FedEx to transfer LAX airport maintenance to Indianapolis
FedEx will exit a maintenance facility at LAX and send the work to its Indianapolis hub to increase efficiency.
www.freightwaves.com
FedEx closing LAX maintenance base
- Thread starter Kev3188
- Start date
www.freightwaves.com
Sux to hear Kev. FedEx has been there since 1988. The article states that employees will be assisted to other rolls, what kind of "other rolls" and what will 400 maint techs all do??FedEx to transfer LAX airport maintenance to Indianapolis
FedEx will exit a maintenance facility at LAX and send the work to its Indianapolis hub to increase efficiency.
I can understand the co wanting to leave Cali., in order to saves $$$. I feel bad for all the long term employees affected. I am pretty positive that no long term employee's will not leave Cali weather for Indy weather, huh?
eolesen
Veteran
- Jul 23, 2003
- 15,988
- 9,428
Yeah, let's make sure everybody understands this is not a matter of Union versus non-union...
This is a matter of the airport not wanting to issue a long-term lease because they would rather redevelop that land into something more revenue-producing than a maintenance hanger.
I don't think this will be the last time we hear of a major maintenance base shutting down because the real estate is too valuable.
This is a matter of the airport not wanting to issue a long-term lease because they would rather redevelop that land into something more revenue-producing than a maintenance hanger.
I don't think this will be the last time we hear of a major maintenance base shutting down because the real estate is too valuable.
CorvetteMan
Senior
- Jul 7, 2022
- 486
- 53
OP
WeAAsles
Veteran
- Oct 20, 2007
- 23,188
- 5,343
Actually it sounds like the opposite. It doesn’t sound like it’s the Airport not wanting to renew the lease but FedEx realizing they can get substantial savings by moving out of a very expensive area. Another Company pulling what they can out of California.
“FedEx regularly evaluates its networks and makes adjustments to enhance service, improve operational efficiencies, and lower the cost to serve. Upon expiration of this lease agreement, FedEx Express plans to discontinue use of the facility at 7401 World Way West and will move the heavy maintenance capability to our Indianapolis hub,” FedEx said in a statement provided to FreightWaves. “This adjustment only affects the maintenance hangar facility. FedEx will continue to operate throughout the Greater Los Angeles area. As such, the transition will be seamless to customers, who can expect the same reliable service they receive today.”
eolesen
Veteran
- Jul 23, 2003
- 15,988
- 9,428
Spin it however you wish, but the fact remains that Airport terminal expansion is the reason this happened. LAX wants to tear down the hangars on the west side of the airport to expand the terminal.
United has already built a new hangar on the east side and should have vacated the old one on the west side already. Not sure what happened with the Delta or Qantas hangers, but they are far enough west that they are outside the footprint for the new terminal.
FedEx would have had to build a new facility on the east side, and from the sound of things, without a long-term lease. It's no wonder they would choose to just expand where they already have cheaper land available.
United has already built a new hangar on the east side and should have vacated the old one on the west side already. Not sure what happened with the Delta or Qantas hangers, but they are far enough west that they are outside the footprint for the new terminal.
FedEx would have had to build a new facility on the east side, and from the sound of things, without a long-term lease. It's no wonder they would choose to just expand where they already have cheaper land available.
Last edited:
WeAAsles
Veteran
- Oct 20, 2007
- 23,188
- 5,343
I didn’t write the narrative, FedEx did. They probably did ask for a price that FedEx didn’t want to pay and they also may very well have had talks with FedEx letting them know they had different plans for the space.
Otherwise you’re probably right. Many reasons an Airline moves things around. When I hired on they made it very clear that Airlines were a mobile business and they asked me if I was willing to move to keep my job. I’m sure if I said no I wouldn’t be writing here right now.
If the job is worth moving for, I’m moving with it. LAX to IND is a bit of a culture shock I’d guess though.
WeAAsles
Veteran
- Oct 20, 2007
- 23,188
- 5,343
FedEx said on Wednesday it will fold its businesses that move freight and its divisions that offer other services into one organization, as the delivery firm steps up efforts to cut costs and increase efficiency across its bloated operations.
The freight bellwether firm, which competes with direct rival United Parcel Service and Amazon.com's growing delivery operation, is racing to reduce overhead costs that have pressured profits as demand for deliveries cools and global recession threatens.
FedEx had come under criticism from investors last year for its subpar performance compared to UPS, which has a unionized workforce.
www.cnbc.com
The freight bellwether firm, which competes with direct rival United Parcel Service and Amazon.com's growing delivery operation, is racing to reduce overhead costs that have pressured profits as demand for deliveries cools and global recession threatens.
FedEx had come under criticism from investors last year for its subpar performance compared to UPS, which has a unionized workforce.
FedEx to combine delivery units as part of a $4 billion cost-cutting push
FedEx said on Wednesday it will consolidate its separate delivery companies into a single entity, as the group slims its bloated infrastructure.
OP
- Thread Starter
- #10
This move represents huge downward pressure on the FX Express workforce. I can see the company slowly whittling that group down to almost nothing. In this case, "hybrid" will likely really mean an 80/20 split in favor of lower-paid Ground employees/contractors.
CorvetteMan
Senior
- Jul 7, 2022
- 486
- 53
Most ground employees are vendors. Those are franchises. I know someone that owns several FedEx Ground in NYC.
OP
CorvetteMan
Senior
- Jul 7, 2022
- 486
- 53
In today’s financial presentation FedEx stated closing the LAX Hangar will generate $60 million in savings.
investors.fedex.com
FedEx Announces Planned Consolidation of Operating Companies
New operating structure will create even greater flexibility, efficiency, and intelligence to unlock value for customers, team members, and stockholders Company hosts DRIVE Investor Event to provide further detail on progress toward $4 billion in benefits from transformation Announces 10%...
WeAAsles
Veteran
- Oct 20, 2007
- 23,188
- 5,343
In today’s financial presentation FedEx stated closing the LAX Hangar will generate $60 million in savings.
FedEx Announces Planned Consolidation of Operating Companies
New operating structure will create even greater flexibility, efficiency, and intelligence to unlock value for customers, team members, and stockholders Company hosts DRIVE Investor Event to provide further detail on progress toward $4 billion in benefits from transformation Announces 10%...
I reached a point in my career where in the back of my mind I’m always ready to uproot and move. Granted though I chose a life not to take root with a wife and kids that makes it way more difficult to be almost casual about it now.
Blue collar workers have difficulty understanding that the business is always going to do what’s best for the business and the shareholders over the wants and needs of those who work for them.
A good solid Union Contracts can only help to blunt that pain. (Moving allowances and expenses)
