The secret: infrastructure.
“The scale of FedEx — and UPS, for that matter — the hubs, the infrastructure we have built over 40 years, those things are not easily built,” Cunningham said in response to a question on how FedEx would overcome competition from Amazon.
Previously in his presentation, Cunningham laid out the scope of FedEx, which, for example, employs more than 425,000 worldwide.
Separately, Cunningham during his presentation touted FedEx’s ATR 72-600 and Cesna turboprop acquisitions. He said FedEx worked directly with ATR on aircraft design, and that the manufacturer will go from “clean sheet to delivery” in three years. Before the FedEx deal was announced last year, ATR offered only the passenger variant of its popular turboprop aircraft. All in-service ATR 72-600Fs are freighter conversions.
Learn more about e-commerce and its impact on demand for freighter aircraft on 10-12 October at Cargo Facts Symposium, where a roundtable panel discussion will be dedicated to the topic. For more information, or to register, visit www.cargofactssymposium.com.