ATLAS and UPS

[FreightNazi]

UPS can operate the former Menlo operation out of DAY with contractors for up to one year from the date of purchase.

 

[Big Beer Belly]

Well I am still flying in Dayton and UPS just re upped our contract for another 5 years, because we haul hazardous cargo and packages over 70lbs which UPS cannot.

boomlrd,

Do you know how many contract aircraft currently fly the freight out of Dayton on a daily basis? Thanks ...

BBB

 

[boomlrd]

Not sure of the total number, though CAT does have 18 B-727s in Dayton and have been asked to increase to 25 sometime thoughout the year. As to exact numbers of other contractors, I have no idea. Express.net and Kallita, and a couple others have a smaller number of aircraft there. As far as the statement that contractors can only fly for one year out of Dayton now that its a UPS op, its incorrect. CAT has just renegotiated a 5 year deal for UPS, if UPS could haul hazardous and packages over 70lbs., that might have been true. However, UPS cannot, and will not in the near future, at least five more years. Besides, UPS management loves the cheap labor it gets through the contractors, someones got to carry the cargo for UPS.

 

[FreightNazi]

Not sure of the total number, though CAT does have 18 B-727s in Dayton and have been asked to increase to 25 sometime thoughout the year. As to exact numbers of other contractors, I have no idea. Express.net and Kallita, and a couple others have a smaller number of aircraft there. As far as the statement that contractors can only fly for one year out of Dayton now that its a UPS op, its incorrect. CAT has just renegotiated a 5 year deal for UPS, if UPS could haul hazardous and packages over 70lbs., that might have been true. However, UPS cannot, and will not in the near future, at least five more years. Besides, UPS management loves the cheap labor it gets through the contractors, someones got to carry the cargo for UPS.

Actually my statement regarding UPS having up to one year from date of purchase to continue using contractors is correct. The UPS/IPA contract has such language in it and it's up to UPS to either follow the language or risk a confrontation over it with the IPA. UPS does carry certain hazmats and certainly carries packages over 70lbs.

Certain UPS divisions have been known in the past, and there is no reason assume they still don't behave this way, to act independently of one another, not knowing how the actions they take will affect other UPS operations. They have signed contracts and made deals without knowing the implications on other UPS divisions. Often they were forced to go back and cancel or modify deals that they made once they found out the impact on the other divisions. So seeing that SCS signed a five year renewal with CAT in no way means that CAT will indeed be flying as a contractor for the next 5 years. I could easily see UPS SCS signing deals with contractors without knowing of the scope requirements of the airline.

Interestingly enough, the next round of talks between UPS and IPA include talks on scope and you can be certain that Menlo will be at the top of the list.
Less than two weeks ago I had a conversation with the system chief pilot and he told me that the Menlo aquisition would lead to a significant amount of new flying for IPA crews out of DAY and would require UPS to continue to hire throughout 2005.