FedEx pulls 14 aircraft from service

FedEx Corp is pulling capacity as the ongoing downturn hits its global express business, with the US-based carrier announcing in a notice to the Securities and Exchange Commission earlier this week that it will remove 10 Airbus A310-200s, four Boeing MD10-10s from service between now and the end of the quarter ending May 31. “This […]


capacity reduction express FedEx recession


FedEx Corp is pulling capacity as the ongoing downturn hits its global express business, with the US-based carrier announcing in a notice to the Securities and Exchange Commission earlier this week that it will remove 10 Airbus A310-200s, four Boeing MD10-10s from service between now and the end of the quarter ending May 31. “This decision reflects management’s ongoing efforts to optimise the company’s express network in light of continued excess aircraft capacity due to weak economic conditions and the expected delivery of newer, more fuel-efficient aircraft in fiscal year 2010,” the filing stated. Both aircraft types are slated to be replaced as part of FedEx’s fleet renewal plan that will see more economical Boeing 757s and 777s joining the fleet. The US express giant also said a number of other aircraft is grounded due to flagging demand. “A limited amount of the company’s total aircraft capacity remains temporarily grounded because of network over capacity,” it said. The company has also slashed 1,000 jobs, including 500 from its Memphis hub, from 3 April.