Originally Posted by HankHill

FedEx to base pilots overseas
Commercial Appeal
FedEx Corp. plans to establish pilot bases in Paris and Hong Kong, saving it the cost of getting U.S.-based pilots to work and giving it more flexibility as it takes on DHL, the No. 1 courier company in Europe.
The Memphis-based company and the pilots' union are discussing an amendment to the pilots' contract, including cost-of-living stipends and details about the planes FedEx intends to fly in each market.
We've had very cordial dialogue with the company," said David Webb, chairman of the FedEx master executive council of the Air Line Pilots Association.
"We've had ongoing trips to Asia to look at housing, schools and hospitals. These two domiciles are going to be important to the future growth of Federal Express," he said.
The conversations, Webb said, have been going on for years.
He expects FedEx would like to have pilots bid on the new routes this year.
"We're working diligently to complete the negotiations. Everyone seems to be willing to listen to each other and make the best effort to have it work out," said Maury Lane, company spokesman. "But we're in no rush because we can keep doing business the way we are."
For pilots, particularly young pilots, an overseas base can offer chances to move up the pay scale with promotions not available in larger bases. For instance, a first officer in Memphis who lacks seniority to fly in the captain's seat could be senior in a smaller domicile.
Promotion from first officer to captain normally carries a 35 percent raise. A 15-year first officer moving to the most senior captain's seat would make an added $60,000 to $70,000 a year.
Traditionally, FedEx has agreed to pay moving costs to and from a domicile for pilots who stay three years.
Setting up foreign bases could save it millions in commuting costs. For instance, for June, FedEx has 31 flights to Europe to get 64 pilots in place. FedEx can expect to spend $330,000 on their tickets -- an annual rate of $3.9 million.
Figures are based on round-trip, first-class tickets that average $5,200, according to the company's flight operations Web site.
When domiciles are established, pilots who choose to commute from the United States, or from anywhere else, will have to pay their own fares.
FedEx has bases in Memphis, Los Angeles, Subic Bay and Anchorage, Alaska. Memphis is the largest.
"You want to have your pilots based where the flight originates because that's where you have the longest layovers," said Satish Jindel at S J Consulting near Pittsburgh. "It gives the pilots a better quality of life and better scheduling."
The change comes as FedEx adds capacity to its fleet and prepares to open its Asian hub in Guangzhou, China, in December 2008. FedEx's Asian business is growing by double digits; growth in Europe is slightly less.
Last fall, FedEx said it intended to spend $2.6 billion to buy 90 Boeing 757-200s, which it will deploy largely in Europe.
What makes the 757 attractive is that it can land anywhere FedEx now lands 727s.
The 757 can carry 20 percent more cargo and costs 25 percent less to operate than a 727, including the crew. It requires a two-person crew; the 727 requires three crew members.
That means the company can carry packages at a lower cost per package, allowing it to increase profit margins in the overnight delivery sector, still its core business.

Originally Posted by Lippy

Hey Falcon,

Take it easy man. This isn't worth getting spun up over... at all.

Originally Posted by prezbear

Actually Lippy, this IS worth getting spun up over. When it's all said and done there will probably be 320+ crewmembers in Hong Kong and Paris. We need to make sure that any LOA that is presented to the membership for ratification compensates our pilots for the high cost of living incurred by living and working in the 4th and 12th most expensive cities in the world.

Since our contract does not allow the company to force any pilot into a foreign domicile, it isn't hard to see that the company will probably offer these domiciles to new hires as a condition of their employment. How would you like to live in either place on $58 an hour and not receive you relocation allowance until you finish your probationary year.

Man, I could go on and on...Lippy, please educate yourself and protect your fellow pilots.

Prez

Originally Posted by RedeyeAV8r

Let's Cut to the chase....................

I don't disagree that HKG and Paris are expensive. I don't know for sure what the Company is offering, although I am sure it will be below what many feel is warranted.

I keep hearing this common theme. We need to look at Reality................

The Current Contract allows ( permits, grants, whatever) the Company the authority to open new FDA's (HKG and CDG) and pay nothing! Do you not realize that? Look at Section 6 and read it.(6.2.A.4 )and (6 2.E.) Tell me where the company has to offer anything, other than what is in print there?

What leverage does the Union and membership have? Sure we can vote down any LOA forthcoming, but then what??

What will you and others say when the FDA domcile bid comes out and folks bid it regardless? Or it is filled/ staffed by some other way with "other" folks?

What are the Alternatives?
Where is the leverage?

Thumping our chests and making demands are fine, but Reality is important too!
I suppose you are counting on 285 an hour for the 777 because no one will bid that either until we negotiate. Keep dreaming!

Originally Posted by RedeyeAV8r

Let's Cut to the chase....................

I don't disagree that HKG and Paris are expensive. I don't know for sure what the Company is offering, although I am sure it will be below what many feel is warranted.

I keep hearing this common theme. We need to look at Reality................

The Current Contract allows ( permits, grants, whatever) the Company the authority to open new FDA's (HKG and CDG) and pay nothing! Do you not realize that? Look at Section 6 and read it.(6.2.A.4 )and (6 2.E.) Tell me where the company has to offer anything, other than what is in print there?

What leverage does the Union and membership have? Sure we can vote down any LOA forthcoming, but then what??

What will you and others say when the FDA domcile bid comes out and folks bid it regardless? Or it is filled/ staffed by some other way with "other" folks?

What are the Alternatives?
Where is the leverage?

Thumping our chests and making demands are fine, but Reality is important too!
I suppose you are counting on 285 an hour for the 777 because no one will bid that either until we negotiate. Keep dreaming!

Originally Posted by FDX28

According to the last message line, the MEC is negotiating with the company about a LOA and pay for an FDA. So, what proposition has the union brought to the table? Is DW so concerned about dues that he won't bring actual COLA to the table? Since I'm not in the top 500 and my voice means nothing, why not a senior MD11 capt, (hint, hint) suggest to the powers that be that COLA would be far better for everyone? It might show some goodwill when our leadership NEEDS to show it to the membership? Again, if it saves the company money, and gets more in the pocket of the pilot, why would anyone not bring that to the table? I hope the membership doesn't get back-doored again, especially since the company is at the table and talking.