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Thursday, October 14, 2010

postheadericon The Brown Bailout guy has a point

Over the past few months you have not been able to go on the Web without running into the Brown Bailout guy talking about FedEx using airplanes and UPS using trucks without seeming to make much of a point.

While the ads are lighthearted, the issue is serious. If UPS and the Teamsters get the FAA Reauthorization amendments that they are lobbying for, Federal Express will be forced to change its entire business model and may never recover.

The issue is not that complicated. As everyone knows, Federal Express’s core business is taking a package from point A to point B guaranteed next-day delivery. This constitutes about 80 percent of its business, and it relies upon the dependability of strike-free airline hubs to deliver this service to the public at a reasonable cost.

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