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 emailed statement, FX announced that pilots flying two older aircraft types based in Anchorage, Los Angeles and Cologne will 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 fiscal year 2027. Cologne Bonn Airport (CGN) pilots manage crews for medium-sized 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 US, Europe and Asia to improve efficiency. Having pilots live 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 is closing its Hong Kong pilot base at the end of 2021 due to strict COVID quarantine protocols, affecting its ability to operate effectively. FX pilots were moved to Oakland.
The closures follow a multi-layered cost-cutting initiative of US$6 billion spread over the next four years to address the decline in international and e-commerce shipping volumes. This includes combining separate air, ground and package operations, rerouting non-priority 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 efficient deployment of crews, aircraft, and commercial linehaul, while continuing to prioritize customer needs. FX says the base closures will not affect its current services and operations in these markets and that the relocation process will be gradual and without disruption.
Furthermore, FX plans to reduce flight hours this quarter by more than 10% compared to the previous year and reduce investment in future aircraft in the long term as more flight operations are outsourced.
Call for strike
On April 5, when FX executives stood in the New York Stock Exchange (NYSE) and announced plans for a more profitable and efficient future, nearly 200 of the company’s pilots protested the lack of a new labor contract on ‘ e 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 become increasingly frustrated. The goal was to reach an agreement in May 2022, but the two parties were unable to reach an agreement on three important issues: pay, contract duration and retrospective pay.
ALPA said in a statement marking FedEx’s 50th anniversary that “In 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 to using slower modes of transport for Express freight, which would essentially cannibalize the FedEx Express flight network.
Voting for strike authorization will end on May 17. The purpose of the vote is not to strike, but to have a contract, said Chris Norman, FX Captain and Chairman 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
