United Parcel Service Airlines Operations

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United Parcel Service Airlines Operations
Competition
Air transportation is, increasingly, becoming the preferred mode for the shipment of high-value, lightweight and perishable goods due to lower shipping costs and more frequent service. In the air cargo industry, UPS competes with many different carriers on a local, regional, national and international basis. Their primary competitors include the United States Postal Service (USPS), other national postal services, and various motor carriers, express companies, freight forwarders, and air couriers such as Federal Express (FedEx), DHL, Emirates SkyCargo, Korean Air Cargo, Cathay Pacific Cargo, and Lufthansa Cargo. Other areas of competition include the use of mail substitutes (e.g.,…show more content…
Personnel From 2005 to 2007, the number of people employed by UPS Air increased from 5,898 (averaging 5,723 full-time and 175 part-time employees) to 6,280 (averaging 6,117 full-time and 163 part-time employees). As a result of the economic downturn which began in 2007/2008, UPS Air has decreased both its full-time and total workforce by 13% (its part-time workforce had been on the decline since 2002). As of December 31, 2014, UPS Air employed 5,461 people, including an average of 5,345 full-time employees and 116 part-time employees, not including temporary seasonal employees; and by August 2015, the number of employees had increased, for the first time since 2007, to a total of 5,483, consisting of 5,365 full-time and 118 part-time employees (BTS, 2015e; SEC, 2015a).
Included in the full-time employees are “…pilots who are employed under a collective bargaining agreement (CBA) with the Independent Pilots Association ("IPA")… ” (SEC, 2015a, p. 11). The total number of pilots has decreased from a maximum of approximately 2,900 in 2007, to approximately 2,600 at the end of 2014 (SEC, 2006-2015a). In addition to the pilots, the company’s “…airline mechanics are covered by a collective bargaining agreement with Teamsters Local 2727…” (SEC 2015a, p. 11).
Operating and Financial Performance Data
Operating Performance - Revenue Ton Miles (RTMs).
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