MaxKts

Q&A


---Are the allowances taxed?

Housing allowance is a taxable allowance in the US, but the company pays that. Not sure if storage allowance is taxed, but if it is, the company pays that, too.


---What about schooling?

FDX was never going to pay schooling. We’re pilots, not executives, we’re also not E1. When they send an executive over, they get to pick who they send. They can look and choose a person without kids and for pilots anybody can bid it – the company doesn’t get to make a choice on that, so doesn’t have a way to control costs like when sending an executive over.


There are options for enrolling your kids into American or British school in HKG…There’s also Xuhai, Shenzhen, and Macau, and you can get your kids into school there.


Bob told a story about kids being signed up for good private schools when born, so still hard to get into the best private schools in the US. Some people had to move from NY to CT because they couldn’t get their kids into school in NY. This is a problem happening everywhere, not just HKG. If schooling is your problem, then maybe shouldn’t bid it right now.


For some reason everybody thinks these bases (CDG and HKG) have to work for everybody, but have never thought that for other bases when they’ve been opened.


---The way the LOA is written seems to be very loose – there seems to be a lot of vagueness in the way the LOA is written (like the GT). How are the details going to be worked out?

Lots of issues are covered under CBA, but a few specifics for LOA have yet to be implemented. Everything in the contract applies to the LOA, plus the LOA. There is still a little sense of adventure built into this. GT will be on the clock at the present rate of pay for GT. The SIG GT waiver only applies to HKG and CDG.


---How did this LOA come about?

The average cost for the company to move a pilot is $50,000 (there and back) under CBA. The LOA is worth over $100,000 over 2 years, verses the CBA move package over 3 years (50k). The ability to bid under CBA Section 6 is still available. All these questions pilots are asking would still be in existence if the domicile was being opened under section 6 now, without the LOA. 2000 pilots had LAX on their standing bid before the details were figured out. The same thing will happen for HKG. People will bid it whether the enhanced package is there or not. It’s a moot point about getting answers to all the details. The base will be opened whether we want it or not. The only thing voting the LOA down will do is eliminate an enhanced financial package.


---Does Jack Lewis’ email have the effect of modifying the LOA?

ALPA didn’t think STVs were going to be an issue that’s why they didn’t tackle them in the LOA. Both sides knew that for inverses, one bid period would be the limit if they ever occurred. Everybody has always worried about inverse conversions. For the Airbus, they inversed SIBA only the first time. Every SIBA after that has gone senior. Even if the STV is implemented it is not going to go junior. We have 60 pilots living in Europe – 30 currently in Paris. Paris is a non-event. The big issue in Paris is whether a pilot living in Italy can qualify for the $2700/mo. Just as many FOs as CAPs living in Europe, so narrowbody pay is not a big deal. If you live 10 min outside of Paris, the cost of living is considerably less. One FedEx pilot has an apartment overlooking at the Louvre for 3200/mo (or was it $3700?) The standard of living in these bases is much smaller than the US. Usually less than 1500 square feet. ALPA was trying to get package for a shorter period of time than the CBA for people to be flexible and have an adventure. It gives lots of pilots an opportunity they wouldn’t have under the CBA. (editor’s note: side letter LOA 25jul07 limits STVs for 1 bid period.)


---Does the LOA and signing the letters tied to it restrict your ability to commute to any of those domiciles in anyway?

No. This is a supplement to the contract not replacing the contract. FDX tried to make it mandatory that you have to live there. They don’t want a Mailboxes Etc mailbox address. Are they going to tell you that you can’t have a roommate? No. Can you have a house somewhere else? Yes. Can you visit that house any time you want? Yes. Do you have to see your wife all the time? No. This issue will never come up unless somebody makes it come up by flaunting. Steve Hanks (FDX relocation) is removed from the factor of making the decision whether or not you live there. The Chief Pilot makes the decision whether you live there. If you have a receipt for a place you live, then that’s good enough. CDG has a larger area of approval due to the TGVs and straight to the airport. Possible for more options for commuting from way out in the countryside.


---CDG – if we have kids of any age, is it possible to get our kids into school in Paris?

Yes, the company should help you out. Several of our pilots have lived over there for a couple years and had no problem getting kids in school.


---Did the subject of valuing the compensation to the valuation of the dollar to the Euro or HKD.

It was discussed, but obviously not agreed upon. The Dollar vs. Euro is at a bottom now, so if it goes down any further, we’ll have much larger problems. In the past, there have been adjustments to offset yen, etc in extreme cases, so it can be addressed if it becomes an issue.


---Could you comment on the specter of if we decide not to pass the LOA if we might have FDX CAN and FDX CDG?

If we don’t approve the LOA, FDX could make CAN (Guangzhou) the base instead of HKG. They probably won’t, but they can. We should be worried about the effects of the optimizer – instead we’re fighting amongst ourselves regarding this LOA.

If we vote down the LOA, we open the possibility of the company creating another certificate to do the flying. There are folks in the company that hate the union and will say I told you so. If the LOA is voted down, they’ll say I told you so and press to have a subsidiary do the flying overseas. These same people thought we’d never get our act together to make a deal (contract 2006).


---What about 777 pay?

As to 777 pay, we don’t have to negotiate – that’s in the contract. When they bought the 777, FDX said it was a replacement for the A380 - it does the same thing the A380 does, so A380 pay rates should be applied to the 777.


---How long can you live in Paris? Can I stay 10 years in Europe?

We’ve been told you can stay there as long as you’d like. There is a 5 year visa limit, but that has been waived for France. China has a 5 year limit which should not be enforced. The expensive part of staying more than 5 years is paying into their social security system. The French have waived that, but they may change their mind. The Chinese are supposed to waive it.


---If you move lock stock and barrel to CDG do you have a choice between the LOA and Section 6?

Yes, but ANC has the LOA enhanced option plus the section 6 move (if you qualified for a move package to ANC). ANC folks have the regular move – you can take the value of the move to the lower 48 and move to Paris. If you have the enhanced option, you can still have your house here. When you move back, the company still owes you the move from ANC to lower 48.


---With FDX paying the tax equalization, what about confidence that FDX doesn’t know anything?

All Price Waterhouse is going to tell FDX is how much money they owe the government based on your taxes. You don’t have to have PW do your taxes, but PW is the only one FDX will pay for. If you use a third party, PW has to approve your tax return and tell FDX how much you owe.