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Cargo pilots move atop industry pay ladder
Some fliers from financially troubled passenger airlines applying at UPS
By DAVE HIRSCHMAN
The Atlanta Journal-Constitution
Published on: 01/04/05
In aviation's rigid hierarchy, air cargo pilots have always been a step below their passenger airline counterparts.
Air cargo pilots traditionally worked for smaller, less profitable companies, they primarily flew at night, and they earned less money.
TYPICAL SALARIES
Senior captains:
• UPS: $178,848
• FedEx: $174,048
• Southwest: $166,608
• Delta: $166,140
• American: $145,920
* Figures based on captains with 10 years' seniority who fly the minimum number of hours.
Source: airlinepilotpay.com
Not anymore.
As passenger airlines have borne the brunt of post-9/11 furloughs and pay cuts, cargo carriers UPS and FedEx have moved to the top of pilot pay scales, and their wings have gained new luster. UPS says it's been inundated with thousands of applications for 100 new pilot positions — and many of the pilots looking for jobs are passenger airline fliers.
"Historically, we've seen a lot of pilots go from cargo to passenger airlines," said Kit Darby, founder of AIR Inc., an Atlanta-based pilot career counseling firm. "Now, for the first time, it's going the other way. And it may be a permanent change. Cargo has become a more desirable place to be."
UPS and FedEx are growing international companies that dwarf U.S. airlines in revenue, profit and stock value. And they are less threatened by oil price spikes because fuel is a smaller percentage of their overall costs, and they usually pass on increases to customers through surcharges.
Cargo carriers have been growing for the last three years as legacy passenger airlines have suffered their worst setbacks ever.
"Boxes aren't afraid to get on an airplane because of terrorism," Darby said. "And they don't get sick from SARS."
'A solid company'
About 10 percent of U.S. airline pilots work for cargo companies, so they are a relatively small group. But UPS and FedEx avoided furloughs during the post-9/11 free fall, and UPS has resumed hiring as shipping demand has grown.
Each airline has its own seniority list that determines the types of aircraft pilots fly, their schedules and their routes. It's rare for pilots to move from one major airline to another because they would have to start at the bottom of the pecking order.
But UPS says it's getting applications from passenger airline fliers in search of stability and security.
"There has been a big culture shift," said Mark Giuffre, a spokesman for UPS Airlines in Louisville, Ky. "Pilots are seeking UPS out because it's a solid company that provides pensions and historically has given pilots the chance for rapid career advancement and international flying."
UPS and FedEx are growing fastest in Asia and are adding trans-Pacific routes as quickly as they can get them. They are also adding new planes. FedEx is the first cargo company to order the Airbus A380, which will be the world's largest commercial jet when it starts flying next year.
UPS and FedEx pilots say their jobs are far from perfect.
UPS pilots are seeking pay, retirement and work rule benefits in federally mediated contract talks that have already stretched a year beyond their amendable date, and the two sides are just beginning to address thorny pay and work rule issues. The National Mediation Board has set a goal of finishing negotiations by the end of the first quarter.
FedEx pilots ditched their independent union two years ago and have joined the Air Line Pilots Association, which promises greater resources and a harder line in negotiations.
Gritty side of life
Chuck Patterson, 48, a UPS MD-11 captain who used to fly passengers at Allegheny Airlines, says cargo pilots fly demanding day/night schedules and work in gritty, industrial areas that few airline passengers ever see.
"One thing I miss about passenger flying is seeing the same faces, the same gate agents, the same passengers on certain trips," he said. "We work on the freight side of the airport. It's dark, it's dirty, and it's not a pleasant place to be."
The jobs are attractive, however, because UPS and FedEx are financially sound and growing.
"Pilots are looking for long-term stability," Patterson says. "We don't know until the day we retire whether we made the right choice."
Brian Gaudet, spokesman for the Independent Pilots Association, which represents UPS fliers, says some passenger airline pilots still earn more than cargo fliers on a per-trip basis. But he says pilots widely recognize that air cargo companies have a better, more durable business model.
"They've realized companies can make far more money loading small packages and cargo on airplanes than filling them with passengers that require legroom, drinks and entertainment," he said.
Gaudet said UPS pilots are determined to negotiate a labor contract that "reflects their contributions to the company's success."
"It's a backhanded compliment to say that we're the highest-paid in the industry," he said.
"The passenger carriers have taken some big steps back. We're determined to step forward."
Some fliers from financially troubled passenger airlines applying at UPS
By DAVE HIRSCHMAN
The Atlanta Journal-Constitution
Published on: 01/04/05
In aviation's rigid hierarchy, air cargo pilots have always been a step below their passenger airline counterparts.
Air cargo pilots traditionally worked for smaller, less profitable companies, they primarily flew at night, and they earned less money.
TYPICAL SALARIES
Senior captains:
• UPS: $178,848
• FedEx: $174,048
• Southwest: $166,608
• Delta: $166,140
• American: $145,920
* Figures based on captains with 10 years' seniority who fly the minimum number of hours.
Source: airlinepilotpay.com
Not anymore.
As passenger airlines have borne the brunt of post-9/11 furloughs and pay cuts, cargo carriers UPS and FedEx have moved to the top of pilot pay scales, and their wings have gained new luster. UPS says it's been inundated with thousands of applications for 100 new pilot positions — and many of the pilots looking for jobs are passenger airline fliers.
"Historically, we've seen a lot of pilots go from cargo to passenger airlines," said Kit Darby, founder of AIR Inc., an Atlanta-based pilot career counseling firm. "Now, for the first time, it's going the other way. And it may be a permanent change. Cargo has become a more desirable place to be."
UPS and FedEx are growing international companies that dwarf U.S. airlines in revenue, profit and stock value. And they are less threatened by oil price spikes because fuel is a smaller percentage of their overall costs, and they usually pass on increases to customers through surcharges.
Cargo carriers have been growing for the last three years as legacy passenger airlines have suffered their worst setbacks ever.
"Boxes aren't afraid to get on an airplane because of terrorism," Darby said. "And they don't get sick from SARS."
'A solid company'
About 10 percent of U.S. airline pilots work for cargo companies, so they are a relatively small group. But UPS and FedEx avoided furloughs during the post-9/11 free fall, and UPS has resumed hiring as shipping demand has grown.
Each airline has its own seniority list that determines the types of aircraft pilots fly, their schedules and their routes. It's rare for pilots to move from one major airline to another because they would have to start at the bottom of the pecking order.
But UPS says it's getting applications from passenger airline fliers in search of stability and security.
"There has been a big culture shift," said Mark Giuffre, a spokesman for UPS Airlines in Louisville, Ky. "Pilots are seeking UPS out because it's a solid company that provides pensions and historically has given pilots the chance for rapid career advancement and international flying."
UPS and FedEx are growing fastest in Asia and are adding trans-Pacific routes as quickly as they can get them. They are also adding new planes. FedEx is the first cargo company to order the Airbus A380, which will be the world's largest commercial jet when it starts flying next year.
UPS and FedEx pilots say their jobs are far from perfect.
UPS pilots are seeking pay, retirement and work rule benefits in federally mediated contract talks that have already stretched a year beyond their amendable date, and the two sides are just beginning to address thorny pay and work rule issues. The National Mediation Board has set a goal of finishing negotiations by the end of the first quarter.
FedEx pilots ditched their independent union two years ago and have joined the Air Line Pilots Association, which promises greater resources and a harder line in negotiations.
Gritty side of life
Chuck Patterson, 48, a UPS MD-11 captain who used to fly passengers at Allegheny Airlines, says cargo pilots fly demanding day/night schedules and work in gritty, industrial areas that few airline passengers ever see.
"One thing I miss about passenger flying is seeing the same faces, the same gate agents, the same passengers on certain trips," he said. "We work on the freight side of the airport. It's dark, it's dirty, and it's not a pleasant place to be."
The jobs are attractive, however, because UPS and FedEx are financially sound and growing.
"Pilots are looking for long-term stability," Patterson says. "We don't know until the day we retire whether we made the right choice."
Brian Gaudet, spokesman for the Independent Pilots Association, which represents UPS fliers, says some passenger airline pilots still earn more than cargo fliers on a per-trip basis. But he says pilots widely recognize that air cargo companies have a better, more durable business model.
"They've realized companies can make far more money loading small packages and cargo on airplanes than filling them with passengers that require legroom, drinks and entertainment," he said.
Gaudet said UPS pilots are determined to negotiate a labor contract that "reflects their contributions to the company's success."
"It's a backhanded compliment to say that we're the highest-paid in the industry," he said.
"The passenger carriers have taken some big steps back. We're determined to step forward."
