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Old 04-02-2015 | 08:12 AM
  #220  
Birdstrikes
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The DHL B737 contract was awarded as "Cost Plus". Meaning DHL takes the risk on the airframe/engines and the operator is paid a profit margin above and beyond what it costs to operate them. I've heard the "Plus" $ portion of the contract from management and it is not very much. I won't post details on a public forum so don't ask me to. Management's goal is to make money through a larger scale operation rather then through the current 4-5 B737's. Also, the "Plus" portion is also low enough that no other carrier really wants it. DHL got what they wanted.

The "Plus" portion is low enough that it would not cover the additional cost of home basing or a large pay raise unless management is willing to use profits from the B777 side of the house to cover shortages on the B737 side. I've heard it stated (paraphrasing a bit) "The B737 job is in CVG. If you choose to live somewhere else that is your choice". Everyone that bid onto the B737 program did so willingly. Whether they realized what they were bidding into or not is probably variable between individuals.

Many pilots at SAI tried to explain to their fellow pilots what a $hit sandwich the B737 LOA would turn into and to vote NO! Obviously, not enough of the pilot group listened. Yes, we needed the business. However, a "NO" vote might have forced management to squeeze DHL for a bit more which might have sweetened the pot with home basing or something else.

The DHL B737 flying is what it is. I would not expect any major changes. If you bid onto the B737, or you are a new hire and accept that airframe, simply know what you are getting into.

Where was 1224 in all of this? Oh....now I remember....they loaned us their "economist" to help work out the LOA prior to the vote and had our MEC hoodwinked into thinking this would save pilot jobs at SAI. He's gone now and all 1224 carriers are stuck with this lowball airframe.

For the right pilot the B737 job might be a good deal. It is/has been a stepping stone for pilots to get some Guppy time and quickly move on. It's not a good way to get to the 777. You will be equipment locked on the B737 for 3 years before you can transition to the B777. The exception would be for an upgrade to B777 CA and there are lots of senior B777 FO's ahead of you making that scenario unlikely.

Last edited by Birdstrikes; 04-02-2015 at 08:40 AM.
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