rather mostly low yield from freight forwarders (which is why FedEx participates in the IATA conferencs on tarriffs and trade). I don't know the exact numbers now, but it used to be that over 90% of our payloads were the low yield stuff. Essentially, we use that to justify the trunk airplane so we can then sell our own product on the same route. UPS, incidentally, does the same thing, although they do it through selling block space to third party carriers.
The notion of international mail was that the yield is higher, so the all else remains the same but the profit is a bit higher. Could mean taking some airplanes out of the desert, though.
I do not know of the validity of the international USPS contract, I do know that if it's being discussed it's at a very high level, so flight managers would likely not be informed until it was a done deal.
There is part of the equation you missed and are probably not aware of.
The bulk of our international payload is NOT FedEx P1, but rather mostly low yield from freight forwarders (which is why FedEx participates in the IATA conferencs on tarriffs and trade). I don't know the exact numbers now, but it used to be that over 90% of our payloads were the low yield stuff. Essentially, we use that to justify the trunk airplane so we can then sell our own product on the same route. UPS, incidentally, does the same thing, although they do it through selling block space to third party carriers.
The notion of international mail was that the yield is higher, so the all else remains the same but the profit is a bit higher. Could mean taking some airplanes out of the desert, though.
I do not know of the validity of the international USPS contract, I do know that if it's being discussed it's at a very high level, so flight managers would likely not be informed until it was a done deal.
