pilot union Archives - FLYING Magazine https://cms.flyingmag.com/tag/pilot-union/ The world's most widely read aviation magazine Tue, 20 Aug 2024 20:43:06 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 High-Ranking NetJets Pilots Union Leaders Handed ‘Unprecedented’ Termination https://www.flyingmag.com/business/high-ranking-netjets-pilots-union-leaders-handed-unprecedented-termination/ Tue, 20 Aug 2024 20:43:04 +0000 https://www.flyingmag.com/?p=213870&preview=1 The labor group says its vice president and strategy chairman were allegedly fired in early August.

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Two high-ranking elected officials within the NetJets Association of Shared Aircraft Pilots (NJASAP)—including the union’s vice president—were recently terminated from the company in what the labor group is calling an “unprecedented” move. 

The NJASAP represents NetJets’ 3,430 pilots and recently signed a new contract with the world’s largest private jet operator. 

In a news release published on Monday, the NJASAP alleged the two pilots were terminated because of their role in negotiating the five-year agreement, which was overwhelmingly ratified in April. The union also said the termination decision was “unlawful, unjust and in retaliation for the $1.6B in improvements the pilots negotiated during midterm bargaining that concluded earlier this year.”

NetJets said it had no comment on the matter. 

The terminated pilots included the NJASAP vice president and strategy group chairman. According to the union, they were both captains with 23 and 18 years at the company, respectively. The two pilots had “unblemished professional records,” NJASAP president Captain Pedro Leroux said in the release. 

“Choosing to terminate two high-ranking union leaders is not simply another hurdle to resetting the landscape, but a move reflective of a strategy that is not sustainable in the long term,” Leroux said.

This move is the latest in an ongoing back-and-forth between NetJets and its pilots union. In June, the company sued the NJASAP for defamation over safety and pilot training claims. 

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ALPA to Return $50 Million in Member Dues Amid ‘Record Revenue Gains’ https://www.flyingmag.com/alpa-to-return-50-million-in-member-dues-amid-record-revenue-gains/ Tue, 23 Apr 2024 22:11:51 +0000 https://www.flyingmag.com/?p=201306 The world's largest pilots union is returning member dues in a 'first-of-its-kind' move.

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The Air Line Pilots Association (ALPA)—which represents over 77,000 pilots in North America—plans to pay back $50 million in member dues this year. In a Friday letter to members viewed by AirlineGeeks, ALPA president Captain Jason Ambrosi called the move a “first-of-its-kind, across-the-board dues return.”

According to the letter, the return comes “in response to the record 2023 revenue gains.” The money will come directly from ALPA’s national funds, Ambrosi added. Airline-specific committees will also be able to provide their own refunds.

ALPA says it expects to make the payments this summer, which will be available to both U.S. and Canadian members based on dues paid last year. For pilots, the refund reflects up to 16 percent of total dues paid in 2023, the union stated.

“I thank our national officer team for sharing the belief and commend the Executive Council for upholding the fundamental responsibility entrusted to us, which is to be good fiduciaries of your money—a responsibility we take seriously,” Ambrosi said in the letter to pilots. “As always, we will ensure that your dues continue to be the best investment in your career that you ever make.”

Members of the union pay up to 1.85 percent of earnings in dues. While ALPA has been able to negotiate record-setting collective bargaining agreements at several airlines, it acknowledges that 16 carriers and their pilot groups are still in the bargaining process.

“The year 2023 was a monumental one in our union’s history…” Ambrosi said. “While we acknowledge these significant gains that resulted in a record amount of revenue for the association, ALPA continues to dedicate all needed resources to the 16 carriers that remain in bargaining.”

Editor’s Note: This story was updated on April 23 at 9:52 a.m. EDT to properly reflect ALPA’s 1.85 percent dues rate. 


Editor’s Note: This article first appeared on AirlineGeeks.com.

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UPS to Hire 300 Pilots to Support Postal Service Contract https://www.flyingmag.com/ups-to-hire-300-pilots-to-support-postal-service-contract/ https://www.flyingmag.com/ups-to-hire-300-pilots-to-support-postal-service-contract/#comments Mon, 08 Apr 2024 18:28:22 +0000 https://www.flyingmag.com/?p=199979 UPS has about 292 freighters in its mainline fleet, which is 43 percent smaller than FedEx’s.

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UPS is looking to hire more than 300 pilots to support an anticipated increase in air cargo demand driven by a new multi-year contract from the U.S. Postal Service, according to the union representing the company’s air crews.

“The Independent Pilots Association Executive Board was informed that UPS HR is resuming their pilot hiring process to account for the additional volume surge that will occur as the year progresses,” the union said in a statement shared with FreightWaves. “The initial projected estimate for hiring is expected to be 300+ additional crew members, which is subject to adjustment once the network plan for the additional USPS volume is finalized.”

The Independent Pilots Association is the bargaining representative for about 3,200 pilots at UPS (NYSE: UPS). 

UPS beat out FedEx Express last week for the five-and-a-half-year postal service contract, which FedEx (NYSE: FDX) had held for more than 20 years. The call for pilots runs counter to initial assessments from analysts that UPS would need to add few, if any, aircraft to support the postal service because of its ability to lean on its high-performing linehaul truck network to move a portion of the volume. FedEx has acknowledged recent difficulties turning a decent profit on its postal business and UPS was expected to address that by running a leaner air network.

UPS also gave buyout packages last year to 193 of the most senior pilots to reduce costs amid a downturn in the parcel market. 

Spokeswoman Michelle Polk confirmed UPS is recruiting 170 pilots, as currently posted on its external job boards.

The hiring number provided by the union covers the number of pilots UPS is likely to hire over the next year or so. A source familiar with pilot scheduling and staffing said UPS has to phase in new pilots because there isn’t enough capacity to train a full cohort at once.

Postal flights are primarily operated during the daytime, opposite the express overnight network. 

The postal service has prioritized moving mail by ground as much as possible over the past three years, resulting in a $500 million reduction in revenues for FedEx during that time. FedEx realized $1.6 million in revenue during fiscal year 2023 from its air contract with the mail agency, according to research by David Hendel, a transportation attorney at Culhane Meadows.

UPS has about 292 freighters in its mainline fleet, which is 43 percent smaller than FedEx’s. FedEx also has about 2,400 more pilots than UPS.

There is no indication that UPS will slow the phase out of its aging MD-11 fleet. The company last year retired six of the aircraft and plans to remove more than that amount this year. The MD-11s are being replaced by 767 freighters. UPS has 21 more 767s on order from Boeing. 


Editor’s Note: This article first appeared on FreightWaves.

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FedEx Pilots Pick Third Union Chairman Since Last Summer https://www.flyingmag.com/fedex-pilots-pick-third-union-chairman-since-last-summer/ https://www.flyingmag.com/fedex-pilots-pick-third-union-chairman-since-last-summer/#comments Mon, 01 Apr 2024 14:38:34 +0000 https://www.flyingmag.com/?p=199520 New leadership ready for more aggressive tactics

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The board of the FedEx pilots’ union has elected its third chairman in eight months as the group tries to overcome internal divisions that have hampered efforts to achieve an updated labor contract.

The FedEx Master Executive Council voted for Captain Jose Nieves, a Boeing 757 pilot who has been at FedEx for 28 years, to lead the union’s 5,800 members, the Air Line Pilots Association announced late Tuesday.

Nieves replaces Captain Billy Wilson, who was elected October 30, 2023 for an interim term through March 2025 but was voted out this month in the face of growing opposition. A large subset of disenchanted pilots willing to take a more aggressive stance versus FedEx management pushed the vote.

Wilson took the helm when predecessor Christopher Norman resigned in the wake of last summer’s union rejection of a tentative agreement that leadership endorsed as delivering industry-leading improvements on pay, retirement and work-life balance.

Nieves’ term will run through March 25, 2025.

“FedEx pilots are facing challenges unlike any in recent years, and I believe this is a critical time in our union’s history,” said Captain Nieves, in a news release. “At the top of that list of challenges is standing up to a company that has explicitly demonstrated a failure to value its pilots and employees. . .“Our pilots grow more unhappy with FedEx management by the day. It is past time for management to come to the table with a contract that recognizes our value. This is my primary focus, and the work begins today.”

Both sides have been negotiating a new labor agreement for three years and have been under the supervision of the federal National Mediation Board since October 2022. On March 8, the Air Line Pilots Association asked the NMB to declare an impasse and release the parties from mediation, the first step necessary to launch a strike action.

The new MEC leadership, responding to supporters who felt the previous board was too willing to make concessions, has made clear its willingness to take the gloves off and use any means available under the Railway Labor Act to press FedEx for better benefits. The union says it believes FedEx is not willing to change its bottom line from the deal agreed to last summer.

FedEx Corp. last week reported adjusted earnings of $3.86 per diluted share, well above analysts’ estimates of $3.45 per share, with operating income up 19 percent in the third quarter. Operating profit for the Express segment, which is responsible for the air network, nearly doubled after the company idled more aircraft, reduced flight activity and pared other costs. The lower flying levels also mean less pay for pilots.

FedEx has not invoked language in the existing contract that allows the airline to go below minimum guarantee pay for a four-week period when available flying time falls below certain thresholds, according to a message from a pilot who asked to remain anonymous to protect job security. FreightWaves reported early this year that such a move was possible because of the sluggish demand. But domestic flight activity subsequently picked up, according to research by Morgan Stanley.

FedEx stock increased 6 percent on Tuesday, reaching a three-year high of $288.99 per share.

The pilots union says FedEx’s improved performance demonstrates the company can afford a better compensation package. It took umbrage with FedEx announcing another $5 billion share buyback program. A group of pilots conducted an information picket outside the New York Stock Exchange when FedEx reported its earnings on Thursday to draw attention to their agenda.

The FedEx pilots, who once were near the top of the pay heap, want a contract similar to ones won by counterparts at American Airlines, Delta Air Lines, Southwest Airlines and United Airlines. Even pilots at Hawaiian Airlines and Alaska Airlines achieved sizable raises last year.

Cockpit crews appear to have lost leverage since airfreight and parcel demand began falling in mid-2022. FedEx also faces the strong possibility of losing some, or all, of its U.S. Postal business later this year. But the pendulum is slowly swinging back to growth, with global air cargo volumes up more than 10 percent for the first 2.5 months compared to the same period last year and the small package market projected by some to grow about 4 percent per annum over the next three years.


Editor’s Note: This article first appeared on FreightWaves.

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FedEx Pilots Take Harder Line as Contract Dispute Drags https://www.flyingmag.com/fedex-pilots-take-harder-line-as-contract-dispute-drags-on/ https://www.flyingmag.com/fedex-pilots-take-harder-line-as-contract-dispute-drags-on/#comments Mon, 18 Mar 2024 17:55:21 +0000 https://www.flyingmag.com/?p=198272 Factions coalesce around new union reps, more aggressive tactics

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The board that sets the strategic direction for the pilots’ union at FedEx Express is projecting a united front after last week’s acrimonious debate over ending federal mediation of contract talks. The effort suggests there is more agreement than meets the eye and that aggressive steps are necessary to counter the company’s alleged intransigence. 

Despite strong membership divisions, there appears to be greater unity within the Air Line Pilots Association’s (ALPA) Master Executive Council as a new guard begins to exert control. And internal communiques obtained by FreightWaves also indicate that council members, including long-serving incumbents, share the view that FedEx (NYSE: FDX) is stringing out the labor dispute.

“Whether you are of the opinion that we should have waited longer or that we’ve waited long enough, we MUST embrace the imperative that we all work together. We are ONE TEAM on this side of the table, ready to negotiate a deal that recognizes our value to OUR corporation, and a deal that the corporation can easily afford,” the MEC said in a note to members that was signed by all 14 council representatives. “On the other side of the table is the other team, intent on dividing and conquering us. You need to decide if you’re on OUR team or THEIR team. There are no other choices, no neutral sideline or fence to stand or sit on. We stand together, or we all fail.”

ALPA last week asked the National Mediation Board to end bridge-making efforts and allow the parties to resolve differences through arbitration—a move designed to open the door to a possible strike since neither side is likely to agree to a binding decision from an arbitrator. The letter was sent after an 8-6 vote by the MEC that some complained was engineered behind closed doors, rushed through without adequate consideration and taken without waiting for FedEx’s response to the union’s latest demands. 

The bad blood got so bad that some council representatives said they were essentially ambushed by plotters seeking to hijack the negotiations, FreightWaves reported. In a separate correspondence to crew members, a top FedEx official said the union’s shifting stances because of the internal divisions has made it difficult to come to an agreement because it doesn’t know what demands to take seriously. 

ALPA on Thursday blamed FedEx for trying to undermine union solidarity by sowing “inflammatory information and unsubstantiated allegations” in the media, notwithstanding the fact that the internal tensions were clearly spelled out in the organization’s own documents.

“Contrary to attempts to divide our governing body and pilot group, we want to reaffirm that FedEx pilot leadership stands united in its pursuit of a contract that reflects the hard work and dedication of our members. The decision to request a release from the National Mediation Board was not taken lightly, but was made in the best interest of ensuring that a resolution to our contract negotiations was completed in a timely and constructive manner,” the union said in response to the article.

It is unclear when the pilots union made its latest proposal to FedEx, but Wednesday’s membership update from the MEC and an official who was subsequently contacted implied that it happened on Feb. 27, the first day of three mediated sessions in a row. The MEC said it was angered that FedEx failed to give an answer on Feb. 29 and instead said it needed two more weeks before it could address retirement issues.

“A hallmark of the company’s behavior in negotiations has been stall, drag feet and delay. With only two days of meetings scheduled in the month of March, and only one week set aside to meet in April, we simply could not play along with the delay game any longer,” the board said. 

The parties have been negotiating for nearly three years on an updated pilot contract and have been in federal mediation since October 2022. 

The leaders said the delay solidified the view that FedEx had no intention of making improvements to the tentative agreement pilots rejected last summer. A majority of FedEx pilots were displeased with the agreement’s level of job protections, back pay, pension options and quality-of-life considerations and the fact that pay increases were below those recently achieved by passenger-airline counterparts. 

FreightWaves previously reported that FedEx did not plan to increase the value of the rejected deal in the new round of mediated talks. The MEC letter characterized management’s insignificant changes so far as “insulting.” 

Scope Clause

Of particular concern, according to the correspondence, is the company is not addressing pilot concerns that more flying will be outsourced, which would reduce their earnings. ALPA wants to improve clauses in the existing contract that define what type of flying can be done by pilots that aren’t employed by the airline. 

Last year’s tentative agreement would have allowed FedEx Express to place more work during surge periods with third-party airlines without paying a higher penalty. But many pilots were concerned that language prohibiting outsourcing if FedEx reduces flight hours or furlough pilots wasn’t strong enough. Under the existing scope arrangement, FedEx pays a financial penalty to the union that gets distributed to pilots if the company goes above the agreed cap on shipment volume that can be given to charter airlines. Opponents feared FedEx might simply not replace older pilots as they retire and then claim a need to hire partner carriers to meet demand.

The latest union proposal trades smaller monetary penalties for using contractors in exchange for more job protection. The memo accused management of rejecting most of the offer and deferring discussions about reduced crew operations into the future. 

Much of the tension centers on the extent to which FedEx intends to reduce the pilot workforce as it reengineers the air network to reduce structural expenses in response to shifting e-commerce patterns, which have resulted in weaker overnight express volumes. Company executives have outlined a “Tricolor” strategy that would shift a greater percentage of the fleet towards transporting deferred freight, which would be concentrated during the daytime. They have also publicly acknowledged the need to reduce the ranks by several hundred from the current level of 5,800 pilots. 

“By definition, the Orange network is FedEx planes and FedEx pilots, just retimed to go into day sorts versus tighter night sort windows. We discussed that on our Q2 call, and have been unequivocally clear about this in all company communications around Tricolor,” said FedEx spokesperson Caitlin Adams Maier.

[Photo: Jim Allen/FreightWaves]

The MEC said it wants FedEx to put in writing that FedEx pilots will be used to fly that freight. 

“When you add their scope [suggestion] to their pitifully low pay rate offer and their shuffling of retirement benefits and throw in their insistence on including concessions” on guaranteed flight hours for training or vacation that overlaps with normal downtime “what we’ve been offered from the company is a recipe for another failed tentative agreement,” the MEC told members.

The tenor of the messages reflects recent changes within the MEC. Most of the representatives who endorsed the failed tentative agreement have been recalled and replaced. Initially, only a few representatives were recalled after the failed tentative deal and the new representatives were in the minority. Now they appear to have gained the majority. 

The MEC is looking to fill a vacancy for chairman of the negotiating committee, according to the member update.

Late Thursday, the MEC voted chairman Billy Wilson out of office, an action he predicted last week would happen because of the power struggle and disagreement over the NMB letter’s timing.

“Our request to be released [from NMB oversight] should demonstrate to the company and investors that we will not settle for a subpar tentative agreement nor allow the process to be delayed any further,” the MEC wrote. “The trajectory plotted by the company would never yield a tentative agreement that we as a MEC could endorse, much less one that the membership could overwhelmingly ratify.”

The union has consistently criticized FedEx for citing lower profits as reason for caution on a new pilot contract, noting that the company in December announced a $1 billion accelerated share buyback program. 

During a special in-person meeting at the MEC’s Memphis, Tennessee headquarters on Wednesday, Southwest Airlines Pilots Association president Casey Murray described how a deal was reached in January that would raise pilot pay about 50 percent over five years. The FedEx deal shot down last summer included a 30 percent pay increase over 4.5 years. Murray said the agreements reached at Delta Air Lines and United Airlines set a pattern for a successful outcome with Southwest. 

The MEC plans to conduct an informational picket on Wall Street when FedEx releases quarterly results next Thursday in hopes that investors will convince management to speed up negotiations.  


Editor’s Note: This article first appeared on FreightWaves.

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UPS Pilots Won’t Fly if Teamsters Strike https://www.flyingmag.com/ups-pilots-wont-fly-if-teamsters-strike/ https://www.flyingmag.com/ups-pilots-wont-fly-if-teamsters-strike/#comments Tue, 18 Jul 2023 20:02:35 +0000 https://www.flyingmag.com/?p=176000 Big markup in union wages could hurt parcel carrier’s competitiveness, analysts warn.

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Editor’s Note: This article originally appeared on FreightWaves.com.

The union representing UPS pilots says they will not cross picket lines if Teamsters drivers and package sorters walk off the job when the current contract expires Aug. 1, resulting in the immediate shutdown of the express logistics company’s global air operations.

UPS (NYSE: UPS) has 3,300 pilots who are represented by the Independent Pilots Association (IPA), a separate union from the Teamsters.

“If the Teamsters are on strike, we will honor that strike and we will not fly,” IPA spokesman Brian Gaudet told FreightWaves. 

Even with freighters in service, a strike by 340,000 package car drivers, truck drivers and warehouse workers would effectively ground most UPS Airlines operations because there would be few, if any, personnel to load and unload aircraft, process packages and deliver them to and from airport facilities. UPS says it is training nonunion employees to handle packages in the event there is a labor disruption. Management estimates it could move about 22 percent of the 18.6 million daily parcels moving through its system.

The Teamsters union has a $300 million to $350 million fund to support workers with strike pay, but UPS pilots who don’t report to work will bear the burden on their own.

“We don’t have a strike fund. If you’re a UPS pilot and you’re being asked to not cross that picket line, that means you stay in your hotel, you don’t show up, you don’t fly and it’s on your nickel,” said Gaudet. 

UPS pilots ratified a two-year contract extension last August.

Bascome Majors, a senior transportation equity analyst at Susquehanna International Group, estimated in a research note that the Teamsters’ fund could last at least two weeks. Part-time workers would end up making about $210 less than their normal weekly pay, while full-timers would make about $1,450 less, which “could splinter enthusiasm for an extended strike and hurt Teamster solidarity.”

Barring a solidarity action by pilots, UPS likely would use a skeleton fleet to protect some international and overnight flights to its Worldport hub in Louisville, Kentucky, said Derek Lossing, founder of Cirrus Global Advisors, in an interview.

FedEx Express (NYSE: FDX) is the only air carrier that can realistically absorb UPS overnight, next-day package volumes, he explained. FedEx will try to take on as much of that business as it can because it is lucrative. Shippers that have a big relationship with UPS and only tender small volumes to FedEx are likely paying $6 to $8 more per parcel. FedEx can realistically handle 5 percent of UPS overnight volumes, Lossing added. 

UPS management and the Teamsters union are at an impasse over wages and other economic issues after previously agreeing on other terms.

Rich Labor Deal Poses Risks

Analysts say UPS is in a bind because it already is experiencing some shipment diversion to rival FedEx and could drive away more customers if it sharply raises rates to help cover the cost of an overly generous Teamster deal.

A new Teamsters contract could drive the cost per parcel about 2 percent  higher than current expectations and cut a dollar from UPS’ earnings per share next year, said Majors. Parcel consultants are forecasting that shippers can expect rate hikes of 6 percent  to 10 percent  in 2024, before a Teamsters contract is finalized. 

Majors predicts the Teamsters’ contract will boost wages by 18 percent for part-time workers and 7 percent for full-timers, with another 7 percent increase in costs for inflation and other factors.

Many businesses that felt burned by UPS during the last three years, when demand soared and the carrier didn’t bend on applying steep rate hikes, could be willing to look for alternative carriers.

“If UPS gives away too much in labor costs, it’s going to be forced to raise rates to shippers and significantly lose a share of their wallet because the 12- to-18 month outlook doesn’t justify price increases,” wrote Lossing, a former logistics manager at Amazon who helped the online retailer build out its  private cargo airline and international last-mile delivery network, on LinkedIn.

For every 10 percent increase in labor costs UPS negotiates, it will lose 4 percent market share over the next two years, according to modeling conducted by Cirrus Global Advisors. That translates to 70,000 daily ground packages shifting to the U.S. Postal Service or regional parcel carriers. If the Teamsters union wins a 20 percent increase in compensation, UPS could lose 140,000 daily packages to competitors.

Labor is UPS’ largest expense item, consuming nearly half of global revenue. According to UPS, delivery drivers on average earn $95,000 per year and part-timers earn $20 an hour, plus health and pension benefits. With FedEx and Amazon using an independent contractor model with nonunion workers for final-mile delivery, UPS has to control labor costs or risk “a slow spiral” that makes it uncompetitive, Lossing said. 

Online shoppers will experience slower deliveries if there is a UPS strike and e-commerce companies will be forced to cancel free shipping and increase shipping charges, he predicted. 

Companies that haven’t integrated other carriers besides UPS into their transportation planning systems could face significant operational and financial impact from a potential strike, logistics experts say. 

For more coverage on air cargo, go to FreightWaves.

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United’s New Deal with Pilots to Offer Pay Increases Up to 40 Percent https://www.flyingmag.com/uniteds-new-deal-with-pilots-to-offer-pay-increases-up-to-40-percent/ Mon, 17 Jul 2023 18:06:30 +0000 https://www.flyingmag.com/?p=175851 The agreement wraps up four years of negotiations and is estimated to be worth $10 billion.

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United Airlines and its pilot union have come to an agreement in principle (AIP) on a new deal that includes pay raises of up to 40 percent over the next four years.

Airline management and the Air Line Pilots Association (ALPA), the union representing United’s 16,000 pilots, reached the agreement Saturday after four years of negotiations. 

Since 2019, pilots have been seeking a new contract that’s more in line with industry standards. A tentative deal came up last year but was overwhelmingly rejected by pilots due to what they said was substandard pay given the airline’s profitability.

According to ALPA, the latest agreement— estimated to be worth $10 billion—includes “substantial improvements to compensation, as well as advancements in quality of life, vacation, and other benefits.” If approved, pilots will receive pay raises ranging from 13.8 percent to 18.7 percent depending on aircraft type, followed by four smaller annual raises.

“The tireless dedication demonstrated by United pilots over the past several years ensured our solidarity which was instrumental in achieving this historic agreement,” said Capt. Garth Thompson, chair of the United ALPA Master Executive Council. 

In a LinkedIn post, United CEO Scott Kirby wrote: “We promised our world-class pilots the industry-leading contract they deserve, and we’re pleased to have reached an agreement with ALPA on it.” 

An ongoing pilot shortage and resurgence in post-pandemic travel has given pilot unions bargaining power in securing lucrative contracts. United’s tentative proposal now puts its  pilots in line with counterpart Delta Air Lines, which also saw pilots receive considerable salary increases in their new contract. 

Meanwhile, American Airlines is set to vote next week on an offer that includes average cumulative raises of 41.5 percent over the next four years. Southwest Airlines is still in the process of negotiations, while its union, the Southwest Airlines Pilots Association, said its members approved a strike mandate.

As more travelers are packing airports, carriers are seeing record profits. On Thursday, Delta reported a record quarterly profit of more than $1.8 billion. United is expected to share its results Wednesday and, according to a FactSet survey, analysts anticipate the airline to post a profit of more than $1.3 billion.

To keep pace with travel demand, airlines are seeking qualified professionals. Together, United, Delta, American, and Southwest are expected to hire roughly 8,000 pilots this year. And it’s not just mainline pilots reaping the benefits of an industry workforce shortage. Regional pilots are being lured with hefty compensation offers and retention bonuses as carriers struggle to compete for talent.

In the coming weeks, negotiators will continue to finalize language in the United agreement. Once completed, pilots will review and vote on ratification of the new contract.

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FedEx to Close Pilot Bases In Alaska, California, Germany https://www.flyingmag.com/fedex-to-close-pilot-bases-in-alaska-california-germany/ Tue, 25 Apr 2023 12:55:12 +0000 https://www.flyingmag.com/?p=170642 Downsizing flight operations is a big piece of parcel carrier’s strategy to improve efficiency and profitability.

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Editor’s Note: This article originally appeared on FreightWaves.com.

FedEx will shut down pilot bases in Alaska, California and Germany as part of the company’s aggressive campaign to eliminate billions in structural costs by fiscal year 2027 by streamlining operations and networks, FreightWaves has learned.

Pilots domiciled in Anchorage, Los Angeles and Cologne Bonn Airport in Germany who fly two older aircraft types will gradually transition to other bases in the FedEx (NYSE: FDX) network, the company said in an email statement. The Cologne hub hosts crews for medium-size Boeing 757 freighters, while Ted Stevens Anchorage International Airport and Los Angeles International Airport are home ports for McDonnell Douglas MD-11 pilots.

“As the global business environment continues to evolve, FedEx has made the decision to relocate its pilots and close its 757 crew base in Cologne, Germany (GHN) and its MD-11 crew bases in Anchorage, Alaska (ANG) and Los Angeles, California (LAX). The decision only affects the base of the crews operating these flights and will not impact our current service,” FedEx said. “Our operations in these markets continue to play an important role in the global FedEx network and the flexibility of this network enables us to make adjustments that best meet the needs of our customers throughout the world. As with any base closure, the process is a gradual one and this relocation will occur without any disruption to our operations.

FedEx Express positions pilots across the U.S., Europe and Asia to increase efficiency. Living in the same city where flights originate allows pilots to have the longest layovers and makes scheduling easier in contrast to living in remote locations and having to commute to the base for the next duty cycle. 

FedEx also has pilot bases at its global hub in Memphis, Tennessee, as well as regional hubs in Indianapolis; Oakland, California; and Guangzhou, China.

The airline closed its Hong Kong pilot base in late 2021 because draconian COVID quarantine requirements for pilots returning from overseas trips significantly hampered its ability to operate efficiently. Most pilots were relocated to Oakland.

The base closures are part of a multilayered cost initiative since last fall to right-size operations with the downturn in international and e-commerce shipping volumes as well as make long-term transformational changes. A restructuring, announced earlier this month, will see FedEx combine separate air, ground and parcel businesses under one roof to improve network efficiency. The efforts, launched after FedEx’s operating income significantly underperformed, are expected to generate $6 billion in permanent cost reductions.

A major focus is efficiently deploying crews, aircraft and commercial linehaul. 

FedEx plans to save $700 million per year in its air network by rerouting nonpriority shipments to ground transport and third-party carriers, deemphasizing its hub system in favor of more direct routes and consolidating other functions. The company is also accelerating the retirement of its MD-11 fleet by two years. FedEx operated 58 of the older, tri-engine jets and 119 Boeing 757-200s as of March 1.

FedEx officials have said they will reduce flight hours by more than 10 percent this quarter compared to last year and over the long term invest less in future aircraft as more flying is outsourced.

FreightWaves first reported in late March that FedEx planned to close its heavy maintenance facility at LAX next year and move those functions to its large regional hub in Indianapolis.

The closure of the pilot bases raises uncertainty for FedEx pilots as they try to close out a contract deal after two years of talks. Earlier this month pilots began voting on whether to give union leaders a mandate to call a strike if federal mediation and other steps fail to break the impasse.

“In the final stages of contract negotiations, senior FedEx executives have introduced career-altering changes for the dedicated pilot — a corporate-wide restructure with a new emphasis on outsourcing, pilot base closures, forced pilot downgrades (which equates to a pay reduction) and a push toward moving Express freight on slower modes of transport, essentially cannibalizing the FedEx Express flight network,” the Air Line Pilots Association said in statement last week marking FedEx’s 50th anniversary.

The strike authorization vote closes on May 17.

For more coverage on air cargo, go to FreightWaves.

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Single Pilot Ops ‘A Profit-Driven Scheme,’ Pilot Unions Say https://www.flyingmag.com/single-pilot-ops-a-profit-driven-scheme-pilot-unions-says/ Thu, 30 Mar 2023 17:01:56 +0000 https://www.flyingmag.com/?p=169368 Only one pilot on the flight deck is a "significant safety risk," the international group of commercial pilot unions said in a joint statement.

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Single pilot operations in commercial aircraft are “a profit-driven scheme that poses a significant safety risk,” according to leaders of the world’s largest pilot labor unions.

In a joint statement, representatives from the Air Line Pilots Association (ALPA), the International Federation of Air Line Pilots’ Associations (IFALPA), and the European Cockpit Association (ECA) called on airlines and manufacturers to rethink plans for single pilot operations.

According to the groups, two pilots at the controls remains the most important safety feature of an aircraft, and technology, no matter how sophisticated, “is not a replacement for pilots on the flight deck.”

The groups went on to say, “Whether you depart from New York, San Francisco, or Atlanta bound for London, Paris, or Tokyo, a crew of at least two qualified, experienced, trained, and rested airline pilots is at the controls on the flight deck of your plane. Every aspect of your flight—the aircraft, its systems, the regulations and standards that apply to the flight, and the procedures that pilots follow—is deliberately designed for a team working together on the flight deck.” 

Still, more than 40 countries have asked ICAO, the body that sets aviation standards, to help make single-pilot operations a reality. Additionally, the European Union Aviation Safety Agency (EASA), Europe’s equivalent to the FAA, is working to study regulatory requirements for single pilot procedures—noting that the change could begin as soon as 2030.

Proponents of the idea argue that removing one pilot from the flight deck would lower costs and ease crew shortages. Others say the advancements in technology are shaping the future, while human error is often a factor in aircraft accidents.

However, the idea of single-pilot operations is wildly unpopular among the pilot community and could be a hard sell for the flying public.

Boeing Southeast Asia President Alexander Feldman said, “The technology is there for single pilots, it’s really about where the regulators and the general public feel comfortable.”

But recent events have only validated the need for a second pilot. In November, an American Eagle flight flying from Chicago O’ Hare (KORD) to John Glenn International Airport (KCMH) had to return 30 minutes into the flight due to pilot incapacitation. Just last week, on March 22, an off-duty pilot stepped in, assisting with radio communication and helped land a Southwest flight after the Captain suffered a medical emergency and became incapacitated.

Together, ALPA, ECA, and IFALPA have vowed to take action with ICAO on the matter and will counter any move toward single pilot operations.

 “Some in the international airline industry want to put profit before safety. However, airline pilots around the world will not allow them to risk or roll back the industry safety record we’ve fought for decades to build—and on which passengers and shippers depend,” noted the groups.

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