Atlas Air signs 747 freight contract with FedEx
Atlas Air announced Wednesday that it operates two Boeing 747-400 freighter full-time for FedEx Express (NYSE: FDX) under a new long-term contract. The deal is in addition to the all-cargo carrier’s existing peak season multi-year contract that supplies FedEx with a minimum of five planes in the fourth quarter.
FedEx (NYSE: FDX) adds an additional airlift to cope with growing international e-commerce volumes in its express network. In its first fiscal quarter ended Aug.31, FedEx’s international parcel revenue grew 25.6% to $ 1.3 billion year-on-year, although air freight revenue increased from $ 75 million. from $ 47 million due to the extraordinary charter activity provided by FedEx at the start of the COVID pandemic. in 2020 for the delivery of personal protective equipment and other medical supplies.
The Atlas (NASDAQ: AAWW), which includes crew and maintenance, came into effect on September 1. The plane will be used on routes between Asia, Europe and the FedEx hub in Memphis, Tennessee, Robert Kirchner, the leader of the Atlas Air pilots’ union, told FreightWaves last week. .
He said the service had already experienced delays due to crew shortages at Atlas Air resulting from the departure of disgruntled company pilots. Neither company has answered questions about the new agreement or specified its exact duration.
Atlas Air pilots have expressed dissatisfaction with the company for failing to respond to demands for pay, schedule and working conditions during collective bargaining, resulting in a binding contract drawn up by arbitration that union members criticized. Under the new deal, pilots’ pay scales would increase by an average of 30%, but workers say the increase is not on a low basis and the contract fails in other respects.
“We are delighted to develop our long term relationship with FedEx. This agreement reflects the continued strong demand for air cargo capacity, particularly in the express and e-commerce markets, ”said John Dietrich, president and CEO of Atlas Air Worldwide Holdings, in a statement.
The news follows the signing by DHL Express of a contract extension with Atlas for access to 20 all-cargo aircraft.
Earlier this year, FedEx placed an order with Boeing for an additional 20,767 freighters.
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