FedEx retires 24 freighters from domestic fleet
FedEx Corp. has retired 18 Airbus A310-200 and six Boeing MD10-10 aircraft, as well as 43 jet engines, from its U.S. Express fleet. In a press release, the U.S.-based integrator indicated that weakened market conditions let to the retirements, although the majority of the freighters had been sidelined for some time.
The 24 retired freighters join the five Boeing 727-200 aircraft FedEx cut from its fleet in the fourth quarter of fiscal-year 2012, according to the press release. This year, there will be even more capacity cuts, however, with the retirement of 21 B727 aircraft, a measure previously announced.
FedEx said the $134 million charge for the retired aircraft was recorded in the quarter that ended on May 31.
“Along with the decisions to retire these 50 aircraft, we are also developing detailed operating and cost structure plans to further improve our efficiency,” David Bronczek, FedEx Express president and CEO, said in a statement. “We expect to provide additional information on these plans in the fall.”
While FedEx seems to be cutting capacity on its domestic networks, the global integrator is ramping up its overseas operations. In April, FedEx agreed to purchase Polish shipping company Opek Sp.z o.o. for an undisclosed amount and then revealed plans to procure French business-to-business express company Tatex only one month later.
The later acquisition will give FedEx Express access to a domestic ground network that handles 19 million shipments a year and generates approximately €150 million in annual revenue, according to a press release.