US considers raising foreign ownership limits

[FlyBoeingJets]

Further, I should mention, that not to long ago, UPS and FedEx were foaming at the mouth, upset about the DHL-Deutsche Post debacle, yet now UPS/IPA are willing to consider open skies and foreign ownership . Perhaps, just perhaps, the UPS IPA pilots should start thinking, that with the new contract, which they certainly deserve, are going to very highly compensated, more so than probably all foreign freight carriers. Sure, they have a contract that forbids outsourcing, yet the Menlo story continues to unfold. FedEx really is in the same boat.

So I guess, all of us, freight and passenger, are in this one together!

Dizel,

Been giving this one some thought. If cabotage were allowed, would it be cargo or pax? I think it will be cargo first. (In the U.S., its already a reality in Alaska) It is less politically risky. No one cares if there is a "danger" to their package by it being carried by Chinese pilots. Isn't UPS chartering at least a flight a week on a Chinese freighter to Kentucky? The menlo thing is also another nose under the tent.

There is also no worry about the U.S. cargo transportation system. We have enough carriers to do that without FedEx and UPS. The U.S. military contracts with Evergreen, Atlas, Polar, Gemini, World, etc. FedEx is only a small fraction of the lift. (<5%). I'm not counting the mail contract. UPS doesn't even play in military contracts, last I checked, because they are allergic to hazardous cargo.

The mail contract will help keep revenue up at FedEx or at UPS if it changes hands. As long as the revenue keeps coming there will be an uneasy truce between management and pilots at these two, IMHO. If one angers their pilots the other will clean up. And the showdown with DHL/Astar appears to be almost 5 years in the future, if it comes at all. Basically not even a consideration due to the distance. FedEx and UPS want open skies because hey would expand more in Europe than DHL would expand here, so the thinking goes. I wonder if they are selling us beachfront property with that claim. Open skies would give FedEx and UPS at least a chance to compete with DHL in Europe as DHL is starting to compete with us in the CONUS.

 

[Rez O. Lewshun]

Seems like the word needs to get out big time. Start by talking to everybody in the "industry" that you can. Some may not even know it is up for debate again. Get them to do the same. Everybody calls their reps in DC to let them know they need to vote no. I've even asked family members to call/write reps.

As far as ALPA goes, it seems like they are pretty quiet on the issue this time around. Maybe I'm just not seeing it, but I would think they would be all over this.

ALPA has thier political action committee. It is not funded by ALPA dues. This is where the research and lobbying is done to push the issues of Air Line Pilots.

ALPA is well aware of the situation. However, are the pilots? It is hard to heard when most don't know or don't care. The AMR pilots have a political action committee too....

Percentage of participation and volume are two things.....

As an Air Line Pilot can you sacrifice a beer a month? Five bucks? Many Air Line Pilots give hundreds of dollars a year to political action committees. They understand that you take care of the people who take care of you....

There are plenty of myths and a total lack of understanding on giving money to political action committees.

Many think by supporting ALPA-PAC they are supporting non aviation issues..wrong.

The more support we give to help the DC players who are helping us the more effective they will be.

At a minimum, don't be ignorant on the issues. Get informed.


Here is an excellent article on the current martime industry and its anarchy state. It is written by the son of the author of Stick and Rudder. Read this article for a glimpse into the possiblilty of what is in store for us...

http://www.wesjones.com/anarchy.htm

 

[Clyde]

Clyde,

"I challenge you to name one politician from any political party who would be more influenced by yours and my needs over money."

We totally agree, so please, let's not turn this into a political discussion, although it certainly is politics at work.

Dizel8,

Agreed, let's steer it back away from politics. I was afraid it was on track for going deep in that direction too.

Also, I agree with you that pax and cargo pilots are all in this together too.

 

[Clyde]

Dizel,

Been giving this one some thought. If cabotage were allowed, would it be cargo or pax? I think it will be cargo first. (In the U.S., its already a reality in Alaska) It is less politically risky. No one cares if there is a "danger" to their package by it being carried by Chinese pilots. Isn't UPS chartering at least a flight a week on a Chinese freighter to Kentucky? The menlo thing is also another nose under the tent.

There is also no worry about the U.S. cargo transportation system. We have enough carriers to do that without FedEx and UPS. The U.S. military contracts with Evergreen, Atlas, Polar, Gemini, World, etc. FedEx is only a small fraction of the lift. (<5%). I'm not counting the mail contract. UPS doesn't even play in military contracts, last I checked, because they are allergic to hazardous cargo.

UPS is in the CRAF program, and is able to do militay charters when needed.

The cabotage with regards to cargo could be good or bad depending on how you look at it. A foreign airline who regularly flies cargo between Europe and the U.S. may be allowed to further continue to more airports from it's original destination. They wouldn't necessarily be taking over "hub-and spoke" routes, but nonetheless, they would be flying something that a U.S. carrier could potentially have flown.

On the flip side of the coin, there could be opportunities for U.S. airlines to fly more routes overseas. Currently, some of our flying isn't done by us because of European restrictions and regulations. With the advent of Open Skies, that could open up a tremendous amount of flying for U.S. carriers who currently cannot fly into certain markets because of European laws and regulations.

Personally, I do not see a major threat to either the pax or cargo side. People are still going to fly U.S. airlines because of their good reputation and safety record. I don't think that we would see foreign airlines competing with U.S. airlines on domestic travel routes. At best, someone like Air France may be allowed to continue a flight from JFK to LAX, but I don't think we will see them offering high frequency service between U.S. airports.

 

[Regul8r]

Not a Good Idea

Is it safe to assume that US Pilots make more than their foreign counterparts at the majors? What's to keep foreign investors from asking US Operators to reduce their pilot pay scales before they inject fresh capital? It's all about the money here folks and in order to keep costs down (Near the world wide average) they will need to bring pay scales down in accordance as well. Correct me if I am wrong here, but isn't this what is happening in alot of US Industries i.e. auto? There's no foreign investment from abroad in the US auto industry (Ford, Delphi, GM) but the main driving force behind these pay cuts are the investors and financial backers and it's all in the name of competition. I'd say before any forign investors consider pouring money into a US Airline, they'll ask that labor either be outsourced or costs slashed.

 

[FlyUnited]

All one needs to do is log onto FlyerTalk to see that people love the foreign carriers. They would indeed fly them if they had the opportunity. This is very bad for Americans.

 

[Regul8r]

This is very bad for Americans.

Thanks United, I agree.

 

[Rez O. Lewshun]

Dizel8,

Agreed, let's steer it back away from politics. I was afraid it was on track for going deep in that direction too. .

Huh? It is all about politics!!! Not about whose party is better, but the political issue!!!!

Everything that is determined that concerns out careers/jobs is decided politically on CapHill!!!


http://www.opensecrets.org/pacs/lookup2.asp?strId=C00035451

 

[fokkerjet]

typhoon

...with memories of 9/11, Korea and WW2 still fresh in the minds of many Americans, I think you can safely rule out any ownership by our Arab, Chinese or Japanese brethren!

It really worked with the auto industry, you can see that nobody buys any Chinese or Japanese vehicles because memories of the Korean War and WWII..... What about the aircraft business; good people fought and died in Germany but we seem to want Airbus to build our next Air Force tanker............

 

[Regul8r]

I agree with Fokker, it's all about the Benjamin's here. US Management wouldn't bat an eyelash at sending the US workforce up Sh!t-creek if it made the bottom line look a little bit better.