House Passes FAA Reathorization Bill - Fedex
 

House OKs safety plan for overseas aircraft work - Yahoo! Finance

House OKs safety plan for overseas aircraft work
House approves safety plan for more US inspections of foreign aircraft repair stations
Joan Lowy, Associated Press Writer
On Thursday May 21, 2009, 6:26 pm EDT

WASHINGTON (AP) -- U.S. inspectors would conduct more checks of overseas aircraft repair stations under a House bill approved Thursday that seeks to address safety concerns as major airlines send maintenance work overseas.

The European Commission has threatened to pull out of an aviation safety deal over that requirement. A U.S.-European Union agreement says each will have comparable safety requirements and inspection systems.

The legislation also authorizes $13.4 billion to accelerate the U.S. transition from a radar-based air traffic control system to one based on Global Positioning System technology.

The bill, approved by a vote of 277 to 136, requires the Federal Aviation Administration to increase its overseas inspections from once a year to twice a year, and foreign workers would have to submit to the same drug and alcohol testing and criminal background checks that apply to U.S. workers.

A report last year by the Transportation Department's internal watchdog said nine big U.S. airlines are farming out aircraft maintenance at twice the rate of four years earlier and now hire outside contractors for more than 70 percent of major work. While most of the outsourced work is still done in the U.S., often at nonunion repair shops, more than one-quarter of the repairs are done overseas.

The European Commission has threatened to withdraw from the pending aviation safety deal if the provision on overseas repair station becomes law.

Republican lawmakers called the provision a "job killer," predicting European airlines will stop sending their aircraft to repair stations in the United States.

"Our interest here is putting people to work and making this system safe, not doing away with jobs," said Rep. Rep. John Mica, R-Fla., who waved a list he said contained of 11,000 aircraft repair jobs in the U.S. that would be lost.

Rep. James Oberstar, D-Minn., chairman of the House Transportation and Infrastructure Committee, said the Europeans are "crying wolf."

"I wouldn't want to have to come back on this floor at some future date and have to respond to an air tragedy because an aircraft wasn't properly inspected in a foreign repair station that wasn't properly crewed or supervised by U.S. personnel," Oberstar said.

Another provision of the bill would make it easier for unions to organize FedEx truck drivers and other non-aviation employees.

Since its founding in 1971, FedEx Corp. of Memphis, Tenn., has fallen under the Railway Labor Act, which requires long mediation before employees can take work actions and bars localized unions. The bill's provision placing some FedEx workers under the less restrictive National Labor Relations Act would benefit the International Brotherhood of Teamsters, which has sought to represent FedEx drivers, and rival package delivery giant United Parcel Service of Atlanta, whose drivers are already Teamsters.

FedEx has vowed to cancel a $7 billion order for 30 Boeing 777 freighters if the provision is enacted; Teamsters officials have accused the company of trying to blackmail Congress.

The provision "threatens FedEx's ability to provide competitively priced shipping options and ready access to global markets," FedEx spokesman Maury Lane said.
The bill, which would authorize $70 billion for the FAA through September 2012, also would:

--Require the agency to hire more safety inspectors.

--Increase taxes on fuel used by corporate and private aircraft, raising an additional $600 million over 10 years beginning in 2010.

--Create an independent office to investigate whistle-blower complaints.

--Increase money available to subsidize air service to rural communities from $127 million to $200 million annually.

--Require a study on pilot fatigue.

--Require a study on airline pilot training and certification.

--Require airlines and airports to develop contingency plans for how they will handle the passengers whose flights have been delayed for hours on tarmacs. Consumer advocates had sought a three-hour limit on how long airplanes can sit on runways before they have to return to a gate.

House Transportation and Infrastructure Committee: Transportation and Infrastructure Committee

Federal Aviation Administration: FAA: Home

Seems to me that FedEx's Maury Lane just admitted that they can't compete with UPS on a level playing field. If I was Fred Smith or a FedEx investor, I'm not sure I'd want my company spokesman making that type of comment. The Street will surely take notice.

What "level playing field?" UPS has something like 100 trucks to every 1 from FedEx!

The comment from Mr. Lane was in reference to not being able to compete with a unionized ground workforce, something that UPS seems to deal with just fine.

What's the over/under on this thread going straight into the sh1tter?

AerisArmis,
Probably high, in any case. UPS is a trucking company that bought airplanes. Said trucks are operated by all union drivers.
FedEx is an airline that is now strengthening its trucks. The two companies are the same, just arriving at the same point differently. Now FedEx has to contend with the possibility of a unionized driver force. As an airline pilot, it bears watching because the eventual big force of 24 hour team drivers take away alot of airplane volume. It was painful as we went through the transition (4 days sorts down from 5, etc). As a fellow industry bub, I only wish well for both my Brown team and my Purple friends. We are really complimentary and the competition helps us both thrive in the marketplace.

Truth be told, Fred's success has came at UPS's expense despite UPS being a huge international company. If I were a UPS investor, I'd be worried about that type of competitor.

Again you are confusing Fedex Ground/Freight/Express. They are separate companies with separate sales, sorts, and delivery employees. If this happens Fred will just have to change his business model and let a lot of those separate employees go. Typical lefties, greater good is defined by what boost union employment not overall employment. Whatever it takes to keep those PAC contribution rolling.

FDXLAG,
When did I confuse them before??? <g>
I have never confused them. We are integrated logistics companies. UPS oversees an empire of various subsidiaries,
UPS Supply Chain Solutions
UPS Capital
UPS Airlines
UPS Express Critical
UPS Freight
UPS Logistics
UPS Mail Innovations
UPS Professional Solutions
Each with own sales staff, employees, facilities, sorts, and delivery employees where applicable.
When we fly into a gateway, we don't work for the folks there, we are the air subsidiary, different managers, etc.
UPS managed to use ground networks to cut airline costs, less pilots, etc, increase services etc. UPS bought Overnite in 2005 to compete with your seperate companies LTL business, etc. That was the subsidiary (UPS Freight) to compete with Fred's purchase of Viking and then American Freightways.
Here is how Fred intended those purchases:
"FedEx Corp. announced today it would re-brand its two LTL operating companies, American Freightways (AF) and Viking Freight, as FedEx Freight. They will continue to maintain separate operations to optimize service in their respective geographic markets, but will work closely with other FedEx companies.
"This move will boost our sales and marketing capabilities in the growing LTL market," said Frederick W. Smith, FedEx Corp. president & CEO. "While AF and Viking have excellent reputations in their market segments, they will now join their sister FedEx companies to compete collectively with the transportation industry's most diverse portfolio of shipping services."

Exactly what UPS does.

All was pointing out was Fred's quote from above. American Freightways and Viking Freight become FedEx Freight
if you want to read the rest.

Fred will combine efficiencies of all these companies he controls. Exactly what UPS does.
and if UPS does something, FedEx matches, FedEx does something, UPS matches.
Our management teams aren't dumb, They will continue to minimize costs in our airlines using their other delivery modes when able. When your LTL folks become team drivers, Fred will most certainly fill trucks with air volume like UPS. Stand by my original post.

double post.. deleted