DALLAS – As part of its efforts to streamline operations and networks, US-based cargo airline FedEx (FX) is set to close pilot bases in Alaska, California, and Germany. The company aims to eliminate billions in structural costs by fiscal year 2027, according to a report by FreightWaves.

In an email statement, FX announced that pilots who fly two older aircraft types based in Anchorage, Los Angeles, and Cologne would gradually move to other bases in the FedEx network.

The cargo airline said this move is part of its efforts to streamline operations and networks and eliminate billions in structural costs by the fiscal year 2027. Cologne Bonn Airport (CGN) pilots manage crews for medium-size Boeing 757 freighters. At the same time, Ted Stevens Anchorage International Airport (ANC) and Los Angeles International Airport (LAX) are home ports for McDonnell Douglas MD-11 pilots.

The airline stations pilots across the U.S., Europe, and Asia to improve efficiency. Having pilots reside in the same city where the flights originate leads to longer layovers and easier scheduling, as opposed to living in remote areas and commuting to the base for their next duty cycle.

FedEx also operates pilot bases in Memphis, Tennessee, the company's global hub, and regional hubs in Indianapolis, Oakland, California, and Guangzhou, China.

Reasons for Closures

The airline shut down its Hong Kong pilot base in late 2021 due to strict COVID quarantine protocols, which impacted its ability to operate effectively. FX pilots were relocated to Oakland.

The closures follow a multilayered cost-cutting initiative worth US$6bn spread over the next four years to address the downturn in international and e-commerce shipping volumes. This includes combining separate air, ground, and parcel businesses, rerouting nonpriority shipments to ground transport and third-party carriers, and accelerating the retirement of the MD-11 fleet.

The restructuring aims to improve network efficiency and save US$700m annually in the air network. FX is efficiently deploying crews, aircraft, and commercial linehaul while continuing to prioritize customer needs. FX says the base closures will not impact its current services and operations in these markets and that the relocation process will be gradual and without disruptions.

Further, FX plans to reduce flight hours by over 10% this quarter compared to the previous year and decrease investment in future aircraft over the long term as more flying operations are outsourced.

Call for Strike

On April 5, as FX executives stood inside the New York Stock Exchange (NYSE) announcing plans for a more profitable and efficient future, nearly 200 of the company's pilots protested the lack of a new employment contract on the street outside.

The FedEx Express unit of the Air Line Pilots Association (ALPA) had been in contract negotiations with corporate management for nearly two years, and they had grown increasingly frustrated. The goal had been to reach an agreement by May 2022, but the two parties had been unable to reach an agreement on three key issues: pay, contract duration, and lookback pay.

ALPA said in a statement marking FedEx's 50th anniversary that "During the final stages of contract negotiations, senior FedEx executives have proposed career-altering changes for the pilots, including forced pilot downgrades, pilot base closures, and a shift toward using slower transportation modes for Express freight, which would essentially cannibalize the FedEx Express flight network."

The strike authorization vote will conclude on May 17. The goal of the vote is not to strike, but to have a contract, said Chris Norman, FX captain and chair of the FX unit of the ALPA.

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Feature Image: FedEx is the largest cargo airline in the world. Photo: Luca Flores/Airways

https://airwaysmag.com/fedex-50-years-operations