FedEx takes axe to 15 freighters
02 / 06 / 2015
US parcels and logistics giant FedEx has "permanently retired" 15 aircraft and 21 related engines as it continues to “rationalise capacity and modernise its aircraft fleet to more effectively serve FedEx Express customers”.
FedEx has taken a non-cash impairment charge of $246m recorded in May 2015 and has also adjusted the retirement schedule of an additional 23 airframes and 57 engines, with an associated $30m in cash charges.
In April this year, FedEx made a $4.8bn bid to acquire rival operator TNT Express of the Netherlands, with both sides reaching a conditional agreement on the deal, which is expected to receive regulatory approval in early 2016.
FedEx in a short statement on its investors website said: “These combined retirement changes will not have a material impact on near-term depreciation expense."
The permanent retirement of FedEx aircraft and related engines includes: seven MD11 airframes and 12 related engines; three A300 airframes and three related engines; four A310-300 airframes and three related engines; and one MD10-10 airframe and three related engines.
As of February this year, FedEx fleet totalled 673 aircraft, including 383 jet aircraft.
During the four quarters ended February, 2015, FedEx spent $3.15bn on 1.14bn gallons of jet fuel.
“The B767 provides similar capacity as the MD10, with improved reliability, an approximate 30% increase in fuel efficiency and a minimum of a 20% reduction in unit operating costs,” said FedEx.
