FedEx is planning to withdraw over 80 aircraft and buy a smaller number of more modern, fuel efficient models as part of its reorganisation and environmental drive.
It is reported that 10 aircraft will be retired immediately and 70+ more permanently grounding earlier than planned.
FedEx Express president and CEO David Bronczek said:“With the planned acquisition of new aircraft and projected slower economic growth than previously forecast, we are lowering maintenance costs by aggressively parking and retiring aircraft.”
FedEx Express is said to be the world’s biggest air cargo carrier, in terms of tonnes flown and fleet size. It currently has around 660 aircraft in service.
The aircraft set for immediate withdrawal from service are two A310-200, three A310-300 and five MD10-10. The others to be retired soon are more MD10-10, MD10-30s and A310-200.
The retiring of aircraft, engines and parts will lead to an impairment charge of US$100 million recorded in May 2013, while the impact of accelerating the retirement of aircraft will result in additional year-on-year depreciation expense of $74 million in fiscal 2014, the company said.
In its fiscal year 2012, FedEx Express introduced seven more Boeing 777 aircraft, which use 18 percent less fuel and provide greater payload capacity than the MD-11 aircraft they replaced. The company currently has 23 Boeing 777 providing service to 25 cities around the world and is still on track to have 43 777 in service by 2023, as reported last year. Further, FedEx Express expects to introduce the Boeing 767 aircraft into its fleet in Q3 2013.
FedEx plans to source 30 per cent of its jet fuel from alternative sources by 2030. The company is working with The Nature Conservancy to develop the adoption of biofuels for our long-haul segments.