LAXintl
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Fedex Chooses ST Aerospace For B757 Conversions

Fri Jan 19, 2007 1:21 pm

ST Mobile Aerospace has won a 7 year contact to convert 87 Boeing 757-200s into freighters on behalf of Fedex.

http://www.staero.aero/www/newsevent...sarticle.asp?newsid=OTAwMDAwMDA5OA
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jupiter2
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Fri Jan 19, 2007 1:26 pm

Has the question as to where Fedex are going to get 87 757's been answered yet ??

RL
 
eraugrad02
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Fri Jan 19, 2007 1:32 pm

Wonder if fedex will ever put winglets on these.
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bhmbaglock
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Fri Jan 19, 2007 2:16 pm

If NG/Airbus win any of the USAF tanker contract it would be pretty interesting to see this activity and the KC-30 assembly/conversion all taking place at the same airport.
Where are all of my respected members going?
 
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yyz717
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Fri Jan 19, 2007 2:32 pm

Quoting Jupiter2 (Reply 1):
Has the question as to where Fedex are going to get 87 757's been answered yet ??

Good question! The original Fedex press release was for 90 752F's to be acquired/converted. The adjustment to 87 suggests a source(s) has been found.
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crownvic
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Fri Jan 19, 2007 2:43 pm

As for winglets and even know FedEx has money to "burn", the utilization rate of FedEx a/c vs. passenger a/c is quite low. With a passenger a/c, the additional winglet cost is amortized over a shorter period because of the much higher utilization. It will take much longer with FedEx's lower utilzation rates to pay off the additional investment. That is not to say FedEx will do it anyway, but I am talking from an economic standpoint.
 
graphic
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Fri Jan 19, 2007 4:15 pm

Quoting Crownvic (Reply 5):

FedEx isn't an airline, they are a shipping/freight company that does a portion of their business with airplanes. FedEx's overal operation (ground transit, Kinkos/FedEx, etc) would probably amortize the investment alot quicker than an airline flying pax around would.
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tommytoyz
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Fri Jan 19, 2007 5:09 pm

Quoting Graphic (Reply 6):
FedEx isn't an airline

FEDEX is an airline. Just ask the FAA. They have scheduled flights carrying commercial cargo. Granted FEDEX has other businesses like Kinkos unrelated to airlines, but the do have an airline certificate. FAA Certificate Number FDEA140A, operating 400 jet aircraft.

Got to be accurate, IMHO.

As to the spirit of your post, the vast majority of revenues derived by the FEDEX Corporation is derived from the airline business and not ground transport or photocopy services, etc....
 
jonathan-l
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Fri Jan 19, 2007 6:12 pm

Quoting Tommytoyz (Reply 7):
the vast majority of revenues derived by the FEDEX Corporation is derived from the airline business and not ground transport

Can the ground transport and airline really be separated when accounting for revenue? As an integrator, FDX differentiates itself from a general cargo airline because it goes and picks up its parcels with a truck to bring them at the airport and then redelivers it to the recipient with a truck. Without the truck, Fedex would be a totally different business.
 
CosmicCruiser
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Fri Jan 19, 2007 10:34 pm

Quoting Crownvic (Reply 5):
the utilization rate of FedEx a/c vs. passenger a/c is quite low.

Granted, years ago the jet flew to a city and sat all day then flew back. Not true anymore though. We sometimes gripe that maint doesn't have the time the need because the jets are constantly flying. For example an MD-11 will fly MEM-CDG be on the ground about 2 hours and turn right back! this is very common now. Often the outbound crew will get on the jet as the inbound crew gets off. Also an MD-11 full of freight, a large portion P1, will generate a ton more revenue than a jumbo full of pax.


Quoting Jonathan-l (Reply 8):
Without the truck, Fedex would be a totally different business.

yea, we'd be called Flying Tigers.  Wink
 
SkyexRamper
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Sat Jan 20, 2007 1:20 am

Quoting Graphic (Reply 6):
FedEx isn't an airline

True....FedEx Corp is not an airline but they own an airline. It's called FedEx Express which is a part 121 operation. Their site states they have 669 airplanes.

[Edited 2007-01-19 17:23:43]
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BlatantEcho
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Sat Jan 20, 2007 1:39 am

Cosmic, I assume P1 is priority overnight packages?
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CosmicCruiser
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Sat Jan 20, 2007 2:08 am

Quoting BlatantEcho (Reply 11):
Cosmic, I assume P1 is priority overnight packages?

yea, Priority 1 is the high dollar stuff. I've heard some figures on what revenue a loaded int'l MD-11 flight generates and it's impressive. But then there's other cargo categories that demand high fees as well.
 
graphic
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Sat Jan 20, 2007 2:17 am

Quoting Tommytoyz (Reply 7):
FEDEX is an airline.

In paperwork only. They do not operate as fixed a schedule as passenger airlines do, they don't have to fly all day with their airplanes to make money because packages don't demand x number of frequencies per hour, they go when the plane goes, as such, the plane can sit around all day and let the bags pile up in the hold, then go out full. (Ok, I know they don't do it that way, it gets loaded all at once, but you know what I mean).

On top of that, FedEx is a freight delivery service moreso than an airline, they just happen to use airplanes to move much of their freight. They were delivering packages long before they were flying airplanes, and when the time was right, they used the airplane to compliment their business, not to rely on it. They still have a large ground network and Kinkos, so FedEx can't be considered an airline.
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cloud4000
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Sat Jan 20, 2007 2:26 am

Quoting BHMBAGLOCK (Reply 3):
If NG/Airbus win any of the USAF tanker contract it would be pretty interesting to see this activity and the KC-30 assembly/conversion all taking place at the same airport.

Airbus will never, ever win a tanker order from the USAF.
Boston, USA
 
Flyer732
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Sat Jan 20, 2007 2:35 am

As an unrelated FedEx question...did FedEx recently start serving Cairo? I'd never seen them before but in my past two trips through there I've seen an MD-11 parked remote....any ideas?
 
AviationAddict
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RE: Fedex Chooses ST Aerospace For B757 Conversion

Sat Jan 20, 2007 3:28 am

Quoting Graphic (Reply 6):
FedEx isn't an airline

I worked for FedEx for a bit and I have to say you're very wrong. The company considers itself to be an airline first and foremost, we just carry boxes, not people. The trucks and ground stations are all there to help feed the airline service, not the other way around. All FedEx employees also get travel benefits just like employees of other airlines. And, if that doesn't convince you, just ask the FAA, as Tommytoyz suggested.

[Edited 2007-01-19 19:32:10]
 
aogdesk
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Sat Jan 20, 2007 3:51 am

Graphic,

Thank you for gracing us with your vast store of knowledge. I can finally sleep at night now that I know that FedEx is not an airline.

FYI, FedEx and UPS ARE airlines. They both have 121 Certificates, THATS what makes an airline, not what they fly. Your argument is as absurd as saying that WN is not an airline because they are an LCC without frills.

Theres an awful lot of expertise and knowledge on this board. A person can do themselves a favor by listening more than talking.
 
nosedive
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Sat Jan 20, 2007 4:02 am

Quoting Graphic (Reply 13):
In paperwork only. They do not operate as fixed a schedule as passenger airlines do, they don't have to fly all day with their airplanes to make money because packages don't demand x number of frequencies per hour, they go when the plane goes, as such, the plane can sit around all day and let the bags pile up in the hold, then go out full. (Ok, I know they don't do it that way, it gets loaded all at once, but you know what I mean).

Eric, by your logic any charter based airline isn't an airline either.

Quoting Graphic (Reply 13):
They were delivering packages long before they were flying airplanes, and when the time was right, they used the airplane to compliment their business, not to rely on it.

FedEx Ground, Custom Critical, and Logistics... yes. Trick here is, FedEx purchased trucking lines to compliment their airside services, not to mention make more money.
Federal Express History
Smith buys controlling interest in Arkansas Aviation Sales- 1971
Federal Express Incorporated- 1971
1st flight- 1973
Caliber Corp (RPS, Viking) acquired 1998 (marks the establishment of FedEx Corp)
Passport Transport, TowerGroup, World Tariff Ltd all acquired- 2000
American Freightways acquired- 2001
Caribbean Transportation Services acquired- 2003
Kinkos acquired- 2004
Ergo, if you're talking about FedEx Corp, you're right; it is no airline, but it manages one- FedEx Express. What FedEx corp is trying to achieve is ever increasing "integration" between various methods of delivery.

Quoting CosmicCruiser (Reply 9):
yea, we'd be called Flying Tigers.

Bought by FedEx in 1989  Wink

Quoting Jonathan-l (Reply 8):
Can the ground transport and airline really be separated when accounting for revenue?

Shouldn't it be sperated, by law, for accounting purposes? Seriously, I have no idea.
 
smashme33
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Sat Jan 20, 2007 4:09 am

Will these conversions be done at KBFM? I used to rent a 152 there and was always impressed will all the big FedEx movement there. If I remember correctly, there were 727's and I think MD-11's there for conversion. Correct me if I am wrong.
 
bhmbaglock
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Sat Jan 20, 2007 11:46 am

Quoting Smashme33 (Reply 19):
Will these conversions be done at KBFM? I used to rent a 152 there and was always impressed will all the big FedEx movement there. If I remember correctly, there were 727's and I think MD-11's there for conversion. Correct me if I am wrong.

I'm not absolutely sure about the previous conversions but these will be done at Brookley per the ST Aero website.
Where are all of my respected members going?
 
SkyexRamper
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Sat Jan 20, 2007 11:50 am

Quoting Graphic (Reply 13):
they don't have to fly all day with their airplanes to make money because packages don't demand x number of frequencies per hour

An airline doesn't mean they fly all day...it's the flight times and routings that the airline chooses. A passenger airline could only have 3 flights per day per airline...but it wouldn't be cost effective. Fedex operates on a set schedule, just not to the scale of a passenger airline.
Good Luck to all Skyway Pilots! It's been great working with you!
 
Lucky42
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Sat Jan 20, 2007 12:05 pm

Quoting Graphic (Reply 13):
They were delivering packages long before they were flying airplanes

I don't know where you get your twisted logic from...Your arguement actually has more merit for UPS than FedEx. UPS is a far larger ground operator than FedEx. But FedEx has always been flying airplanes from day one. Like the other posters have said here thay operate under a 121 operating cert. Same rules and regs apply to them as they do to the pax carriers. Being a UND student you might want to get a little education on what you perceive to be a real airline or not. Bottom line UPS and FedEx are AIRLINES they just dont carry pax.
 
aogdesk
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Sat Jan 20, 2007 12:55 pm

Graphic, google Fred Smith  Smile
 
crownvic
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Sat Jan 20, 2007 2:25 pm

CosmicCruiser...Your comparing "apples to oranges"...Granted, an international flight with a FDX MD-11 will have a much higher utilization rate, but I am talking about their domestic fleet where the 757 will serve. Although the current daily use of FDX a/c is definitely more than it use to be, there are still many airports that I see FDX equipment "resting" during the day and there is no way you can say a domestic package/freight operator uses it's a/c comparable to a passenger carrier.
 
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tjwgrr
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Sat Jan 20, 2007 9:30 pm

Looks good- wonder if they'll end up with RR or PW powerplants?


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MEA-707
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Sat Jan 20, 2007 9:57 pm

looking at the current 757 operators, there are many aircraft which are likely to become available in the next 5 years. I am sure FedEx is already in talks with probably a combination of 2 of below likely candidate packages

mainland China
25 China Southern, 13 Shanghai, 12 Air China, 9 Xiamen = 59 aircraft. The Chinese airlines don't make flights longer then 4000 km with them, they have loads of 737s and A-320s on order which are capable replacement on anything they currently fly to.

European airlines
19 Thomsonfly, 17 Thomas Cook, 14 BA, 13 First Choice, 12 Condor, 7 Monarch, 7 Iberia, and lots with 2 to 5 airframes; most use them for relatively short flights, all airlines likely to take (more) 737s and A-320 family.

Major US airline
United (96 aircraft) is the US major which is the most likely to fully or partially replace the 757 in the next 10 years. United is the only one who isn't in the process of redefining and reallocating the role of the 757 to longer haul flights. They might do a surprise major order for A-320/321s to replace them, possibly in a package deal taking over the FedEx penalty credits for cancelling the A-380.
The other airlines; Northwest, Continental, US, American and Delta seem to like their 757s too much although I can see Northwest, US or American be tempted to offload 10 to 20 if the price FedEx pays is right.
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CosmicCruiser
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RE: Fedex Chooses ST Aerospace For B757 Conversions

Sat Jan 20, 2007 10:45 pm

Quoting Crownvic (Reply 24):
CosmicCruiser...Your comparing "apples to oranges"...Granted, an international flight with a FDX MD-11 will have a much higher utilization rate, but I am talking about their domestic fleet where the 757 will serve

I didn't realize you were speaking of ONLY one theatre, just domestic. However looking at the whole package it's not apples and oranges since the world operation is so much larger than just domestic and growing bigger everyday. Even though some jets may sit all day more and more dom. jets will turn back in the afternoon and the crew that brought the jet in will return the next morning for the day sort. I think you must consider the total utilization of jets not one facet.
 
cf6ppe
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RE: Fedex Chooses ST Aerospace For B757 Conversion

Sun Jan 21, 2007 3:25 am

Quoting Jupiter2 (Reply 1):
Has the question as to where Fedex are going to get 87 757's been answered yet ??



Quoting Yyz717 (Reply 4):
Good question! The original Fedex press release was for 90 752F's to be acquired/converted. The adjustment to 87 suggests a source(s) has been found.

The subject aircraft will be most likely acquired from aircraft leasing companies.
Note: Most airline operated aircraft are owned by leasing companies, and not the airlines themselves.

Quoting Smashme33 (Reply 19):
Will these conversions be done at KBFM?



Quoting Laxintl (Thread starter):
ST Mobile Aerospace has won a 7 year contact to convert 87 Boeing 757-200s into freighters on behalf of Fedex.

ST Mobile Aerospace is at Mobile Downtown Airport i.e., BFM. You can see the big buildings from Interstate 10 south of downtown Mobile. ST Mobile Aerospace and previous companies - i.e., Mobile Aerospace, etc. - have done maintenance checks on FedEx aircraft for many years. Several of the MD10 conversions were even done at Mobile. The ST Mobile Aerospace complex shows up quite well on Google Maps.

Quoting Tjwgrr (Reply 25):
Looks good- wonder if they'll end up with RR or PW powerplants?

Yes, the FedEx B752?F fleet will include both RR or PW powerplants.

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