Fedex Seat Bid?

[Ninerfan]

Anybody heard anything? Last note from the SCP said the seat bid was being "negotiated". Any new rumors? Come on Flex's/LCAs...you guys are usually good for some new rumint.

 

[Purple Speed]

I have heard that the bid will come out on June 15th from a few sources that range from an ACP to LCAs.

 

[Lupus]

Union and company are just about done w/ language to open new domiciles in Paris and Hong Kong. Once final, it will be sent to memebers for ratification. This will make the next seat bid Mid-August at the earliest.

 

[DLax85]

I have heard that the bid will come out on June 15th from a few sources that range from an ACP to LCAs.

I heard the same from a crashpad buddy, who heard it on the crew bus last night...so it MUST be true.

I guess we'll be able to verify that one in less then 48 hrs!

...just hoping there's some 757s to Memphis ---- though I heard from an ACP last month not to expect many on this bid --- mostly 757s to CDG on this bid and more 757s to MEM to come in a smaller bid in early 2008.

...all unsubstantiated rumors of course.

 

[Purple Speed]

In the news today...

FedEx to base pilots overseas

By Jane Roberts
June 15, 2007


FedEx Corp. plans to establish pilot bases in Paris and Hong Kong, saving it the cost of getting U.S.-based pilots to work and giving it more flexibility as it takes on DHL, the No. 1 courier company in Europe.

The Memphis-based company and the pilots' union are discussing an amendment to the pilots' contract, including cost-of-living stipends and details about the planes FedEx intends to fly in each market.
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"We've had very cordial dialogue with the company," said David Webb, chairman of the FedEx master executive council of the Air Line Pilots Association.

"We've had ongoing trips to Asia to look at housing, schools and hospitals. These two domiciles are going to be important to the future growth of Federal Express," he said.
The conversations, Webb said, have been going on for years.
He expects FedEx would like to have pilots bid on the new routes this year.
"We're working diligently to complete the negotiations. Everyone seems to be willing to listen to each other and make the best effort to have it work out," said Maury Lane, company spokesman. "But we're in no rush because we can keep doing business the way we are."
For pilots, particularly young pilots, an overseas base can offer chances to move up the pay scale with promotions not available in larger bases. For instance, a first officer in Memphis who lacks seniority to fly in the captain's seat could be senior in a smaller domicile.
Promotion from first officer to captain normally carries a 35 percent raise. A 15-year first officer moving to the most senior captain's seat would make an added $60,000 to $70,000 a year.
Traditionally, FedEx has agreed to pay moving costs to and from a domicile for pilots who stay three years.
Setting up foreign bases could save it millions in commuting costs. For instance, for June, FedEx has 31 flights to Europe to get 64 pilots in place. FedEx can expect to spend $330,000 on their tickets -- an annual rate of $3.9 million.
Figures are based on round-trip, first-class tickets that average $5,200, according to the company's flight operations Web site.
When domiciles are established, pilots who choose to commute from the United States, or from anywhere else, will have to pay their own fares.
FedEx has bases in Memphis, Los Angeles, Subic Bay and Anchorage, Alaska. Memphis is the largest.
"You want to have your pilots based where the flight originates because that's where you have the longest layovers," said Satish Jindel at S J Consulting near Pittsburgh. "It gives the pilots a better quality of life and better scheduling."
The change comes as FedEx adds capacity to its fleet and prepares to open its Asian hub in Guangzhou, China, in December 2008. FedEx's Asian business is growing by double digits; growth in Europe is slightly less.
Last fall, FedEx said it intended to spend $2.6 billion to buy 90 Boeing 757-200s, which it will deploy largely in Europe.
What makes the 757 attractive is that it can land anywhere FedEx now lands 727s.
The 757 can carry 20 percent more cargo and costs 25 percent less to operate than a 727, including the crew. It requires a two-person crew; the 727 requires three crew members. That means the company can carry packages at a lower cost per package, allowing it to increase profit margins in the overnight delivery sector, still its core business.

 

[Wozin8or]

Sorry this would have come sooner but I couldn't stop looking at Lupus' avitar! Just flew with a Capt. on the negotiating committee who confirmed what Lupus said. They are still working on LOA language (almost done) then it will go out for a general vote. After that the seat bid. So late summer looks likely!

 

[thunderworm]

doess anyone know if this bid or these bases will affect hiring enough to stave off the no hiring for a year rumor?

 

[SNIZ]

Cola

Jumpseating with a MEC rep yesterday and he was on the LOA conference call. Negotiations about some type of Cost of Living Allowance for both domiciles was being discussed, also foreign income tax relief/offsets are in the mix.

 

[DLax85]

doess anyone know if this bid or these bases will affect hiring enough to stave off the no hiring for a year rumor?

Do I "know"? No

...but, I doubt it.

However, if they are unable to fill the FO seats in these new foreign domiciles they may be forced to "direct hire" into these positions in a similiar way they filled 68 MD-11 FO slots to Anchorage last year after they went unfilled in the Mar 06 bid.

How does a 757 FO seat to Paris sound for a new hire???

Ah, if I was only a single, 24 year old, copilot living overseas again...those years in Tokyo/Pacific were the best!!

 

[DLax85]

Jumpseating with a MEC rep yesterday and he was on the LOA conference call. Negotiations about some type of Cost of Living Allowance for both domiciles was being discussed, also foreign income tax relief/offsets are in the mix.

Did he confirm the "China-area" domicile was Hong Kong....the Paris domicile has been "substantiated rumor" for quite some time, but I was under the impression the "China-area" domicile was actually the last bit that needed to be decided.

While very croweded, and ex$pensive, HK will be much better then mainland china --- English speaking, lots of other expatriates, easy access to other Asian/Pacific cities, and greater selection of private schools.

Hopefully, the company will be funding schools --- if not, it will be very difficult to get folks with middle school or high school kids to go abroad.