Originally Posted by
FlyByCable
Not according to Lekites. He says that if no DHL deal, all DC-8s parked and furloughs commence. What's your source that says otherwise?
I don't know what Lekites said. Perhaps you can post for everyones knowledge. I do know that UPS managers/planners in SDF stated last November that they were going to keep the 8's parked on the ramps and at ROW through the summer of 2008 to cover peak flying to minimize outside peak contracting. Also the plan for 2009 and beyond. It appeared obvious at the BPM's attended as a line slug that UPS didn't really want to get caught short of lift, 8's give UPS alot of options/bargaining power on the cheap. One is negotiating power with customers to prevent Fedex from pointing out how short UPS is on lift and how that can affect service, also allows UPS to mull over future 767 deliveries, etc with Boeing, like when UPS can'xd the rest of the A300 deliveries. Even if 8's are parked, likely they would not dump the 767 orders at same time giving UPS a huge shortfall in lift. If they trade out the 767 for an 8, still will need crews to staff the new deliveries.
Other clues UPS puts out despite claims of imminent furlough, DC-8 crews are considered critical through peak, they will also be 'critical' for peak 2009 if the Peak Planning team has their way. Also, as I frequently posted in other threads, the network is greatly optimixed, UPS from 97-present has constantly been maximizing lift on airplanes for specific destinations to make core product service. In other words, a boatload of NDA product goes from SDF to ORD via truck and not by plane. Only the really highly profitable early am delivery stuff makes the planes because ground transport doesn't make it in time. We use to have 30 pilots a week needed to make service from gateways like BHM-SDF (using an 8 and a 727 because SDF couldn't take all the volume). With 1. Worldport capacity now capable, 2. Teamsters gave UPS Team drivers
3. A300. UPS now only needs 10 pilots a week. But 10 very critical pilots that are optimized. If Lekites wants to make service which UPS brags is the reason for their success, their is a minimum of airplanes necessary to make that service. UPS is pretty close to that margin. You can post that Lekites says we are going to furlough and park 8's, am sure he says this to whomever. The business facts don't really support the model as they are clearly using. Bluster is good, but in this case, not supported by what the rest of management is doing. UPS also stated that they were going to reduce the crews in each fleet to optimize, notice that they did not follow through on this bluster either. Why? Perhaps because the working managers knew that they really can't cut the meat because the system is fairly well optimized as a whole. Just my observations from being in SDF, working in the TC, and seeing and talking with lots of different management types, etc.