FedEx 737s

[Goose17]

News
FedEx invites 737 conversion bids

--------------------------------------------------------------------------------

Boeing 737-300/400 cargo conversion suppliers are responding to a request for proposals (RFP) from FedEx Express for 25 aircraft plus 25 options.

FedEx has asked Taiwan's Inter-Continental Aviation Services (ICAS), Israel Aircraft Industries (IAI) and Pemco Aviation Group to price their 737 conversion products. The RFP suggests FedEx has selected the 737-300/400 over the Boeing 757-200 as the replacement for its fleet of over 100 Boeing 727-100/200s (Flight International, 15-21 July 2003). But sources say FedEx is still looking at a cargo version of the 737-900/900X for its long-term needs.

They add that proposals include conversions at several sites. ICAS is proposing converting aircraft at Taiwanese maintenance and repair organisation Air Asia; IAI at its own facility in Israel or at Garuda Maintenance Facility AeroAsia in Indonesia; and Pemco at its own facility in Alabama or at new partner Malaysia Airlines.

FedEx may also pursue its own supplemental type certificate (STC) rather than using the STC already held by IAI or Pemco, or the new STC ICAS plans to apply for next year with assistance from partners Boeing and Flight Structures. FedEx is looking at a variety of sources for the aircraft, including leasing.

FedEx is expected to replace its 727 fleet quickly to avoid forthcoming airworthiness directives and maintenance overhauls. Sources say FedEx's 737-300/400 purchase could be much larger than 50 aircraft and be spread across several conversion centres.

ICAS, IAI and Pemco declined to comment, citing non-disclosure agreements with FedEx.

Brendan Sobie
Flight International

03/02/2004

 

[Falconjet]

Giddy Up!

I hope they expand the proposal and get each contractor to convert about 50 each. That might get things moving in the right direction.

FJ

 

[h.simpson]

saw the same article on a boeing site.

 

[Huck]

FedEx is expected to replace its 727 fleet quickly to avoid forthcoming airworthiness directives and maintenance overhauls.

Spectacularly uninformed, or else all the fleet plans and internal sources are bogus.

Referring to the -100's only, maybe?

 

[NTSing]

Huck,

I think this is for the -100s. I've been told that the 737 300/400 has the same number of can positions as the 100s do.

 

[Goose17]

guys in the know

Internal guys that have heard the briefings have said like stated above. The 300/400 will replace the -100s, but also some -200s. There has been some 200s that have come due for checks that have had too much corrosion to make it cost effective to repair. Those -200s will be parked along side the -100s in the desert for when the big "war of attrition" takes place with UPS!

; )

Goose17

 

[33A]

I heard that the company wants eight or so 737's on the property by June of next year.

727's will stay around till 2012 or whatever their original phase-out year was. Of the 727's that are still here Jan '05 some will be equipped with a third altimeter (which will be digital) making the aircraft RVSM capable. The remaining 72's, assuming we don't get an RVSM exception, will be short-haul aircraft flying below 290.

And IMHO the published fleet plans are rough plans only. If I ran fleet planning I wouldn't want my competition to know my game plan; if for no other reason it would drive up the price of sparcely available aircraft.

Let's see if the fleet plan is updated after the Board of Director's meeting.

 

[moneyshooter]

When is the Board of Directors meeting?

 

[Spur]

US Air Prepays Part Of ATSB Loan To Gain Additional Time
By Steve Lott
03/15/2004 09:50:04 AM


In a controversial 2-to-1 vote last week, the Air Transportation Stabilization Board agreed to revise conditions for its guarantee of the $1 billion loan made to US Airways on March 31, but the amended deal includes a covenant that requires the airline to cut its losses significantly this year and return to profitability in 2005.

"This agreement gives us a narrow window for management and labor to continue to work together to make the changes necessary to get this company back to profitability," said Chairman David Bronner, who added that the changes were discussed with the board and labor leadership.

Under the agreement, US Airways prepaid $250 million, dropping the outstanding loan balance to $726 million. The prepayment was made to the lenders on a prorated basis to both the ATSB guaranteed (90%) and non-guaranteed (10%) portions of the loan. That cut the government's loan exposure by $225 million, and Bank of America and Retirement Systems of Alabama received $6.25 million and $18.75 million, respectively.

In exchange, the financial covenants in the loan were modified through 2005, and existing ratios have been adjusted and reset to "accommodate the company's forecast." The company and the ATSB also agreed to modify other terms and provisions, including lifting restrictions on the company's ability to pursue asset sales.

The amendment lets the airline keep up to 25% of the net cash proceeds from any asset sale up to $125 million "to the extent that, among other things, definitive documentation for such asset sales is completed by Feb. 28, 2005," according to the airline's annual report filed Friday. The airline also can now accept "a third-party secured note as permitted consideration for certain asset sales (including the US Airways Shuttle and wholly owned regional airline assets) as long as certain conditions are met."

Full article at www.aviationnow.com

----------------------------------

Interesting. Could this be in preparation for the sale of 737s to FedEx?

 

[G4G5]

If you go to the USAviation.com web site their an on going thread ,in the USAir section about this. Someone started the rumor a few days ago, they stated that 50 737 would be transferd from USAir to FedEx ASAP. You can read it for your self.

According to the rumor FedEx has the cash and is willing to take the USAir aircraft because of the newly negotiate favorable lease rates that USAir was able to get while in Ch11. Apparently they are better then what FedEx could have gotten.

The problem comes with the USAir pilot contract. Their is a certian minium number for aircraft that USAir must maintain, don't quote me but 279 comes to mind. The sale will drop the fleet count below the new limit. Something has to be done. Either replacement aircraft have to br ordered(possible 60-A320 purchase) or Seigle has to go to the union for further concessions.

The other issue is the 15% clause that the pilots have in their contract. If they do not plan to replace the aircraft and sale of the aircraft constitute greater then 15% of the assets, then according to the contract some pilots must transfer with the assets. Again something has to be done.

 

[AA717driver]

G4G5--With the E170's coming I think Siegel could negotiate another Jets for Jobs program that would get past the MEC.

Maybe Bronner will just threaten to shut the place down...again. TC

P.S.--I just heard from a classmate who's working on getting a 900EX job in the great white Northeast. The rats aren't just jumping ship, we're jumping the whole industry!

 

[G4G5]

That appears to be the general concesus.

Like Bugs Bunny once said, "You cross this line, I kill you. Ok This line, Ok this line.........."

The union has given in everytime the company asks.

I hope your buddy is not out of FRG. I hear the moral is better at AA then on that account.

Good luck in training. Have a pint a Kevin Berry's for me. It's on River Street, down by the Hyatt.