Tag Archives: Boeing 757-200F

FedEx and its pilots reach a tentative agreement

FedEx Express (Memphis) and its pilots, represented by the Air Line Pilots Association (ALPA), have reached a tentative agreement on a new contract. The tentative agreement is subject to a final ratification vote of its members. ALPA issued this statement:

ALPA logo-2

On Wednesday, August 19, FedEx pilots, represented by the Air Line Pilots Association, Int’l (ALPA), reached a tentative agreement (TA) with FedEx management on an amended collective bargaining agreement. The parties have been actively negotiating since 2011. Discussions started in 2011 under a special interim discussions agreement that had originally been made by both parties to assist in narrowing the field of open items in order to conclude formal bargaining in a timely manner. Formal bargaining began in January 2013 when Section 6 openers were exchanged with management. On October 31, 2014, FedEx management filed for mediation with the National Mediation Board (NMB), and negotiations have been conducted under NMB guidance.

The new agreement is subject to review and finalization of contract language. Terms of the tentative agreement are not being released, as they first must be reviewed and approved by the FedEx ALPA Master Executive Council (MEC). If approved by the FedEx MEC leadership, the TA will be subject to a ratification vote of over 4,000 FedEx pilots. If ratified, the contract would become amendable in 2021.

Copyright Photo: Paul Ferry/AirlinersGallery.com. Boeing 757-236 (F) N915FD (msn 24120) departs from Luton Airport near London.

FedEx Express aircraft slide show: AG Airline Slide Show

AG WAN-Powered by AG

FedEx Corporation to acquire TNT Express for $4.8 billion

FedEx Corporation (FedEx Express) (Memphis) has announced its intention to acquire its European rival TNT Express (TNT Airways) (Amsterdam) in an all-cash public offer with a stated public value of $4.8 billion. FedEx is offering a 33 percent premium in its price offering for the stock of TNT. The combined European headquarters will be Amsterdam. TNT’s Liege cargo hub will be maintained.

The two companies issued this joint statement:

FedEx Corporation logo

TNT Express logo

 

Transaction highlights:

FedEx Corporation (FedEx) and TNT Express N.V. (TNT Express) reached conditional agreement on recommended all-cash public offer of €8.00 per ordinary TNT Express share.

The Offer Price represents a premium of 33% over the closing price of 2 April 2015 and a premium of 42% over the average volume weighted price per TNT Express share of €5.63 over the last 3 calendar months.

The transaction represents an implied equity value for TNT Express of €4.4 billion ($4.8 billion).

Transaction unanimously recommended and supported by TNT Express’ Executive Board and Supervisory Board.

High level of deal certainty.

PostNL N.V. has irrevocably confirmed to support the Offer and tender its 14.7% TNT Express shareholding.

Combination will transform FedEx’s European capabilities and accelerate global growth.

Customers will enjoy access to an enhanced, integrated global network, combining TNT Express strong European capabilities and FedEx’s strength in other regions globally, including North America and Asia.

FedEx and TNT Express employees share a commitment to serving customers and delivering value for shareholders and supporting the communities they live and work in.

The parties have agreed to certain non-financial covenants including:

Existing employment terms of TNT Express will be respected.

The European regional headquarters of the combined companies will be in Amsterdam/Hoofddorp.

TNT Express hub in Liege will be maintained as a significant operation for the group going forward.

TNT Express’ airline operations will be divested, in compliance with applicable airline ownership regulations.

FedEx and TNT Express anticipate that the Offer will close in the first half of calendar year 2016.

FedEx and TNT Express are confident that anti-trust concerns, if any, can be addressed adequately in a timely fashion.

Top Copyright Photo: Paul Bannwarth/AirlinersGallery.com. FedEx Express Boeing 757-204 (F) N923FD (msn 26266) departs from EuroAirport serving Basel/Mulhouse/Freiburg.

FedEx Express aircraft slide show: AG Airline Slide Show

TNT aircraft slide show: AG Airline Slide Show

Bottom Copyright Photo: Bernhard Ross/AirlinersGallery.com. TNT Airways Boeing 737-4M0 (F) OE-IAT (msn 29210) taxies to the runway at Frankfurt.

SF Airlines orders new Boeing 767-300 ER freighter conversions

SF Airlines (Shenzhen) is planning to add the larger Boeing 767-300F freighter to its growing fleet. The 767 will be a new type for the carrier. The cargo airline has placed an order with Boeing for an undisclosed number of 767-300 ER passenger-to-freighter conversions (Boeing Converted Freighters). SF Airlines, a subsidiary of Shenzhen, China-based delivery services company SF Express, will accept its first redelivered 767 in the second half of 2015.

SF Airlines currently operates Boeing 757-200F freighters (above) and Boeing 737 freighters.

Copyright Photo: Yuji Wang/AirlinersGallery.com. Boeing 757-2Z0 (F) B-2832 (msn 25887) is pictured at Shanghai (Pudong).

UPS posts a net profit of $1.2 billion for 2013

UPS (United Parcel Service) (UPS Airlines) (Atlanta) posted net earnings of $1.2 billion for 2013. The company issued this full financial statement for the fourth quarter and 2013:

UPS released details regarding fourth quarter 2013 results. Diluted earnings per share totaled $1.25, a $0.07 decline from 2012 fourth quarter adjusted results. Average daily package volume increased 6.0%, as total deliveries in December surged 20%. Significantly higher than predicted volume and inclement weather contributed to excess operating costs in the U.S., negatively affecting results.

During the fourth quarter 2012, UPS reported a diluted earnings per share loss of $1.83, due to an after-tax, non-cash charge of $3.0 billion to account for a mark-to-market pension adjustment.

“As the retail market shifts to a direct-to-consumer model, more and more companies are leveraging UPS solutions,” said Scott Davis, UPS chairman and CEO. “As a result, we experienced an unprecedented increase in volume, exceeding even our most optimistic plans.

“The increased volume put a strain on our network, causing delays. In response, UPS deployed additional people and equipment, placing a greater emphasis on service than cost,” Davis explained. “UPS will make the necessary investments and operational improvements to ensure we meet the needs of the marketplace.”

The company expects full-year diluted earnings per share to be within a range of $5.05 to $5.30, an increase of 11%-to-16% over 2013 adjusted results.

UPS delivered 20 million packages per day during the fourth quarter. Total shipments in 2013 increased to 4.3 billion, a 3.9% improvement over 2012.

During the holiday period, global daily deliveries exceeded expectations by surpassing 29 million packages on five days, with peak volume exceeding 31 million on December 23. Also during this period, UPS experienced 10 days with delivery volume that exceeded the company’s previous high.

Cash Flow

For the year ended Dec. 31, UPS generated $5.3 billion in free cash flow, producing a net income-to-cash conversion ratio of more than 120%. The company paid dividends of $2.3 billion, an increase of nearly 9% per share over the prior year, and repurchased more than 43 million shares for approximately $3.8 billion.

U.S. Domestic Package

U.S. Domestic fourth quarter revenue improved 4.2% to $9.3 billion. Daily package volume increased 5.6% with Deferred and Ground leading the way, up 8.0% and 5.8% respectively.

Total revenue per package declined 1.3%, as lower fuel surcharges, changes in product and customer mix, as well as higher service refunds, contributed to the drop.  Shippers continue to utilize the UPS portfolio, choosing lower cost over faster delivery, as evidenced by more than 30% growth in UPS SurePost.

Operating profit totaled $1.2 billion as additional costs associated with a greater-than-expected surge in volume and weather led to a $178 million decline from the prior-year adjusted results. Increased compensation and benefit costs reflected the deployment of additional resources in an attempt to meet service commitments.  During the quarter, UPS exceeded seasonal hiring targets by more than 30,000, deploying a total of 85,000 temporary employees. In addition, the company experienced significantly higher purchased transportation expenses.

On a reported basis, the operating loss for the fourth quarter of 2012 totaled $1.8 billion as a result of the mark-to-market pension charge.

International Package

International revenue increased 5.3% to $3.4 billion on 8.8% growth in daily package volume. UPS Export products rose 9.5% per day, driven primarily by 13% growth in Europe and significant growth in the Asia-to-Europe trade lane. Non-U.S. domestic products were up 8.2% with strong growth in Poland, Italy, and Canada. During December, the segment achieved a peak volume day above four million pieces and exceeded last year’s high on 11 days.

Export yield declined 3.4% on a currency neutral basis, as a result of lower fuel surcharges and customer preference for non-premium products. Double-digit gains in Pan-European shipments also lowered revenue per piece.

Operating profit improved 7.6% to $537 million. Operating margin expanded 30 basis points to 15.9%, compared to last year’s adjusted results.

On a reported basis, the operating loss for the fourth quarter of 2012 totaled $442 million as a result of the mark-to-market pension charge.

Supply Chain & Freight

Revenue in the segment fell 5.8% to $2.3 billion, due to declines in the Freight Forwarding unit. Operating profit was flat compared to 2012 adjusted results, as improvements in Distribution offset declines in Forwarding and UPS Freight.

On a reported basis, the operating loss for the fourth quarter of 2012 was $541 million as a result of the mark-to-market pension charge.

The Forwarding unit experienced a revenue decline resulting from decreased tonnage and revenue per kilo, in International Air Freight. The Ocean Freight business reported growth in shipments and operating margin expansion.

Distribution revenue increased over the prior year period. The retail and healthcare sectors contributed to the improved results. Global footprint expanded during the year to 284 facilities, with more than 22 million square feet of space.

UPS Freight LTL revenue increased 2.3% over the prior year driven by LTL tonnage and pricing improvements.

Outlook

The company announced plans to repurchase $2.7 billion of UPS shares during 2014. Capital expenditures are anticipated to be approximately $2.5 billion. This includes accelerated deployments in operational technologies and over $500 million of increased investments in capacity expansion and hub modernization.

“While the year ended on a challenging note, we are confident in our ability to adapt and we expect much better results in 2014,” said Kurt Kuehn, UPS chief financial officer. “UPS expects balanced profitability growth across all segments in a slightly better economic environment, resulting in full-year guidance of diluted earnings per share of $5.05 to $5.30, an 11%-to-16% increase over our 2013 adjusted results.”

Copyright Photo: Keith Burton/AirlinersGallery.com. Boeing 757-24A (PF) N416UP (msn 23903) prepares to arrive in Las Vegas.

UPS Airlines: AG Slide Show

Bloomberg visits UPS’ sorting hub at UPS Worldport, Louisville, Kentucky:

UPS-We Love Logistics logo

 

DHL Aero Expreso is replacing its 727-200 fleet with 757-200 freighters

Copyright Photo: Raul Sepulveda.

DHL Aero Expreso (Panama City) is replacing its older Boeing 727-200 freighter fleet with recently-converted Boeing 757-200 freighters.

The first to be delivered was 757-27A HP-1810DAE (msn 29611) on August 4, 2010.

The second, ex-FAT 757-27A HP-1910DAE (msn 29607) arrived on September 22, 2010.  The conversion work was performed for Precision Conversions, LLC. This second 15 pallet Boeing 757-200PCF freighter was delivered to Aerolease Aviation, LLC. The Pratt & Whitney powered 757 represents the second of three 757-200PCFs to be converted for Aerolease under a multi-aircraft deal announced in April 2010. The freighter includes a weight upgrade option that can bring the total payload up to 80,000 pounds. HP-1910DAE was leased by Aerolease to DHL Aero Expreso.

The conversion was completed at Flightstar Aircraft Services in Jacksonville, Florida. Precision Conversions has re-delivered a total of 26, full fifteen pallet position 757-200PCF conversions to operators in Europe, North and South America, Africa, China, and India.

Copyright Photo: Raul Sepulveda. DHL Aero Expreso’s Boeing 757-27A HP-1910DAE (msn 29607) is pictured in operation at Miami.

Capital Cargo International Airlines’ crewmembers ratify the new contract

Capital Cargo International Airlines (Orlando) flight crewmembers, represented by the Air Line Pilots Association, International (ALPA), ratified a new tentative contract agreement. Of the 95 percent of CCIA crewmembers who voted, 71 percent voted in favor of the agreement.

The contract becomes effective on August 1, 2010. The company has crew bases in Cincinnati, Toledo, and Miami.

Copyright Photo: Bruce Drum. Boeing 757-232 (SF) N620DL (msn 22910) prepares to taxi at the MIA base.

Arrow Cargo files for bankruptcy protection and will be liquidated

Arrow Cargo (3rd) (Miami) filed for bankruptcy protection yesterday (June 30) and its assets will be liquidated.

Read the Reuters report:

CLICK HERE

Copyright Photo: Ken Petersen. Ex-Eastern Airlines Boeing 757-225 (F) N688GX (msn 22688) taxies at New York (JFK) in better times.

Capital Cargo International Airlines’ pilots to vote on a new contract

Capital Cargo International Airlines’ (Orlando) pilots, represented by the Air Line Pilots Association, International (ALPA), will vote on a tentative agreement that, if ratified by members, will result in a new contract. The proposed 36-month agreement would include pay increases, a new contract bonus, as well as improved work rules and quality of life enhancements for cockpit crewmembers.

Negotiators for the Air Line Pilots Association, Int’l (ALPA), which represents CCIA crewmembers, and Capital Cargo International Airlines met during the week of May 10 under the supervision of the National Mediation Board (NMB). The crewmembers and management worked out the deal during the late hours of May 15, after intense bargaining that extended over the weekend. Final language was completed this week.

In June, the pilot leaders and negotiating committee team will begin a series of road shows, in Cincinnati, Toledo and Miami—the crew hubs—to provide details of the agreement to the membership. After the education campaign is completed, Capital Cargo’s 122 cockpit crewmembers will have the opportunity to vote on whether to ratify the agreement.

Capital Cargo crewmembers merged their independent union with ALPA in 2007. At that time, they began negotiating as an ALPA pilot group after voting down two tentative contract agreements achieved by their independent union.

Copyright Photo: Ex-Delta Boeing 757-232 (SF) N620DL (msn 22910) , now with Capital Cargo International Airlines, taxies away from the cargo spot at Miami.