FedEx cuts fleet by 14

FEDEX is to scrap 14 of its aircraft in the face of continuing decline in demand. Ten A310-200s and four MD10-10s will be removed from service by 31 May. They will be replaced

“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,” said the company in a filing to the Securities and Exchange Commission.

FedEx has reported earnings for the third fiscal quarter to be down by 75 per cent compared to last year. Net income was US$93 million against £393 million for the same period.

To counter this FedEx says has announced cost-cutting plans to save $1 billion in fiscal 2010.

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