Freight & Mail

[Ramp Rogue]

Now that we have merged, does anyone know if we are going to continue to contract out Freight & Mail? Or if it is coming back in house since the old HP did their own Freight & Mail? Hopefully all contracts will be cancelled and we'll be doing the work ourselves again.

 

[barbeetantrums]

Now that we have merged, does anyone know if we are going to continue to contract out Freight & Mail? Or if it is coming back in house since the old HP did their own Freight & Mail? Hopefully all contracts will be cancelled and we'll be doing the work ourselves again.

Most of the stations that have cargo staffed with HP fleet service (PHX, LAS, LAX, DEN, ONT and others) are stations that provided cargo service in the early years. They then went to contractors in later years but the places staffed with HP fleet service cannot outsource as per the TWU contract -HOWEVER- if there are enough ramp positions at a station, they can relocate personnel to ramp positions THEN outsource. If east cargo facilities are contracted out, they are apt to stay that way. Doug Parker would like to employ as few employees as possible. :huh: :blink: :unsure:

Doug Parker would like to employ as few employees as possible. :huh: :blink: :unsure:

What I think I am trying to say is that if DP had his way without that pesky fleet service contract mucking everything up, the remaining cargo facilities would have been outsourced several years ago.

 

[john john]

Now that we have merged, does anyone know if we are going to continue to contract out Freight & Mail? Or if it is coming back in house since the old HP did their own Freight & Mail? Hopefully all contracts will be cancelled and we'll be doing the work ourselves again.

No sense having Airfreight employees if you can’t move the mail and freight (RJ’s) LCC models don’t rely on a/f and mail.

 

[BoeingBoy]

I can't argue with the problem of RJ's vis a vis carrying mail/frieght, but it should be noted that WN - the grandfather of LCC business models - gets about the same percentage of their revenues from cargo as US does (2%).

Jim

 

[john john]

I can't argue with the problem of RJ's vis a vis carrying mail/frieght, but it should be noted that WN - the grandfather of LCC business models - gets about the same percentage of their revenues from cargo as US does (2%).

Jim

Bob US use to due huge Airfreight and mail service this has dwindled over the years to get in line with the LCC + the RJ’s can’t accommodate the mail and freight

 

[BoeingBoy]

I'll be the first to admit that I didn't check every 3rd quarter for the last 10 or so years - just the most recent and late 90's (98 & 99 specifically). Based on only that, US' (East) revenue from cargo has been relatively stable at 30-some million each 3rd quarter or about 2% of passenger revenue. And in the late 90's we had a lot more mainline aircraft than now and a lot less RJ's.

Conversely, WN's numbers (absolute cargo revenue) have been growing as they've grown, though cargo revenue as a percentage of passenger revenue is relatively constant comparing the same periods.

Jim

 

[etops1]

from what i remember. this question was brought up to dp at the clt town hall meeting. he said that someone at the old usairways management thought it was a good idea to contract the cargo out to our friends at lufthansa. people went ballistic. he said that there is no reason why lufthansa should be flying freight for us if we have our own widebody planes that could do the job. it's our cargo so it should be flown by our airpplanes and generating our money. he said that the new cargo dept is on it and that the cargo should be in house very soon .

 

[Dog Wonder]

He said that someone at the old usairways management thought it was a good idea to contract the cargo out to our friends at lufthansa. people went ballistic. he said that there is no reason why lufthansa should be flying freight for us if we have our own widebody planes that could do the job. it's our cargo so it should be flown by our airpplanes and generating our money. he said that the new cargo dept is on it and that the cargo should be in house very soon .

That some one was offered the VP job in Cargo at the new airline and turned it down,

LH will be gone soon, maybe it will offset the losses from not carrying live animals and DG.

 

[RedOne]

Cargo years ago, was a very good business. Then cut-backs began, and one of the first things cut was sales reps. No sales reps to make contacts, generate new business, continue relations with existing customers and cargo started dropping off. Contract it out to another air carrier, and they begin to take away your customer. The only ones you keep are the customers that the contact carrier can't offer service on their airline to. When I retired, about the only thing we were hauling was human remains, cut flowers, and (rotten) fresh fish.

I remember the days of old, when it was said that the cargo on the charlotte - london paid the expenses, and the passengers fares were the icing on the cake. Course, I remember making a decent wage, decent benefits for both active and retired employees, also decent relations and respect between management and employees. And, those days are gone too.