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-   -   FDX: any news on the USPS contract renewal (https://www.airlinepilotforums.com/cargo/70400-fdx-any-news-usps-contract-renewal.html)

Sideshow Bob 10-09-2012 07:22 AM


Originally Posted by Unknown Rider (Post 1273715)
You've got 6 months to ramp up, you don't think you can do it?

They COULD, but doesn't mean they WOULD. As is better for line pilots Fed Ex seems to believe in profit growth through revenue growth/growing market share. Since our ex-CFO became CEO the UPS strategy is primarily profit growth through cost controls and efficiency improvements. The results speak for themselves, but they may not be sustainable, and if (big if it seems) sustainable economic growth returns UPS will definitely be behind (as usual) to capitalize on it. They seem to be betting that things will continue to decline, and if true we are far better postured than Fed Ex to weather the end of the world, as apparently our CEO sees it. Postal yield is anemic in UPS' eyes, and they really hate the idea of buying more airplanes or hiring more pilots...for now, with THIS CEO.

I bet even money they're just bidding the contract to mess with Fed Ex and make them lower their yield on a contract. Right out of the Warton Business School handbook.

Busboy 10-09-2012 08:32 AM


Originally Posted by Flyinhigh (Post 1273871)
Massive hiring starting in the Fall of 2000. First USPS flight was flown 10 months later. Guess who paid for all of the training? It was part of the original contract with the USPS that they would pay for all of the training for our newhires. I was working in the 727 Training Department at the time and was part of the team setting up the training plans (off-site locations, numbers per month, etc.) Boss kept telling me to stop worrying about what it cost.
Bet that won't be in the next contract. So, advantage FedEx. We have the manning to do the contract (minus the retirements coming). Anyone else would have to ramp up hiring and training at their own expense.

And your point is what? UPS doesn't have the money to train the crews?

I don't know if they really want the USPS contract or not...But, anyone that thinks UPS CAN'T do it, needs to be drug tested.

Flyinhigh 10-09-2012 10:11 AM


Originally Posted by Busboy (Post 1273999)
And your point is what? UPS doesn't have the money to train the crews?

I don't know if they really want the USPS contract or not...But, anyone that thinks UPS CAN'T do it, needs to be drug tested.

I agree that UPS has the deep pockets to make it happen. However, if the training costs are not included in the next contract, then UPS will have to put out millions to ramp up hiring and training to fly the extra daytime stuff. This would shrink the profit margin a great deal. May not be worth it. My point is, FedEx already has the bodies on property and is flying the USPS lines everyday.
Our up front costs are already done and were paid for by the USPS. We just need a few replacement parts every month to handle attrition.
Also, it took FedEx 10 months from contract award to first USPS flight. So, even if FedEx doesn't keep the contract, it will be a year before the flying stops.

Precontact 10-09-2012 12:58 PM

That's why I think 50/50 mix or close to something like that.

L'il J.Seinfeld 10-09-2012 02:36 PM


Originally Posted by Sideshow Bob (Post 1273964)
They COULD, but doesn't mean they WOULD. As is better for line pilots Fed Ex seems to believe in profit growth through revenue growth/growing market share. Since our ex-CFO became CEO the UPS strategy is primarily profit growth through cost controls and efficiency improvements. The results speak for themselves, but they may not be sustainable, and if (big if it seems) sustainable economic growth returns UPS will definitely be behind (as usual) to capitalize on it. They seem to be betting that things will continue to decline, and if true we are far better postured than Fed Ex to weather the end of the world, as apparently our CEO sees it. Postal yield is anemic in UPS' eyes, and they really hate the idea of buying more airplanes or hiring more pilots...for now, with THIS CEO.

I bet even money they're just bidding the contract to mess with Fed Ex and make them lower their yield on a contract. Right out of the Warton Business School handbook.

Wonder what they teach at Wharton?

L'il J.Seinfeld 10-09-2012 02:40 PM


Originally Posted by FDXLAG (Post 1273640)
Wait a minute, you guys folded just because we folded and that is out fault.

But be a little more specific, does the last contract rounds mean 2006 when you guys signed before we did? Or our 2011 contract extension?

In 2006 you guys asked for less pay than what UPS had already agreed to pay us. We nearly had a done deal but ALPA went to the NMB asking for less than what we had already negotiated. UPS took it off the table. It's a simple truth and not intended to offend the rank and file line pilot at FDX. But your union representation is an absolute joke.

Sideshow Bob 10-09-2012 05:07 PM


Originally Posted by L'il J.Seinfeld (Post 1274180)
Wonder what they teach at Wharton?

Spelling for one. :D

golfandfly 10-09-2012 05:46 PM


Originally Posted by L'il J.Seinfeld (Post 1274183)
In 2006 you guys asked for less pay than what UPS had already agreed to pay us. We nearly had a done deal but ALPA went to the NMB asking for less than what we had already negotiated. UPS took it off the table. It's a simple truth and not intended to offend the rank and file line pilot at FDX. But your union representation is an absolute joke.

Give me a break.. Don't blame someone else because you can't close your deal..

I'd take our contract over UPS's any day. And, quit your whining!

TheBaron 10-09-2012 11:22 PM


Originally Posted by L'il J.Seinfeld (Post 1274183)
In 2006 you guys asked for less pay than what UPS had already agreed to pay us. We nearly had a done deal but ALPA went to the NMB asking for less than what we had already negotiated. UPS took it off the table. It's a simple truth and not intended to offend the rank and file line pilot at FDX. But your union representation is an absolute joke.

Huh? I sure don't remember us going into mediation in 2006.

Commando 10-10-2012 07:02 AM


Originally Posted by golfandfly (Post 1274265)
Give me a break.. Don't blame someone else because you can't close your deal..

I'd take our contract over UPS's any day. And, quit your whining!

It is True. ALPA FDX did come in at around 212 an hour. UPS IPA was very close to getting 250 an hour. This was in 2006 Remember. So the Top hourly pay would be much higher today.

So the Mediator said no way IPA. And so did UPS. When they settled for 223. Imagine what ALPA got? 224! ALPA did wimp out and came in at 212 an hour for who knows why.

My biggest beef is the EGO's involved. Why can't ALPA and the IPA talk before doing this?

And to really go Crazy, Delta and UAL pay in 2004!!! was 318.00 an hour for top widebody and 262.00 for 767 pay. EIGHT years ago. In todays dollars with 2% inflation, we would be way up there.

9-11 was a blessing for UPS and FDX. When it comes to pay for the pilots.


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