India 'a critical growth market' for FedEx as it expands air express network
FedEx Express is putting itself on a stronger footing to tap into India’s booming trade ...
BA: WIND OF CHANGEMAERSK: BULLISH CALLXPO: HEDGE FUNDS ENGINEF: CHOPPING BOARDWTC: NEW RECORDZIM: BALANCE SHEET IN CHECKZIM: SURGING TGT: INVENTORY WATCHTGT: BIG EARNINGS MISSWMT: GENERAL MERCHANDISEWMT: AUTOMATIONWMT: MARGINS AND INVENTORYWMT: ECOMM LOSSESWMT: ECOMM BOOMWMT: RESILIENCEWMT: INVENTORY WATCH
BA: WIND OF CHANGEMAERSK: BULLISH CALLXPO: HEDGE FUNDS ENGINEF: CHOPPING BOARDWTC: NEW RECORDZIM: BALANCE SHEET IN CHECKZIM: SURGING TGT: INVENTORY WATCHTGT: BIG EARNINGS MISSWMT: GENERAL MERCHANDISEWMT: AUTOMATIONWMT: MARGINS AND INVENTORYWMT: ECOMM LOSSESWMT: ECOMM BOOMWMT: RESILIENCEWMT: INVENTORY WATCH
FedEx Express has gone from negotiating to keep its frustrated pilots onside, to encouraging them to seek employment in the passenger sector by signing with Pacific South America (PSA), an American Airlines subsidiary.
Collapsing air cargo volumes make for a stark contrast against soaring passenger flights since pandemic lockdowns, with some 700 of FedEx Express’s 5,800 pilots now considered ‘surplus to requirements’.
A memo, published on Twitter/X by aviation blogger JonNYC, suggests employment with PSA could involve career progression to American Airlines (AA).
PSA is making a tailored offering to tempt FedEx pilots that includes a $175,000 bonus in the first pay cheque followed by a $75,000 bonus after a year of employment. PSA also suggested its recruits could progress to flying for its parent within five years.
In the memo, Pat DiMento, FedEx’s VP flight operations and training, said: “While I understand this is not something that will appeal to every pilot, for those of you who are frustrated with current flight hours, career progression, or have just been on the fence about available options, you may consider this unique opportunity enough of an incentive to make a move.”
Meanwhile, rival UPS has reduced its head count by some 193 senior pilots, via voluntary severance and early retirement packages.
Earlier this year, FedEx pilots were near-unanimously poised to go on strike after contract renegotiations reached a stalemate, which had lasted since the previous contract expired in 2021. Represented by the Air Line Pilots Association, 97% of union members participated in a vote that saw 99% agree to allow a strike to occur.
Although FedEx branded this a “tactic” at the time – suggesting the vote was little more than a stunt without “…the express permission of the National Mediation Board” – the company appeared to re-evaluated its position in June, when a new bargain was struck.
“We are pleased to have reached a tentative agreement with our pilots as we continue delivering outstanding service to our customers around the world,” read a company statement.
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