FEDEX 757's
03-18-2008 | 07:55 AM
#51
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Joined: Aug 2006
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From: 1559
If the payload of the A310 is about the same as a 757 and the A310 is flying around Europe half empty............then why would we put 757's there to fly around Europe.......half empty? Unless it's because it falls under our new NB rates even though it has a WB payload. Would save the company about 3mil a year in pilot pay alone if it was turned into a FDA.
How many 310's do you think we can put our hands on? How many 75's can we get?
03-18-2008 | 08:44 AM
#52
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Joined: Aug 2006
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From: Retired
They're not flying around half empty now and they're not 310s any more. They're 300s and they're flying fuller than anything I've seen in the domestic system in the last 6 months.
03-18-2008 | 08:54 AM
#53
Line Holder
Joined: Apr 2007
Posts: 60
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DAL's announcement of reduction in voluntary employee reduction also includes airframe reductions.
"Delta intends to reduce its mainline fleet by 15 to 20 aircraft and its regional aircraft by 20 to 25 planes, Bastian said. Specifically he named Boeing Co. 757s and MD80's"
Maybe airframe acquisition group has a target.
"Delta intends to reduce its mainline fleet by 15 to 20 aircraft and its regional aircraft by 20 to 25 planes, Bastian said. Specifically he named Boeing Co. 757s and MD80's"
Maybe airframe acquisition group has a target.
08-01-2008 | 09:18 AM
#54
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Joined: Apr 2006
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From: MD-11 Captain
FDX starts 757 service to DCA
08-01-2008 | 01:56 PM
#55
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Joined: Jul 2007
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From: Gear Monkey
Another article touting the 20% increase in capacity for 757s over 727s, and the 25% increase in fuel savings.
Hmmmmm....
We're currently seeking higher 777 rates over current widebody rates because it brings in more revenue per flight/more efficiently, but accepting the same narrowbody rates for 757s and 727s.
Hmmmm....
***********************************
New FedEx fleet to save cost : Business News : Memphis Commercial Appeal
New FedEx fleet to save cost
Arrival of first 757s expected to ease fuel expenses, increase cargo space
By Jane Roberts (Contact), Memphis Commercial Appeal
Thursday, July 31, 2008
FedEx Corp. is introducing the first Boeing 757-200s into its fleet this week, hoping to save money as it retires an aging fleet of gas-guzzling Boeing 727-200s.
FedEx announced in 2006 its intentions to invest $2.6 billion in 90 retrofitted 757s that would begin arriving between 2008 and 2016.
Besides costing about 25 percent less to fly than the 727, the 757 offers 20 percent more cargo space and allows FedEx to trim cockpit crews from three to two people.
On Wednesday, Morgan Stanley downgraded FedEx to equal-weight and significantly cut earnings estimates, saying fuel costs are expected to create difficulties for parcel delivery companies.
"Our stance is that slowing GDP growth and adjustments to a new world of higher ($125 per barrel) fuel will create significant margin and earnings headwinds for the stocks," analyst William Greene said in a research note.
Morgan Stanley expects the slowed economy to be risky for FedEx because 60percent of its earnings before interest and taxes are generated by the overnight division, which moves high-priority, premium parcels by air.
"If air express is facing a secular decline, it will be difficult for FedEx to quickly adjust its air network to a lower level of demand. And, the FedEx brand is so powerful; we believe that management would prefer to endure a period of lower earnings than put the brand promise at risk," Greene wrote.
Evidence of the shift in the sector includes a drop of 6.5 percent in the overnight envelope traffic at FedEx in the quarter ended May 31, the largest decline since 2001.
UPS's next-day air volumes fell 6 percent in the quarter ended June 30.
Donald Broughton, an analyst at Avondale Partners in St. Louis, says the 757 will create measurable fuel savings for FedEx.
"The more fuel-efficient engine and planes changes the amount of fuel they burn per box carried," he said.
He rates the stock outperform.
The 757 is a short- to medium-range narrow-body commercial passenger aircraft that Boeing manufactured from the early 1980s until 2004, when it discontinued the model after building 1,050 planes.
FedEx had the planes reconfigured for cargo, which includes taking out seats and redoing doors for cargo.
FedEx shares dropped $2.46, or 3 percent, finishing normal trading hours Wednesday at $79.66.
Contact Jane Roberts at 529-2512.
Hmmmmm....
We're currently seeking higher 777 rates over current widebody rates because it brings in more revenue per flight/more efficiently, but accepting the same narrowbody rates for 757s and 727s.
Hmmmm....
***********************************
New FedEx fleet to save cost : Business News : Memphis Commercial Appeal
New FedEx fleet to save cost
Arrival of first 757s expected to ease fuel expenses, increase cargo space
By Jane Roberts (Contact), Memphis Commercial Appeal
Thursday, July 31, 2008
FedEx Corp. is introducing the first Boeing 757-200s into its fleet this week, hoping to save money as it retires an aging fleet of gas-guzzling Boeing 727-200s.
FedEx announced in 2006 its intentions to invest $2.6 billion in 90 retrofitted 757s that would begin arriving between 2008 and 2016.
Besides costing about 25 percent less to fly than the 727, the 757 offers 20 percent more cargo space and allows FedEx to trim cockpit crews from three to two people.
On Wednesday, Morgan Stanley downgraded FedEx to equal-weight and significantly cut earnings estimates, saying fuel costs are expected to create difficulties for parcel delivery companies.
"Our stance is that slowing GDP growth and adjustments to a new world of higher ($125 per barrel) fuel will create significant margin and earnings headwinds for the stocks," analyst William Greene said in a research note.
Morgan Stanley expects the slowed economy to be risky for FedEx because 60percent of its earnings before interest and taxes are generated by the overnight division, which moves high-priority, premium parcels by air.
"If air express is facing a secular decline, it will be difficult for FedEx to quickly adjust its air network to a lower level of demand. And, the FedEx brand is so powerful; we believe that management would prefer to endure a period of lower earnings than put the brand promise at risk," Greene wrote.
Evidence of the shift in the sector includes a drop of 6.5 percent in the overnight envelope traffic at FedEx in the quarter ended May 31, the largest decline since 2001.
UPS's next-day air volumes fell 6 percent in the quarter ended June 30.
Donald Broughton, an analyst at Avondale Partners in St. Louis, says the 757 will create measurable fuel savings for FedEx.
"The more fuel-efficient engine and planes changes the amount of fuel they burn per box carried," he said.
He rates the stock outperform.
The 757 is a short- to medium-range narrow-body commercial passenger aircraft that Boeing manufactured from the early 1980s until 2004, when it discontinued the model after building 1,050 planes.
FedEx had the planes reconfigured for cargo, which includes taking out seats and redoing doors for cargo.
FedEx shares dropped $2.46, or 3 percent, finishing normal trading hours Wednesday at $79.66.
Contact Jane Roberts at 529-2512.
08-02-2008 | 08:10 AM
#56
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Joined: Feb 2007
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From: MD11 FO, ANC
Just a guess on my part - I wasn't on the negotiating committee....
But, agreeing to narrowbody rates on the 757 was probably something (one of MANY things) we agreed to (gave up) in order to secure the higher payrates for the A380.
Now, the company is trying to have their cake and eat it too (bait and switch) by cancelling the A380 and "replacing" it with the 777 but claiming the 777 is just another widebody (payrates) aircraft.
Negotiating in bad faith all the while knowing they were going to dump the A380 anyway.
I often wonder why the concept of negotiating (give and take) seems to be lost to a lot of people who post on this forum??
08-02-2008 | 09:40 AM
#57
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This definitely is worth repeating.
The 757 pay raise was given up in exchange for A380 rates and other possible gains. Give backs.
The 'productivity' enhancement of 2 vs. 3 person crews is very big.
The purchase plan is developing quickly. Expect, eventually, a 150+ 757 fleet in a currently shrinking domestic market. With the optimized schedule this equals more than 200 727s back in the day. Why the big buy? Because it's cheaper to operate than both the 727 AND the A310. Cheaper than a partially full A300 too. The crews flying those get widebody pay. I wonder if that matters? Bringing 2 757s into a market instead of a Bus and a 727 makes sense.
The company counts on this improved efficiency (give back for nothing in return) going forward. Their only regret is not doing it sooner. My only question is how many Airbus will we lose to the 757 buy? You can count on the Airbus flying more in China, staying in Europe, but it will be reduced in North America.
Watch F.E. in the MEC video a couple of times. He says we need to be engaged and passionate about negotiating to make it work for us. You bet the company is passionate about it. We have shown our hands on the LOA. The low voter turnout showed that we, as a membership, just don't care about FDAs! Don't expect folks to care enough to fall on their sword for 757 pay raise either. I guess if it was an LOA on the 777 pay rate that would be a different story....Or would it?
We all need to be aware of, AND CARE ABOUT, all the give backs being asked of us. Schedule, accepted fares, intl per diem, FDA LOA, over 60 guys being 'excessed' to the front while we are overmanned and excessing backward, 3 to 2 man cockpits, 757/777 pay rates. Did I miss anything? I think flight ops is doing enough to save the company $ right now. No need to panic. It's actually time to stand up and cry foul over some of these. All should be considered when we are negotiating nowadays.
The 757 pay raise was given up in exchange for A380 rates and other possible gains. Give backs.
The 'productivity' enhancement of 2 vs. 3 person crews is very big.
The purchase plan is developing quickly. Expect, eventually, a 150+ 757 fleet in a currently shrinking domestic market. With the optimized schedule this equals more than 200 727s back in the day. Why the big buy? Because it's cheaper to operate than both the 727 AND the A310. Cheaper than a partially full A300 too. The crews flying those get widebody pay. I wonder if that matters? Bringing 2 757s into a market instead of a Bus and a 727 makes sense.
The company counts on this improved efficiency (give back for nothing in return) going forward. Their only regret is not doing it sooner. My only question is how many Airbus will we lose to the 757 buy? You can count on the Airbus flying more in China, staying in Europe, but it will be reduced in North America.
Watch F.E. in the MEC video a couple of times. He says we need to be engaged and passionate about negotiating to make it work for us. You bet the company is passionate about it. We have shown our hands on the LOA. The low voter turnout showed that we, as a membership, just don't care about FDAs! Don't expect folks to care enough to fall on their sword for 757 pay raise either. I guess if it was an LOA on the 777 pay rate that would be a different story....Or would it?
We all need to be aware of, AND CARE ABOUT, all the give backs being asked of us. Schedule, accepted fares, intl per diem, FDA LOA, over 60 guys being 'excessed' to the front while we are overmanned and excessing backward, 3 to 2 man cockpits, 757/777 pay rates. Did I miss anything? I think flight ops is doing enough to save the company $ right now. No need to panic. It's actually time to stand up and cry foul over some of these. All should be considered when we are negotiating nowadays.
Last edited by Gunter; 08-02-2008 at 11:39 AM.
08-02-2008 | 04:43 PM
#59
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Joined: Nov 2005
Posts: 931
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From: 777 FO
This definitely is worth repeating.
The 757 pay raise was given up in exchange for A380 rates and other possible gains. Give backs.
The 'productivity' enhancement of 2 vs. 3 person crews is very big.
The purchase plan is developing quickly. Expect, eventually, a 150+ 757 fleet in a currently shrinking domestic market. With the optimized schedule this equals more than 200 727s back in the day. Why the big buy? Because it's cheaper to operate than both the 727 AND the A310. Cheaper than a partially full A300 too. The crews flying those get widebody pay. I wonder if that matters? Bringing 2 757s into a market instead of a Bus and a 727 makes sense.
The company counts on this improved efficiency (give back for nothing in return) going forward. Their only regret is not doing it sooner. My only question is how many Airbus will we lose to the 757 buy? You can count on the Airbus flying more in China, staying in Europe, but it will be reduced in North America.
Watch F.E. in the MEC video a couple of times. He says we need to be engaged and passionate about negotiating to make it work for us. You bet the company is passionate about it. We have shown our hands on the LOA. The low voter turnout showed that we, as a membership, just don't care about FDAs! Don't expect folks to care enough to fall on their sword for 757 pay raise either. I guess if it was an LOA on the 777 pay rate that would be a different story....Or would it?
We all need to be aware of, AND CARE ABOUT, all the give backs being asked of us. Schedule, accepted fares, intl per diem, FDA LOA, over 60 guys being 'excessed' to the front while we are overmanned and excessing backward, 3 to 2 man cockpits, 757/777 pay rates. Did I miss anything? I think flight ops is doing enough to save the company $ right now. No need to panic. It's actually time to stand up and cry foul over some of these. All should be considered when we are negotiating nowadays.
The 757 pay raise was given up in exchange for A380 rates and other possible gains. Give backs.
The 'productivity' enhancement of 2 vs. 3 person crews is very big.
The purchase plan is developing quickly. Expect, eventually, a 150+ 757 fleet in a currently shrinking domestic market. With the optimized schedule this equals more than 200 727s back in the day. Why the big buy? Because it's cheaper to operate than both the 727 AND the A310. Cheaper than a partially full A300 too. The crews flying those get widebody pay. I wonder if that matters? Bringing 2 757s into a market instead of a Bus and a 727 makes sense.
The company counts on this improved efficiency (give back for nothing in return) going forward. Their only regret is not doing it sooner. My only question is how many Airbus will we lose to the 757 buy? You can count on the Airbus flying more in China, staying in Europe, but it will be reduced in North America.
Watch F.E. in the MEC video a couple of times. He says we need to be engaged and passionate about negotiating to make it work for us. You bet the company is passionate about it. We have shown our hands on the LOA. The low voter turnout showed that we, as a membership, just don't care about FDAs! Don't expect folks to care enough to fall on their sword for 757 pay raise either. I guess if it was an LOA on the 777 pay rate that would be a different story....Or would it?
We all need to be aware of, AND CARE ABOUT, all the give backs being asked of us. Schedule, accepted fares, intl per diem, FDA LOA, over 60 guys being 'excessed' to the front while we are overmanned and excessing backward, 3 to 2 man cockpits, 757/777 pay rates. Did I miss anything? I think flight ops is doing enough to save the company $ right now. No need to panic. It's actually time to stand up and cry foul over some of these. All should be considered when we are negotiating nowadays.
08-02-2008 | 06:32 PM
#60
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Joined: May 2007
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From: Who knows...waiting for a bid
I don't want to get too far off base with all of this...but in defense of the bus in EU, right now, there are two 310's..which the cities they go to are getting bumped to a 300 for freight or making mulitiple stops to cover the freight. The freight in the rest of the system over here is fairly full. A lot of max gross take offs. For that, they are pulling multiple cities and adding the MD's on days to cover the extra freight.
As for the 75 coming over, one of the bigger issues for the ramps is compatability. The cans on the narrow bodies has a different break down vice the wb. The ramps are glad they aren't here for that because a transload from a 75 to an MD to get to Mem would be more difficult.
As for the economics of which is cheaper to operate, I don't think our pay really is that much of a factor. If the company is willing to do a bid to reallign the pay with seniority...obviously, the cost of NB vice WB is peanuts. Volume I think is a big factor too...
Who knows, I'm still waiting for the next bid to close and get sent to HKG for a vacation(every six months).
As for the 75 coming over, one of the bigger issues for the ramps is compatability. The cans on the narrow bodies has a different break down vice the wb. The ramps are glad they aren't here for that because a transload from a 75 to an MD to get to Mem would be more difficult.
As for the economics of which is cheaper to operate, I don't think our pay really is that much of a factor. If the company is willing to do a bid to reallign the pay with seniority...obviously, the cost of NB vice WB is peanuts. Volume I think is a big factor too...
Who knows, I'm still waiting for the next bid to close and get sent to HKG for a vacation(every six months).
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