I’m going through the Section 1 examples, and I don’t understand how they’re calculating some of these numbers.

For example:


If the total fleet size reduced in CY2023 and the wet lease aircraft operated 1250 block hours, the penalty owed would be $250,000 (i.e., (1250-1000) x $1,000).


Why in this example are they subtracting “1000” from the block hours?

 

Because the first 1% (1000 hours) is penalty free in that example.

 

Where does it say that and how is it calculated?

 

There is a chart directly above that example, on TA page 7. It is based on how many FedEx aircraft are added during a fiscal year. If our fleet shrinks you use the Negative column. For 1.25% wet leased hours, the first row shows the first 0-1% (Ex: hours 0-1000) is penalty free. The row below that shows the penalty rate for the remaining 0.25% (hours 1001 thru 1250).

 

Ok, thank you. That chart was confusing the crap out of me, as I thought it was expressing the percentage as a fleet reduction/addition calculation. Thanks again!

 

AND…if you’re furloughed, you STILL get the check….so there’s that! Yay…. That alone should, SHOULD send a shiver through EVERYONE’S spine here…since when do we work while our pilots are on furlough?

There’s a name for that….

 

That is a huge red flag. We should not even be entertaining the possibility of allowing the company to wet lease during a furlough - (hopefully we will never have one but this makes me fear they are actually pre-planning one AND will make it last longer by wet leasing)

 

Sounds like the 2015 contract was a better one overall. I can’t imagine all the concessions passing with such a professional group pilots. On the bright side round will be fast in comparison. Thinking less than 6 months to get it acceptable.

 

Totally just my take on how I felt. I remember the feeling I had on first read of the 2015 contract. My feeling on my first read with this one was exponentially worse.

 

I've been curious about this, but unable to research any kind of factual data. I personally, and realistically, understand that wet leasing has it's place in the overall business model. It seems like there are instances where the flexibility is advantageous. Short range opportunities to capitalize on, where our current structure cannot serve. Copy.

Where we all have issue is when flights that are normally, or could be, flown by FX pilots are taking place outside of that scenario. Like seeing Atlas 74's blasting off to their HNL layover all spring.

My question is the cost-to-revenue comparison for those flights. At the end of the day, what costs the company more? Hiring Atlas to fly that freight or paying our pilots, mechanics, dispatchers, and everyone/everything that goes into our 777 flying the same route? My assumption is that all purple assets generates more revenue, otherwise what is the business model based on? And ultimately, if that is the case, then what would drive the company to increase wet-leasing in place of purple assets being utilized?

Fred was a great leader and seemed to care more for his pilot employees. He also had a knack for aviation it seems. But, he's also smart and I can't imagine him running the airline the way he did simply out of pride. Not to the detriment of lost revenue for five decades. So, is this a new CEO and DRIVE issue, or is this pain truly because of the economic downturn we're living in?

Outsourcing to ASL is a separate topic, to my knowledge. But as many have pointed out, international rules dont allow us to control that aspect of their planning. I have seen the suggestion that a mutual agreement between the union and the company can exist and be free of the RLA restrictions, but has any other company successfully negotiated something similar?

Bottom line, what has changed in the last 10 months that now has wet-leasing and outsourcing the entire airline as a real possibility? Not rhetorical, actual question. I'm very concerned as a newer pilot here. If the answer is that we gain more by flying our own freight, then are we possibly getting too invested in the idea of the company wet-leasing us to death?