LAXintl
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Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 1:52 am

The continued reshuffling of operations at Fedex continues.

The company is out today with news it will accelerate retirement of 86 aircraft and 308 engines.
As part of this move, the company took a $100mil impairment charge in May with will incur additional $74mil in the coming year.

Immediate retirements:
o 2 A310-200
o 3 A310-300
o 5 MD-10-10

In addition FX wil accelerate the retirement of following aircraft through 2014:
o 16 A310-200
o 47 MD-10-10
o 13 MD-10-30

As previously announced the last 727 operations will be July 1st.


Story:
http://finance.yahoo.com/news/fedex-...ircraft-retirements-201500860.html

=
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AA737-823
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 2:03 am

Sad to see the MD-10's go.
Some of them are so old... tons of miles on those beasts!
 
Okie
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 2:30 am

The comment about slower economic growth than expected is a killer for the MD-10.
Normally you would expect Fedex to at least use up some of its spare parts and engines if growth was there even though the somewhat higher operating cost would be offset by using up spares and not replacing parts stock.
5 MD10-10's and 15 related engines
47 MD10-10's and 172 related engines.

I am assuming the aircraft and engines are considered separate assets, that still relates to 31 spare engines, that seems like a lot.

Okie
 
solarflyer22
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 3:08 am

Wow said to see soo many MD10's retire and no more 727. Iconic planes in the FedEx livery. They must be replacing some with 757s and 777Fs but perhaps a slight decline in overall capacity unless things turn around.
 
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Stitch
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 3:41 am

Quoting solarflyer22 (Reply 3):
They must be replacing some with 757s and 777Fs but perhaps a slight decline in overall capacity unless things turn around.

The 727-200s are being replace with 757-200s and the MD-10s with the 767-300F. HPRamper noted that FX is introducing a new main deck ULD for the 767 and the A306 and A310 are being modified to handle it, as well.
 
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rotating14
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 3:48 am

Quoting okie (Reply 2):
The comment about slower economic growth than expected is a killer for the MD-10.
Normally you would expect Fedex to at least use up some of its spare parts and engines if growth was there even though the somewhat higher operating cost would be offset by using up spares and not replacing parts stock.
5 MD10-10's and 15 related engines
47 MD10-10's and 172 related engines.

When are the 767's coming??
 
PITrules
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 3:57 am

Quoting LAXintl (Thread starter):

The company is out today with news it will accelerate retirement of 86 aircraft and 308 engines.

Yet operational fleet size will remain roughly the same through 2015. From another website:

2013.....275
2014.....272
2015.....274


New airframes include a number of 757s, 767s, a couple 777s, and even one MD-11.
FLYi
 
HPRamper
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 11:46 am

Quoting rotating14 (Reply 5):
When are the 767's coming??

Later this summer.
 
n737aa
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 12:14 pm

Quoting AA737-823 (Reply 1):
Sad to see the MD-10's go.
Some of them are so old... tons of miles on those beasts!

Seems like yesterday they were converting them to the MD10 TC.....but in reality it was almost 10 years ago.

N737AA
 
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jfklganyc
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 12:32 pm

I'm assuming since there are straight replacements, pilots are not getting furloughed?
 
0newair0
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 12:56 pm

Quoting PITrules (Reply 6):
Yet operational fleet size will remain roughly the same through 2015. From another website:

Isn't the fleet currently in the mid 300s?
"The future belongs to those who believe in the beauty of their dreams."
 
na
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 1:04 pm

Quoting LAXintl (Thread starter):
In addition FX wil accelerate the retirement of following aircraft through 2014:
o 16 A310-200
o 47 MD-10-10
o 13 MD-10-30

So all MD10s will be retired by the end of next year? They have lasted very long, longer than many should have expected, so there is no real reason to be sad. Quite a massive rollover as the same number of "new" planes will join the fleet. I think the sole MD11 being added is a plane already aquired some time ago and stored currently. A bit odd, but Fedex sometimes buys secondhand planes and stores them for years before using them.
 
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lightsaber
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 1:07 pm

Quoting PITrules (Reply 6):
Yet operational fleet size will remain roughly the same through 2015. From another website:

So FedEx has moved off of a growth plan. Interesting... That shows what high oil prices do to the economics of older types...

Quoting okie (Reply 2):
that still relates to 31 spare engines, that seems like a lot.

In the 'old days,' more spare engines were required. I suspect that since FedEx already owned the engines (engine with poor resale value) that they simply managed the fleet for lowest cost and that ended up retaining the old engines. In FedEx's case, this allows them to 'level load' the engine shops or even take advantage of 'off season' repairs to minimize costs.

Lightsaber
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na
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 1:10 pm

Quoting LAXintl (Thread starter):
In addition FX wil accelerate the retirement of following aircraft through 2014:
o 16 A310-200
o 47 MD-10-10
o 13 MD-10-30

So all MD10s will be retired by the end of next year? They have lasted very long, longer than many should have expected, so there is no real reason to be sad. Quite a massive rollover as the same number of "new" planes will join the fleet. I think the sole MD11 being added is a plane already aquired some time ago and stored currently. A bit odd, but Fedex sometimes buys secondhand planes and stores them for years before using them.
 
na
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 1:22 pm

Quoting LAXintl (Thread starter):
In addition FX wil accelerate the retirement of following aircraft through 2014:
o 16 A310-200
o 47 MD-10-10
o 13 MD-10-30

So all MD10s will be retired by the end of next year? They have lasted very long, longer than many should have expected, so there is no real reason to be sad. Quite a massive rollover as the same number of "new" planes will join the fleet. I think the sole MD11 being added is a plane already aquired some time ago and stored currently. A bit odd, but Fedex sometimes buys secondhand planes and stores them for years before using them.
 
jfk777
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 1:25 pm

Quoting LAXintl (Thread starter):
Immediate retirements:
o 2 A310-200
o 3 A310-300
o 5 MD-10-10

In addition FX wil accelerate the retirement of following aircraft through 2014:
o 16 A310-200
o 47 MD-10-10
o 13 MD-10-30

Hey the A310's which started of flyign for airlines like Swissair are 30 years old. The MD-10-10 are Dc-10-10 woth MD-11 cockpits are 40 years old. FedEX got their monies worth and then some.
 
Okie
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 1:27 pm

Quoting PITrules (Reply 6):
Yet operational fleet size will remain roughly the same through 2015. From another website:

That was sort of the gist of what I was trying to say which is Fedex is not expecting any major growth in the economy.
The increased capacity of the newer more efficient aircraft assigned to the routes will compensate without adding any additional frames to the inventory.

Makes you wonder if there is a market for the 50+ frames being retired or will they simply be scrapped.

Okie
 
jcded
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 1:27 pm

Any news on what will happen to the FedEx MD-10 maintenance base at LAX?
You breathe to do good and have fun.
 
na
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 1:31 pm

Quoting okie (Reply 16):
Makes you wonder if there is a market for the 50+ frames being retired or will they simply be scrapped.

Are you joking? 40 year old MD10s, 30 year old A310s? No way there will be customers assembling at a time when the first MD11s, 20 years younger than the MD10s, are being scrapped or A310s from the mid-90s.
 
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United_fan
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 1:38 pm

Hopefully we'll continue to see the MD-10-10's in ROC 5x a week for a while !
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bigbird
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 1:41 pm

The 767s are being delivered new from Boeing starting with N101FE in Sep. 2013. They will be numbered in this sequence just like the original 727-100s.
bigbird from georgia
 
bigbird
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 1:45 pm

The 767s are coming from Boeing starting with N101FE in Sep. 2013. They will be numbered in this sequence like the original 727-100s.
bigbird from georgia
 
wrenchon727
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 3:14 pm

Quoting PITrules (Reply 6):

The permanent retirement of the five MD10's & five Airbus are aircraft already parked in VCV. The first 767 is scheduled to arrive in September, with 4 in the fleet by end of the year. Late 2014 (November) the fifth 767 scheduled to arrive with 15 inch displays, the fourth a/c used much of early 2014 as a test a/c for STC approval of Rockwell Collins 15 inch display's & HUD, and then about 1 month in 2015. A majority of the MD10 wont start hitting the desert until 2015 with the last of them going by 2018. With all 727 replaced with 757 in July, the in coming 757 (about 45 yet delivered) will replace the A310's.
 
SpaceshipDC10
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 3:41 pm

Quoting jfk777 (Reply 15):
The MD-10-10 are Dc-10-10 woth MD-11 cockpits are 40 years old. FedEX got their monies worth and then some.

FedEx relationship with the DC-10 started back in March 1980 and it seems that the oldest still active in their fleet is N366FE, delivered as N1803U on June 3, 1972. When United parked it in April 1995, it had logged 61791 hours and 24204 landings. Wonder how many more were logged since its return to service in October 1999.
 
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fxramper
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 7:00 pm

Quoting PITrules (Reply 6):
Yet operational fleet size will remain roughly the same through 2015. From another website:

Exactly. This isn't 'new news'. The 727 fleet being retired has been in the news since forever. The Md-10-10 that weren't converted have been on the chopping block since FX was shopping for a replacement ultimately going with 767F. The Airbus in the mix being let go are leases from GE and older frames. Also to note, out of the immediate retirements, all but one frames have been parked and out of service for some time.
 
Max Q
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RE: Fedex To Retire 86 Aircraft

Tue Jun 04, 2013 8:50 pm

Good for FDX but boring for those of us who like other than twins.
The best contribution to safety is a competent Pilot.
 
3DoorsDown
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RE: Fedex To Retire 86 Aircraft

Wed Jun 05, 2013 12:24 am

When I started at Boeing 28+ years ago, the very first week was when they rolled out the last 727 which of course was delivered to FedEx. The 727 has done the aviation world and Boeing proud.
 
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fxramper
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RE: Fedex To Retire 86 Aircraft

Wed Jun 05, 2013 2:44 am

 
LAXintl
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RE: Fedex To Retire 86 Aircraft

Wed Jun 05, 2013 9:24 am

Quoting lightsaber (Reply 12):
So FedEx has moved off of a growth plan. Interesting... That shows what high oil prices do to the economics of older types...

I think it shows more FX pessimism of its future in regards to cargo volumes then fuel.

Historically cargo volume growth has run slightly ahead of GDP growth. So with even 3% growth globally for the next few years, FX does not see it will share in this growth.
Goes back to the other thread I had about FX seeking to place shipments on other airline capacity than flying its own organic capacity.
From the desert to the sea, to all of Southern California
 
bennett123
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RE: Fedex To Retire 86 Aircraft

Wed Jun 05, 2013 10:44 am

Are these to be left in the desert, or will they be scrapped straight away?.
 
HPRamper
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RE: Fedex To Retire 86 Aircraft

Wed Jun 05, 2013 9:52 pm

Quoting na (Reply 11):
So all MD10s will be retired by the end of next year? They have lasted very long, longer than many should have expected, so there is no real reason to be sad.

No way. The MD10 retirements are being sped up, but they still have years left in them. The MD11 will be around longer though.

Quoting LAXintl (Reply 28):
I think it shows more FX pessimism of its future in regards to cargo volumes then fuel.

I think it's a little of both. But even as freight volumes rebound, priority is not recovering at a rate comparable to economy. FX planes are not carrying 4-5 day freight. But even if express freight does rebound, smaller planes (757 vs A310, 767 vs MD10) would still suffice with proper fleet utilization and the company will save a boatload of money on fuel and maintenance costs.
 
SpaceshipDC10
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RE: Fedex To Retire 86 Aircraft

Wed Jun 05, 2013 10:05 pm

Quoting HPRamper (Reply 30):
No way. The MD10 retirements are being sped up, but they still have years left in them.

However, in today's conditions, especially regarding fuel, is there a market for second hand trijets like the MD-10-10Fs ?
 
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Stitch
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RE: Fedex To Retire 86 Aircraft

Wed Jun 05, 2013 10:12 pm

Quoting SpaceshipDC10 (Reply 31):
However, in today's conditions, especially regarding fuel, is there a market for second hand trijets like the MD-10-10Fs ?


Perhaps with charter companies who do "power by the hour" rentals for urgent lift needs.
 
NWAROOSTER
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RE: Fedex To Retire 86 Aircraft

Wed Jun 05, 2013 10:14 pm

FedEx and UPS are now competing more with containers that can be shipped across the Pacific to Long Beach, California in about ten days and shipped to their inland destinations by rail at a much more lower cost. The reliability of container ships has improved dramatically. Because of this FedEx is going to have to bit the bullet.
Unless the item is need immediately, it wil go by sea.   
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HPRamper
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RE: Fedex To Retire 86 Aircraft

Wed Jun 05, 2013 11:05 pm

Quoting SpaceshipDC10 (Reply 31):
However, in today's conditions, especially regarding fuel, is there a market for second hand trijets like the MD-10-10Fs ?

I doubt it. After FX gets their use out of them, they will probably be scrap bait. They are too big to even be donated for the same purposes as the 727s were.

Quoting NWAROOSTER (Reply 33):
Unless the item is need immediately, it wil go by sea

FX has always targeted the "immediate need" market...except the customer view of immediate is a lot narrower these days.
 
fuelfool
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RE: Fedex To Retire 86 Aircraft

Thu Jun 06, 2013 12:05 am

Quoting LAXintl (Thread starter):
In addition FX wil accelerate the retirement of following aircraft through 2014:
o 16 A310-200
o 47 MD-10-10
o 13 MD-10-30

Am I reading this wrong? These planes will be parked by the end of 2014?
I love the smell of jet fuel in the morning...Smells like victory!
 
HPRamper
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RE: Fedex To Retire 86 Aircraft

Thu Jun 06, 2013 2:53 am

Quoting fuelfool (Reply 35):
Am I reading this wrong? These planes will be parked by the end of 2014?

The article didn't really say that - it said the retirements were being sped up by several years, which could mean basically anything. FX would not be able to replace the capacity of losing the entire MD10 fleet over the next year and a half. I expect FX will be retiring the oldest/next due for heavy checks first, and then replacing 1-for-1 with the 767F when possible.
 
Max Q
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RE: Fedex To Retire 86 Aircraft

Thu Jun 06, 2013 4:31 am

Quoting wrenchon727 (Reply 22):
he fifth 767 scheduled to arrive with 15 inch displays, the fourth a/c used much of early 2014 as a test a/c for STC approval of Rockwell Collins 15 inch display's & HUD,

Very interesting, do you have a picture of this ?
The best contribution to safety is a competent Pilot.
 
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7BOEING7
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RE: Fedex To Retire 86 Aircraft

Thu Jun 06, 2013 3:36 pm

Quoting Max Q (Reply 37):
Very interesting, do you have a picture of this ?
http://www.ainonline.com/sites/ainon...om/files/uploads/KC-46_cockpit.jpg