In the past couple of years, it seems like it has been nothing but good news for airline and cargo pilots, in terms of the demand for them, and their negotiating power. That’s very much changing at cargo airlines, it seems…
Continue reading: FedEx Tells Pilots To Quit, Work For Regional Airline
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These pilots work under a union contract which probably states "last hired, first fired". Those that will leave are the youngest or lowest on the roster. Those that will ride it out are older or most senior. Won't be too much of an economic savings to FedEx.
Might have been better to offer an Early Out program. From my past experience, these seem to be very effective at culling the herd.
Ben do you honestly think there will be too many pilots at commercial airlines? Isn't there a looming shortage as many pilots are aging out?
FedEx should be utilizing combi aircraft. Half cargo, half pax. Much higher profit margin than just cargo
“ I can’t help but feel like passenger airlines will soon be having the same issue as cargo airlines, where they have too many pilots; I think cargo demand is just shrinking a bit ahead of passenger demand”
What reason do you have for “feeling” this?
The cargo and passenger airline businesses are *very* different.
UPS is having similar issues ATM. A well known pilot for a pax airline on YouTube just did a video about this topic last week.
They (the FedEx union) should have taken the 30% and ran with it.
Also, this buyout/transfer is so very obviously meant for the newer pilots.
Automation doesn't need seniority.
The end is inevitable. Your kind is headed for extinction.
Let's see...no windows on the fleet, a cargo flight schedule that could only be sold at ULCC levels, no related airport infrastructure, no GDS connectivity, no passengers sales/marketing/commercial/revenue management staff (yes, they have those staff for cargo, but not a passenger operation), cost of re-equip and install windows, install seats, install larger galleys, and the list goes on...
And YOU talk about intelligence?
They are not so different. The economy looks to be heading downwards with some airlines as well as merchants seeing bad times coming.
I will not comment on Darryl's thought, others are doing that.
I do remember UPS trying something similar. Their plan was to convert some 737/320.757 type of aircraft so seats could be swapped in for weekend flights while express shipments could travel on ground Saturday/Sunday. The plan was to sell directly to cruise lines.
Didn't work out, cancelled program.
Dink, do you really think that is unintelligent?
ULCCs are the fastest-growing subset of the aviation industry (Source: 'ICAO Study of Global Aviation Statistics, 2018'
Airport Infratsructute will be purchased by way of slot and gate payments - VERY simple.
GDS connecvity - this is a scam concocted by the major carriers. FedEx has the capability to sell tickets by way of their website, further sources are irrelevant and unneeded.
Sales/marketing/commefcial/revenue management - a ULCC as you mentioned earlier would have very minimal resources dedicated to this, so unsure what you're referring to, dink.
Everything else you mention is (seats, windows, galleys, etc) all is part of a combi conversion, so not sure why you are so up in arms about that.
In conclusion, FedEx combi conversions are very SIMPLE and you are a stupid, narrow-minded fool.
Yes, but they're stuck with the entire cost of an early out program. In this case someone else is paying a good chunk of the cost.
Overnight shipping is going the way of Kodak film. FedEx and UPS are no longer a indicator of the health of the economy. Amazon has effectively ruined overnight shipping. Seen a new giant warehouse near your home lately? You can have same day delivery of things that were never on an airplane.
He just never misses an opportunity to bash pilots. Someone with several thousand lives in their hands every time they go to work and he gets upset that they are paid according to their value.
Massive aircraft orders, looming retirement bubbles, robust jobs and gdp data, packed airports. All the more reason for the sky to fall, I guess.
Make no mistake - FedEx isn't offering anything. This is a PSA offer - the same one they made to UPS when they were downsizing.
The difference is that UPS offered high tenure pilots a buyout to retire early. In that case, it might make sense for a pilot at the end of their career to fly for a PSA and collect the nice signing bonus.
FedEx published this note three days before contract negotiations resumed after their failed attempt at a pilot contract. FedEx has offered zero incentive for pilots to move on. This is nothing but a negotiation tactic.
Sounds like the phasing out of Fed Ex Express is progressing fast and Ground is taking over.
I doubt air travel will ever lower unless we have a multi-year recession and and even then, there are plenty of people with enough money to still fly. Passenger levels are back up to pre-Covid levels and retirees have more money than ever.