Rock

There is no precedent for FedEx to use contract lift for sustained large operations. Feeders, yes. But TNT was not a feeder outfit. If the deal goes through, I suspect FedEx will be significantly enhancing its fleet in Europe and probably supporting it with SIBA type schedules.

PicklePausePull

Rumor: Goodbye CGN; Hello 767 from MEM. No SIBA. Scheds to originate and terminate from MEM, fly 757 intra-EU with same crew that flew 767 over.

Reasons given: economic use of capital, no more German work rule difficulties, max flex to new sort facilities.

Big Gotcha: how much flying intra-EU stays with EU co. After TNT merger. Of course, ALPO too busy doing other things than consider these implications and interject them into negotiations. Always negotiating the last contract.

Raptor

I originally thought the 767 transatlantic and then 757 might be a plan too. But, the more I thought about it, I'm not so sure. The pilots from MEM would fly under normal international rules. They would have to get the enhanced rest unless the "captain in a can" is approved.

FedEx gets a lot more productivity using the domestic rules for the CGN base. I haven't heard of any problems with the Germans or the basing yet--has anyone?

Raptor

That was FedEx expanding MXP as the 3rd European hub:

http://aircargoworld.com/fedex-to-expand-express-capacity-in-milan/

As it moves forward with its planned takeover of TNT, FedEx Express made moves to strengthen its presence in Europe by launching a US$112 million expansion at Milan Malpensa Airport. The expansion, measuring 115,000 square feet, is scheduled to be completed sometime in mid-2016 and will accommodate the first daily courier connection from Italy to the United States.

FedEx said it expects the facility’s staff of 200 to handle 20,000 express shipments each day, coordinate 44 weekly flights to and from Malpensa, and manage 480 connections by land. The facility is expected to become FedEx’s third-largest hub in Europe, behind Paris and Cologne. Almost 50,000 square feet of the facility, known as Cargo City, will be dedicated to warehousing, 66,000 square feet to vehicle parking and 3,300 square feet to office space.

Malpensa currently handles about 500,000 tonnes of cargo each year, and said it hopes to double that number to 1 million tonnes within two years. SEA Group, which operates Malpensa and Milan Linate Airport, is investing US$16.85 million into the Cargo City project.

The recent expansion investments are part of FedEx’s overall strategy of opening more than 100 new courier service branches in three years across the Europe, Middle East and Africa (EMEA) region. So far, the company has opened 24 new branches in less than three years, created 300 jobs and introduced the “first and only direct flight from Italy to the FedEx global hub in Memphis, Tennessee,” said Vito Bernardi, Fedex’s managing director for properties and fleet, EMEA.

Rock

Yeah, I did the same thing. In addition, take the current CGN bidpack, double it with the new TNT flying, and then fill all those lines with 767 crews shuttling 76's to and from Memphis. I just don't think that's possible. If nothing else, they'd have to have a heck of a lot of hotel standby crews. I recall the rumors about doing something similar with MD-10's in Asia using MD-11 crews. Not sure what killed that. Furthermore, would the 76's replace MD-11's flying frieght across the pond? I don't know, but I would suspect that adding TNT business to the mix would add significantly to that load. So we're going to use smaller airplanes to move more freight?
Finally, I heard our 76's aren't certed for ETOPS yet and I don't think there's any update on that changing in the near future.

CloudSailor

Exactly what I heard repeatedly while in CGN. We just need more 767's on property to do it ŕ la UPS.

CGN domicile and productivity have been more efficient compared to SIBA. Getting rid of the domicile and operating the 767 across and 757 intra, even more productive and cost effective.

Also heard (from guy who's brother is at Boeing) 767 will be getting a redesigned cockpit, with rest compartment, courtesy of the Air Force dollars.

Raptor

I've heard we purchased 17 ETOPs "kits".