By Company 1995 . And Estimates 1994-95 . 4 Investment Conclusion . By Company 1996 . All rights reserved.
Air freight is usually the first freight mode to experience any changes in economic activity.
It appears that the weakness in retail sales may have been the problem, indicating that primary manufactured goods increased and went into inventories and did not move to final sale. If that turns out to be the case, then there could be some catch-up freight movements in the fourth quarter. The odds were that RGA would not have been able to turn profitable for another few years and so the parent company wisely decided to cut its losses now. The original idea of RGA was sound as it accompanied Roadway Package Services' operations and allowed a broader range of options to be marketed to the shippers. Fedex has been negotiating for nearly a year and a half, and the union finally tired of the company's tactics.