Fedex Seat Bid?

[Ninerfan]

Anybody heard anything? Last note from the SCP said the seat bid was being "negotiated". Any new rumors? Come on Flex's/LCAs...you guys are usually good for some new rumint.

 

[Purple Speed]

I have heard that the bid will come out on June 15th from a few sources that range from an ACP to LCAs.

 

[Lupus]

Union and company are just about done w/ language to open new domiciles in Paris and Hong Kong. Once final, it will be sent to memebers for ratification. This will make the next seat bid Mid-August at the earliest.

 

[DLax85]

I have heard that the bid will come out on June 15th from a few sources that range from an ACP to LCAs.

I heard the same from a crashpad buddy, who heard it on the crew bus last night...so it MUST be true.

I guess we'll be able to verify that one in less then 48 hrs!

...just hoping there's some 757s to Memphis ---- though I heard from an ACP last month not to expect many on this bid --- mostly 757s to CDG on this bid and more 757s to MEM to come in a smaller bid in early 2008.

...all unsubstantiated rumors of course.

 

[Purple Speed]

In the news today...

FedEx to base pilots overseas

By Jane Roberts
June 15, 2007


FedEx Corp. plans to establish pilot bases in Paris and Hong Kong, saving it the cost of getting U.S.-based pilots to work and giving it more flexibility as it takes on DHL, the No. 1 courier company in Europe.

The Memphis-based company and the pilots' union are discussing an amendment to the pilots' contract, including cost-of-living stipends and details about the planes FedEx intends to fly in each market.
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"We've had very cordial dialogue with the company," said David Webb, chairman of the FedEx master executive council of the Air Line Pilots Association.

"We've had ongoing trips to Asia to look at housing, schools and hospitals. These two domiciles are going to be important to the future growth of Federal Express," he said.
The conversations, Webb said, have been going on for years.
He expects FedEx would like to have pilots bid on the new routes this year.
"We're working diligently to complete the negotiations. Everyone seems to be willing to listen to each other and make the best effort to have it work out," said Maury Lane, company spokesman. "But we're in no rush because we can keep doing business the way we are."
For pilots, particularly young pilots, an overseas base can offer chances to move up the pay scale with promotions not available in larger bases. For instance, a first officer in Memphis who lacks seniority to fly in the captain's seat could be senior in a smaller domicile.
Promotion from first officer to captain normally carries a 35 percent raise. A 15-year first officer moving to the most senior captain's seat would make an added $60,000 to $70,000 a year.
Traditionally, FedEx has agreed to pay moving costs to and from a domicile for pilots who stay three years.
Setting up foreign bases could save it millions in commuting costs. For instance, for June, FedEx has 31 flights to Europe to get 64 pilots in place. FedEx can expect to spend $330,000 on their tickets -- an annual rate of $3.9 million.
Figures are based on round-trip, first-class tickets that average $5,200, according to the company's flight operations Web site.
When domiciles are established, pilots who choose to commute from the United States, or from anywhere else, will have to pay their own fares.
FedEx has bases in Memphis, Los Angeles, Subic Bay and Anchorage, Alaska. Memphis is the largest.
"You want to have your pilots based where the flight originates because that's where you have the longest layovers," said Satish Jindel at S J Consulting near Pittsburgh. "It gives the pilots a better quality of life and better scheduling."
The change comes as FedEx adds capacity to its fleet and prepares to open its Asian hub in Guangzhou, China, in December 2008. FedEx's Asian business is growing by double digits; growth in Europe is slightly less.
Last fall, FedEx said it intended to spend $2.6 billion to buy 90 Boeing 757-200s, which it will deploy largely in Europe.
What makes the 757 attractive is that it can land anywhere FedEx now lands 727s.
The 757 can carry 20 percent more cargo and costs 25 percent less to operate than a 727, including the crew. It requires a two-person crew; the 727 requires three crew members. That means the company can carry packages at a lower cost per package, allowing it to increase profit margins in the overnight delivery sector, still its core business.

 

[Wozin8or]

Sorry this would have come sooner but I couldn't stop looking at Lupus' avitar! Just flew with a Capt. on the negotiating committee who confirmed what Lupus said. They are still working on LOA language (almost done) then it will go out for a general vote. After that the seat bid. So late summer looks likely!

 

[thunderworm]

doess anyone know if this bid or these bases will affect hiring enough to stave off the no hiring for a year rumor?

 

[SNIZ]

Cola

Jumpseating with a MEC rep yesterday and he was on the LOA conference call. Negotiations about some type of Cost of Living Allowance for both domiciles was being discussed, also foreign income tax relief/offsets are in the mix.

 

[DLax85]

doess anyone know if this bid or these bases will affect hiring enough to stave off the no hiring for a year rumor?

Do I "know"? No

...but, I doubt it.

However, if they are unable to fill the FO seats in these new foreign domiciles they may be forced to "direct hire" into these positions in a similiar way they filled 68 MD-11 FO slots to Anchorage last year after they went unfilled in the Mar 06 bid.

How does a 757 FO seat to Paris sound for a new hire???

Ah, if I was only a single, 24 year old, copilot living overseas again...those years in Tokyo/Pacific were the best!!

 

[DLax85]

Jumpseating with a MEC rep yesterday and he was on the LOA conference call. Negotiations about some type of Cost of Living Allowance for both domiciles was being discussed, also foreign income tax relief/offsets are in the mix.

Did he confirm the "China-area" domicile was Hong Kong....the Paris domicile has been "substantiated rumor" for quite some time, but I was under the impression the "China-area" domicile was actually the last bit that needed to be decided.

While very croweded, and ex$pensive, HK will be much better then mainland china --- English speaking, lots of other expatriates, easy access to other Asian/Pacific cities, and greater selection of private schools.

Hopefully, the company will be funding schools --- if not, it will be very difficult to get folks with middle school or high school kids to go abroad.

 

[Falconjet]

Uh, don't forget that they could easily do a displacement bid and effectively force people to the new domiciles.

We are way fat in the back of the Boeing and the 10, and I doubt we will be hiring any time soon, no matter what the new domiciles turn out to be.

FJ

 

[DLax85]

Uh, don't forget that they could easily do a displacement bid and effectively force people to the new domiciles.

We are way fat in the back of the Boeing and the 10, and I doubt we will be hiring any time soon, no matter what the new domiciles turn out to be.

FJ

FJ -

Do you know if FEDEX has ever actually done a displacement bid for "domiciles" (...not aircraft)?

Even when FEDEX setup Subic, it did it "volunteer only" --- correct?

Thanks.

 

[ATLDRVR]

Couple of questions:

1. I am getting ready to submit an application to FedEx, what is your opinion on future hiring?

2. I do not have any contacts at FedEx, any suggestions about how to get an interview?

Thanks

 

[Deuce130]

Hiring in the future will continue. I also suggest you find some contacts at Fedex, or your chances of being hired are nil. I know that's tough, and I know that's not always fair, but it's the way it is.

 

[FlyBoeingJets]

However, if they are unable to fill the FO seats in these new foreign domiciles they may be forced to "direct hire" into these positions in a similiar way they filled 68 MD-11 FO slots to Anchorage last year after they went unfilled in the Mar 06 bid.

1) about 200 junior folks looking to upgrade on the first bid since their hire
2) about 140 of them don't qualify for passover pay (727 FO)
3) lots of folks getting displaced or escaping from DC10 FO before the end
4) ANC FO's looking to come back to MEM
(including more than a couple of the 68 newhires)
5) Subic folks coming to US cause they don't want to be in Hong Kong

First question facing newer Purple pilots--How many widebody MEM FO slots will be available for folks facing their first bid since hire (even without age 65 passed)?

Rough guess- not enough. Many folks on their first bid after getting hired will be looking at Anchorage, Paris or Hong Kong if they want a window seat.

Newhires may be looking at Paris or Hong Kong, but the company will very closely manage who goes to these domiciles. But I figure the number will be very low. I think the 100+/- on the property now facing SO pay for 3 years or foreign domicile FO pay will take the foreign FO slots. At least 50 of those will have to go to Asia or Europe.

I believe that is why they overhired into the SO seat. At least folks will get to "choose" to go overseas instead of assigning new, off the street and po'd folks because they were "forced" into it. That causes too many problems.


Disclaimer :

Just my WAG...
Someone really should look at the numbers closer.
Assumes few senior folks want HKG or CDG FO.
Assumes traditional stagnation in 727 FO seat and further reduction of the 727 fleet. At least 4 more are on the way out.

 

[Sluggo_63]

How does a 757 FO seat to Paris sound for a new hire???

It sounds like you're going to have a bunch of poor FOs in Paris.

 

[SNIZ]

Dlax,

Looks like the CA article pretty clearly states Hong Kong and Paris.

 

[Sedona16]

Where does the MD11 fly out of Anchorage? How long are the layovers? TKS

 

[DLax85]

It sounds like you're going to have a bunch of poor FOs in Paris.

...I think it all depends on the COLA.

...but then again, young, single, "shared apartment", easy travel throughout Europe (by train/car) or Asia by plane (FDX jumpseat) ---- perhaps ca$h poor, but rich in sooooooo many other ways.

...Paris or Hong Kong, it doesn't matter --- if you are single with no immediate US committments ---- go for it!

..truly an opportunity of a lifetime.

 

[Phaedrus]

Where does the MD11 fly out of Anchorage? How long are the layovers? TKS

Anywhere and everywhere. For example, this month I've done the Pacific (Japan, China), will be going domestic next, and at the end of month headed to Stanstead/Paris.
Layovers depend on many things, but it sure seems like they're getting shorter and shorter.

 

[AlbieF15]

...I think it all depends on the COLA.

...but then again, young, single, "shared apartment", easy travel throughout Europe (by train/car) or Asia by plane (FDX jumpseat) ---- perhaps ca$h poor, but rich in sooooooo many other ways.

...Paris or Hong Kong, it doesn't matter --- if you are single with no immediate US committments ---- go for it!

..truly an opportunity of a lifetime.

True. But what was "fun" at 28 or even 35 is a pain in the neck at 45 with a house full of kids.

That aside--pilots are creative. Some folks will figure it out. And for a guy in a base with direct flights to Europe (MSP, JFK, MIA, ATL) it might even be "commutable". Some guys have made ANC work for years.

 

[Sedona16]

Can you tell me how many hours the typical layover is? How is droning along for 8 or more hours at a time?

Anywhere and everywhere. For example, this month I've done the Pacific (Japan, China), will be going domestic next, and at the end of month headed to Stanstead/Paris.
Layovers depend on many things, but it sure seems like they're getting shorter and shorter.

 

[Phaedrus]

Dude, unless you're thick or flame-baiting you'd get it. Layovers are dependent on trips/scheduling/etc. Some are long, some are short. As for "droning" for 8 hours, the only time I've experienced that was when I flew with this guy who wouldn't stop talking about.....nevermind.

 

[DLax85]

True. But what was "fun" at 28 or even 35 is a pain in the neck at 45 with a house full of kids.

Agree!!

...I'm 7 weeks from 44 with 3 kids in the house...and more impotantly a rising 9th grade girl that I already promised would never have to move again before college.

...now when my youngest is finally out of the house in 11 yrs, the boss has already cleared a bid for "Paris" or "Hong Kong".

Nothing like doing those last 5 yrs overseas reliving your first 5 yrs!!....then back to the land of the big BX to enjoy the grandkids.

 

[Wozin8or]

Solid word is: Paris and Hong Kong. Looking at $2700 per month Cola and Fedex pays your foriegn Taxes. Some big company (I think it was Price Waterhouse but not sure) will do your taxes and just tell Fedex what to pay on that. 10K move package and up to 4k a year to put your stuff in storage. No help with school for the kids or anything else. Ground transport from Hong Kong. And you have to live in the Paris area. (can't take the money and live in Italy or some other country.

 

[sandman2122]

I'll pass........................

 

[SNIZ]

Hard to Fill

I'll bet these domiciles will be hard to fill. Not enough bennies to overcome the costs.

So...HK will be an A300 domicile and Paris a 757 domicile. Is that correct?

 

[DLax85]

I'll bet these domiciles will be hard to fill. Not enough bennies to overcome the costs.

So...HK will be an A300 domicile and Paris a 757 domicile. Is that correct?

Previous "rumors' had HK as A300 initially (...movement from Subic) and then a "mix" or a "transition" to MD-10/MD-11s also...I believe Paris will be 757 only.

 

[DLax85]

Solid word is: Paris and Hong Kong. Looking at $2700 per month Cola and Fedex pays your foriegn Taxes. Some big company (I think it was Price Waterhouse but not sure) will do your taxes and just tell Fedex what to pay on that. 10K move package and up to 4k a year to put your stuff in storage. No help with school for the kids or anything else. Ground transport from Hong Kong. And you have to live in the Paris area. (can't take the money and live in Italy or some other country.

Will the amount of COLA be "seat" dependent or $2,700 for both seats?

I'd also hope there is an upgraded health insurance aspect that gives access to high quality, English-speaking doctors....also, some type of "free flights" home every year or two for family members....many expat packages include these benefits.

If there is truly no additional funds above the COLA for schools, these slots will in fact go very senior and very junior by pilots with zero or perhaps one child --- housing and quality, private, English-speaking schools are extremely expen$ive.

Of course, you'll have a few folks with "special situations" --- a local spouse or a spouse who's also employed abroad with good benefits.

I can't believe either destination is commutable from the US.

 

[Phaedrus]

Why would COLA be seat dependent? Does it somehow cost more to live as a captain than a FO (obvious jokes aside...)?