Cargojet awarded Canada Post contract

[Albacore]

http://www.ctvnews.ca/business/cargojet ... -1.1693251

[DanJ]

Interesting to see the fallout of this, since Barry has an ownership stake and a seat on Purolator's board. Thoughts are with those at KF facing uncertainty.

[doorhandle27]

To the lowest bidder goes the prize. I'm sure the unfortunate KFC crew will find work at CJ as they'll be struggling to find crew, though the KFC guys better be ready for a pay cut and an increase in work load. It's good for the CJ guys who were facing cuts with the replacement of the 27, glad to hear it.

[rudder]

Does KFC have a Plan B? One would expect that there will be a pilot exodus in advance of the contract transfer in 2015.

[sstaurus]

I wonder what will happen to the old convairs? It would also be sad to see them stop flying...

[DanJ]

Apparently today, the Purolator ramp employees were told when the contract changes, their jobs are gone. Currently, Purolator staff unload the planes, and the contract says Cargojet will do it. I imagine they will have a decent chance of getting hired by CJ, but you can be sure it will be less money and no seniority.

[atpilot]

It looks like they lost all of it. There's a lot of good people there with young families. Good luck to you all.
http://www.welcometokelowna.com/news/ne ... r_Contract

[MyWave]

How likely is it that Canada Post has instructed Cargojet not to hire any Flightcraft pilots?
Pilots jumping to CJ from KF will leave flights short-staffed in the run-up to the end of the contract.
That could cause cancelled flights and service interruptions.

Is there any precedent for this sort of thing?
Wouldn't want to be a flight crew operating on the Last Night.

Thoughts also going out to Purolater ramp workers

[DanJ]

I wonder if the DC-10's might go over to CJ? I recall back when these came on line, that the story was that Canada Post leased them and KF operated them. I read a report that CJ was going to have 4 757's before the end of this year, but that release was out in January, before this news. Wonder what plans CJ is going to have for adding planes to take on this business.

[acidgambit]

Dan J: I doubt Cargojet would want the DC-10s. It would not make sense. I don't even think Cargojet's AMO is set up for DC-10s. They would basically have to send a bunch of mechanics on the DC-10 endorsement courses. That cost a lot of money. It is better to operate what the company is already familiar with, which is the 27 and 57. They have the facilities and man power all set up for it, so why pour money into the unknown. Just my opinion.

[ScudRunner]

I highly doubt CJ would pick up any of KFC planes especially the DC-10s.

CJ's fleet transition into the 757/767 will boost capacity if merely swapping 727 one for one to the 757. With one year to ramp up for the new contract, this might mean a few 727 stick around just a little bit longer as 757/767 come online.

The issue with the 757 is FedEx and UPS are snapping them up on the used market driving the prices up and eating up conversion slots at various shops worldwide.

767 are a little easier to acquire, however for mail it doesn't require cutting the big hole in the side, DHL, ABX and formerly Airborne Express used the smaller cans that fit through the normal pax door and I would imagine a few are available for lease.

Now what will be interesting is the smaller feeder routes currently operated by KFC Convair 580's.

[acidgambit]

I wouldn't be surprised if Cargojet contracts the smaller feeder routes out.

[fish4life]

ATR's would probably be a logical choice so First Air ? Calm Air ? Both expensive maybe an operation out east like Pasco ?

[atpilot]

globeadvisor.com: Air Canada, Cargojet explore strategic alliance
https://secure.globeadvisor.com/.../RBA ... JET1120ATL
Nov 21, 2013 - MONTREAL -- Air Canada is teaming up with Cargojet Inc. to explore ways they can work together to reduce costs and boost revenues in areas ...

I wonder if this will solve the aircraft needs for CargoJet.

[teacher]

I've always thought that having Q400s combis doing some of our routes would be a great way to move freight on aircraft that are already going there.

[YYCDavid]

In a way it's a good thing, it will allow the KF pilots to move on to a flying job where they won't need to put up the the antiquated and redundant operations of KF. If other airlines in Canada had 3 brain cells functioning they would be grabbing as many KF guys as possible based on their 705 experience and the fact they fly real airplanes that don't rely on a computer telling them the problem.

[Ex DC10 Driver]

Glad to see Flightcraft is down and not out! Hopefully they will find some additional work for my friends who are still there.
Local News posted October 23, 2014 by Anita Sthankiya
Kelowna Flightcraft Lands Purolator Contract
Kelowna Flightcraft has been awarded the contract to provide air cargo feeder services for Purolator Inc.

Flightcraft will provide the handling and air movement services for the BC Feeder Service for the next five years starting on April 1st, 2015. At the end of the contract agreement there will be an option for a two year extension.

“Kelowna Flightcraft currently provides Purolator Inc. with their mainline, coast to coast air cargo services” said Tracy Medve, President “and we look forward to continuing our 35 year relationship with this important customer and providing them with outstanding service on a smaller scale.” The BC Feeder operations will be based out of YVR in Vancouver.

This is good news for the Kelowna based company as in February Flightcraft lost a billion dollar contract with Canada Post. The domestic air contract was awarded to a Mississauga, Ont. company instead for a seven year term.

Kelowna Flightcraft operates and lease over 70 aircraft and are Canada’s largest cargo operator.


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Comments

[tincanflyer]

....they didn't really 'LAND' it.
More like kept it...............but then again, how could they lose it.