Category Archives: FedEx Express

FedEx gets ready to put its first Boeing 767-300 freighter into revenue service

FedEx Express (Memphis), an operating company of FedEx Corporation (Memphis), yesterday introduced its new Boeing 767-300 cargo jet scheduled to begin service this fall. The aircraft is the first of several new 767-300 freighters being added to the FedEx fleet, and represents a major step in the company’s strategically important aircraft fleet modernization program. The 767-300 joins 777s and 757s in the company’s growing fleet of more efficient, lower-emission freighters.

The aircraft was center stage at an event attended by FedEx team members and special guests at the company’s World Hub in Memphis.

The initial 767 was delivered to FedEx from Boeing last month and is undergoing the certification process required to begin service. It is among 50 767s FedEx has ordered, which are scheduled to be delivered through the end of the company’s fiscal year 2019.

With a maximum gross payload capacity of 127,100 pounds, the medium wide-body 767 Freighter has a flight range of 2,922 nautical miles (3,362 statute miles).

The 767 brings FedEx an array of double-digit efficiencies. The freighter is approximately 30 percent more fuel efficient and has unit operating costs that are more than 20 percent lower than the MD10 aircraft it will replace. The ability to share parts, tooling and flight simulators with FedEx 757 freighters is another efficiency of the 767.

Across its aircraft fleet, FedEx projects a 30 percent reduction in its unit carbon emissions by the year 2020. In addition, the company has reaffirmed its commitment to sourcing at least 30 percent of its jet fuel from alternative fuels by the year 2030.

With the 767 freighter, FedEx is also introducing a new “efficient container” or Unit Load Device used to hold individual packages on the aircraft. The FedEx Efficient Container is lighter and its construction includes more recycled materials.

Under its aircraft fleet modernization program, FedEx began upgrading its fleet in 2007 with the addition of 757 freighters to replace 727s. The final 727 in the FedEx fleet was retired in June.

In 2009, the company introduced the 777, the world’s largest twin-engine cargo freighter with a non-stop flight range of 5,800 nautical miles (6,675 statute miles) and a cargo capacity of 178,000 pounds in typical FedEx service.

Copyright Photo: Duncan Kirk/AirlinersGallery.com. Boeing 767-3S2F ER N101FE (msn 42706) taxies at Paine Field near Everett. N101FE was delivered to FedEx on September 4, 2013.

FedEx:

FedEx Corporation reports net income of $489 million in the fiscal 1Q, up 7%

FedEx Corporation (FedEx Express) (Memphis) reported earnings of $1.53 per diluted share for the first quarter ended August 31, compared to $1.45 per share last year.

“Growth in overall demand for our broad global portfolio of solutions drove our improved first quarter results,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “FedEx Express remains focused on reducing costs while facing challenging global economic conditions. Meanwhile, FedEx Ground continues to generate strong profitability on growing customer demand for its services.”

First Quarter Results

FedEx Corp. reported the following consolidated results for the first quarter:

• Revenue of $11.0 billion, up 2% from $10.8 billion the previous year

• Operating income of $795 million, up 7% from $742 million last year

• Operating margin of 7.2%, up from 6.9% the previous year

• Net income of $489 million, up 7% from last year’s $459 million

Revenue and earnings increased during the quarter, driven by solid performance at each of the company’s transportation segments. Results include significant headwinds from the net year-over-year impact from the timing lag that exists between when fuel prices change and indexed fuel surcharges automatically adjust, as well as one fewer operating day.

Outlook

FedEx reaffirmed its forecast of full-year earnings per share growth of 7% to 13% from last year’s adjusted results. This outlook assumes the market outlook for fuel prices, U.S. GDP growth of 2.1% and world GDP growth of 2.6%. The capital spending forecast for fiscal 2014 remains $4 billion.

“We remain confident in our full year earnings outlook despite tepid global economic growth,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “FedEx Express continued to execute on its profit improvement initiatives during our first quarter. We remain focused and are committed to FedEx Express achieving its $1.6 billion operating profit improvement target by the end of fiscal 2016.”

2014 Rate Increases

FedEx Express will increase shipping rates by an average of 3.9% for U.S. domestic, U.S. export and U.S. import services effective January 6, 2014. The FedEx Ground and FedEx SmartPost pricing changes for 2014 will be announced later this year. FedEx Freight implemented a 4.5% general rate increase on July 1, 2013.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-FS2 N852FD (msn 37723) approaches Anchorage International Airport for landing.

FedEx Express:

FedEx Express takes delivery of its first Boeing 767-300F freighter

Boeing (Chicago) and FedEx Express (Memphis), an operating company of FedEx Corp. (Memphis), yesterday (September 4) celebrated the delivery of the company’s first 767-300 freighter. The delivery supports the FedEx strategy to modernize its fleet with more efficient freighters.

The 767 Freighter is an ideal upgrade for the fleet serving the FedEx Express domestic network, providing improved fuel, maintenance and cost savings over the MD-10 freighters it will replace. FedEx Express gains additional efficiency through the ability to share parts, tooling and flight simulators between the 767 and the more than 70 757 freighters already in its fleet.

The 767 freighter is based on the popular 767-300 ER (extended range) passenger airplane. Able to carry approximately 58 tons (52.7 tons) of revenue cargo with intercontinental range, the 767 Freighter is ideal for developing new long-haul, regional or feeder markets.

The airplane joins other Boeing freighters in the FedEx fleet such as the MD-10, MD-11, 757 and the 777.

Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 767-3S2F N101FE (msn 42706) is pictured at Paine Field near Everett, WA on a test flight prior to the official hand over.

FedEx Express:

FedEx Pilots’ Union: Report on UPS Boeing 747 crash highlights the need for new regulations on the carriage of Lithium Batteries

The FedEx Express Pilots Union (FedEx Express) (Memphis) has issued this statement reference the release of the Accident Report on the UPS Airlines (Atlanta and Louisville) Boeing 747-400F freighter crash at Dubai (please see our previous report). At the heart of the issue, are lithium batteries safe on any airplane?:

On September 3, 2010, our industry lost two fellow aviators when UPS Flight 6 crashed near Dubai, United Arab Emirates (UAE). The UAE General Civil Aviation Authority (GCAA) released its final report concerning the investigation into this fatal crash. The GCAA, while not pinpointing the origin of the fateful blaze, determined that the ensuing fire was promulgated by lithium batteries and found that smoke-detection equipment took too long to alert the crew.

The report provides recommendations specific to air cargo fire safety. The FedEx Master Executive Council (MEC) joins Air Line Pilots Association (ALPA), Int’l in praising the GCAA for its thorough report. The report makes unmistakably clear the dangers of carrying large quantities of lithium batteries. “As cargo pilots, we are fully aware of the potential dangers associated with the carriage of lithium batteries,” said MEC chairman Captain Scott Stratton. “These pilots’ lives were tragically cut short as they valiantly tried to bring their crippled aircraft back to the ground. Through their actions, they were able to prevent a much larger disaster from occurring. We owe it to them as well as to all of those who fly this nation’s commerce every day, to ensure that regulatory directives are harmonized across the globe and robust enough to preclude future events such as this.”

The GCAA recommended that the Federal Aviation Administration (FAA) and its European counterpart develop better firefighting standards and equipment for cargo planes, with visual warnings about where a fire is located. The FedEx MEC strongly believes that the United States must take a leadership role in protecting aircraft against the possibility of catastrophic fires caused by lithium batteries. The improvement in regulations covering the transportation of large quantities of lithium batteries must proceed immediately in order to begin to eliminate this deadly hazard. “Now is the time for the U.S. government to act to ensure the safety of our skies,” said FedEx Legislative Affairs chairman Captain Fred Eissler. “We will continue to work with our government leaders, dangerous goods regulatory authorities, and our fellow airline pilots to address the safety issues and concerns found in the GCAA report.”

“The FedEx pilots are committed to working with industry and government leaders to minimize the risks associated with the carriage of dangerous goods,” continued Captain Stratton. “The GCAA’s report adds to the building body of evidence that clearly shows much more effort is needed to facilitate negating the risks associated with the carriage of lithium batteries.”

Copyright Photo: Duncan Kirk/AirlinersGallery.com. The first Boeing 767-300F for FedEx Express is being prepared for its first flight at Paine Field near Everett, WA. 767-3S2F N101FE (msn 42706) taxied to the runway yesterday afternoon.

FedEx Express:

The End of an Era: FedEx Express retires the last Boeing 727 today after 35 years

FedEx Express (Memphis) has replaced and will retire the last Boeing 727 (N481FE) at Memphis today.

The company has just issued this statement:

For 35 years, Boeing 727 aircraft were a reliable workhorse for the world’s largest express transportation company. Today, the venerable 727 narrow-body freighter closes an enduring chapter in aviation history as FedEx becomes the last major carrier to retire the aircraft from service. The retirement is part of the company’s aircraft modernization strategy.

The 727’s domestic mission will conclude at 1:30 p.m. CDT as FedEx aircraft N481FE touches down at the FedEx Express World Hub at Memphis International Airport. Greeting its arrival will be more than 1,000 company executives, air operations team members and other guests who will mark the airplane’s historic last flight with a special ceremony.

A departure ceremony at the FedEx hub in Indianapolis, which has served as the company’s primary base for 727 general maintenance checks, begins the historic farewell flight.

“For more than three decades, our Boeing 727 fleet was instrumental in our company’s domestic growth,” said David J. Bronczek, president and chief executive officer, FedEx Express. “Today, we are opening a new chapter for company growth and opportunity as we continue to modernize our global fleet with more technologically advanced, fuel efficient, lower emission cargo jets.”

History of the 727 at FedEx

Introduction of this larger, mid-size jet freighter to the FedEx fleet was made possible by deregulation of the airline industry in 1977, giving the upstart express carrier access to more domestic markets and bringing immediate operational efficiencies because of greater payload capabilities. FedEx operated only small Dassault Falcons before the industry was deregulated. An exemption then allowed a company to enter the common carrier business if its payloads were less than 7,500 pounds.

It was January 14, 1978 when then-Federal Express took delivery in Memphis of its first 727 aircraft, which was purchased from Eastern Airlines. On that day, Frederick W. Smith, chairman, president and chief executive officer, FedEx Corporation, told several hundred employees and guests at the delivery event, “Many people look at this airplane and believe that Federal Express has arrived at the end of a long road. This is not the end of anything. It is simply the beginning.”

Early FedEx acquisitions of used 727s from other carriers were followed by new aircraft purchases from Boeing, with the last 727 leaving the manufacturer’s assembly line and being delivered to FedEx in 1984. The express carrier at one point was the world’s largest operator of 727s, with 170 of the aircraft in its fleet at any one time.

Modernization of the FedEx Fleet

FedEx began retiring its 727-200 fleet in 2007 and replacing them with more modern Boeing 757 airplanes. The retirement cycle accelerated under the fleet modernization program that through the last several years included more 757 freighters, as well as new Boeing 777 long-range freighters, which are the biggest in the FedEx fleet and the world’s largest twin-engine cargo aircraft. This fall, FedEx begins taking delivery of new Boeing 767 aircraft to replace its aging MD-10 freighters.

As with the other aircraft types being introduced, the 767s will provide significantly improved reliability and are substantially more fuel-efficient and environmentally friendly than the aircraft they will replace. FedEx is committed to reducing its aircraft carbon emissions 30 percent by the year 2020 under its fleet modernization program. It expects to source at least 30 percent of its jet fuel from alternative fuels by the year 2030.

“As we celebrate our company’s 40^th anniversary, we can look back at an aircraft bloodline that has been impressive,” Bronczek said. “From the small Falcons, which served us well when the company was young, to our 727s, to what is now the largest fleet of express cargo aircraft in the world, our transportation capabilities for global customers is unmatched in the industry. Equally impressive are the innovation, technology and environmental benefits of the new aircraft we are adding.”

Continuation of Service

Not only are FedEx 727s being retired, but nearly half of the fleet has been donated coast-to-coast to aviation schools, colleges and local communities in the last several years.

From Anchorage to Austin, from Billings to Buffalo, from Sioux City to Shreveport and many points between, FedEx aircraft donations support school curriculums that are developing the next generation of aviation professionals. The donated aircraft are also being used for training by emergency response teams at local airports and fire departments.

For FedEx pilots like Capt. Chip Groner, who piloted a 727 for about 10 years, closing the door on 727 operations is a turning point not only for FedEx but for the aviation industry.

“The 727 was a mainstay aircraft and one of the most dependable we ever had in our fleet. More importantly, it was the plane that really put FedEx on the map as an overnight express carrier,” the 35-year FedEx crew member said. “It’s the end of an era, but it’s only natural because of changing technology that improves the fuel and operational efficiencies of today’s new aircraft. The 727, for many pilots, will always be the airplane that really brought the airline industry into the jet age.”

Copyright Photo: Bruce Drum/AirlinersGallery.com. Still wearing its Eastern Airlines registration, the pictured Boeing 727-25C N8161G (msn 19717) in the original 1973 Federal Express livery, later became N125FE with FedEx.

FedEx Express:

Video: The MEM Airport water saluted the last FedEx 727 arrival, operated by ex-Braniff Boeing 727-227 (F) N481FE (msn 21463).

Video: This FedEx Boeing 727 was donated to the University of Alaska’s Aviation Department. It is pictured landing for the last time at Merrill Field’s runway 25 in downtown Anchorage.

FedEx Corporation reports net income of $679 million in the fiscal 4Q and $1.98 billion for the year

FedEx Corporation (FedEx Express) (Memphis) reported earnings of $2.13 per diluted share for the fourth quarter ended May 31. This excludes a $0.98 per diluted share business realignment program charge and a previously announced $0.20 per diluted share noncash aircraft impairment charge at FedEx Express. Including these charges, fourth quarter earnings were $0.95 per diluted share.

Last year’s fourth quarter earnings were $1.99 per diluted share, excluding a $0.26 per diluted share noncash aircraft impairment charge at FedEx Express. Including last year’s charge, earnings were $1.73 per diluted share.

“FedEx Ground posted another strong year and FedEx Freight margins continued to improve,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “These positive developments did not fully offset tepid economic growth and customer preference for less costly international shipping services. FedEx Express results improved in the fourth quarter, and while near-term challenges remain, we are confident we are positioning FedEx for profitable, long-term growth.”

Fourth Quarter Results

FedEx Corp. reported the following consolidated results for the fourth quarter:

	Fiscal 2013		Fiscal 2012
	Adjusted (non-GAAP)	As Reported (GAAP)	Adjusted (non-GAAP)	As Reported (GAAP)
Revenue	$11.4 billion	$11.4 billion	$11.0 billion	$11.0 billion
Operating Income	$1.10 billion	$502 million	$990 million	$856 million
Operating Margin	9.6%	4.4%	9.0%	7.8%
Net Income	$679 million	$303 million	$634 million	$550 million
Diluted EPS	$2.13	$0.95	$1.99	$1.73

As announced on June 3, during the quarter FedEx Express permanently retired 10 aircraft and related engines. As a consequence, a noncash impairment charge of $100 million ($63 million, net of tax, or $0.20 per diluted share) was recorded in the fourth quarter.

Excluding business realignment program costs and aircraft impairment charges from this year and aircraft impairment charges from last year, “adjusted” operating results improved due to continued strong FedEx Ground performance and better FedEx Express performance.

Full Year Results

FedEx Corp. reported the following consolidated results for the full year:

	Fiscal 2013		Fiscal 2012
	Adjusted (non-GAAP)	As Reported (GAAP)	Adjusted (non-GAAP)	As Reported (GAAP)
Revenue	$44.3 billion	$44.3 billion	$42.7 billion	$42.7 billion
Operating Income	$3.21 billion	$2.55 billion	$3.28 billion	$3.19 billion
Operating Margin	7.3%	5.8%	7.7%	7.5%
Net Income	$1.98 billion	$1.56 billion	$2.09 billion	$2.03 billion
Diluted EPS	$6.23	$4.91	$6.59	$6.41

Capital spending for fiscal 2013 was $3.4 billion, down from $4.0 billion in fiscal 2012.

Business Realignment Program Update

In October, the company announced profit improvement programs, which include a voluntary employee separation program. The program was completed during the fourth quarter, and approximately 3,600 employees will be voluntarily leaving the company in phases to ensure a smooth transition. Approximately 40% of the employees vacated their positions on May 31, 2013 in the first phase. Approximately 25% of the employees will vacate their positions in the final phase at the end of fiscal 2014.

The company incurred costs of $496 million ($313 million, net of tax, or $0.98 per diluted share) during the fourth quarter and $560 million ($353 million, net of tax, or $1.11 per diluted share) during fiscal 2013, associated with the business realignment activities. The cost of the voluntary employee separation program is included in the “Business realignment, impairment and other charges” line of the company’s statements of income. Business realignment program costs at FedEx Services have been allocated to the operating segments through the “Intercompany charges” line of each segment’s statement of income.

Outlook

FedEx is revising its earnings guidance practices to focus on full fiscal year projections with quarterly updates. For fiscal 2014, the company projects earnings per share growth of 7% to 13% from fiscal 2013 adjusted results. This assumes the current market outlook for fuel prices, U.S. GDP growth of 2.3% and world GDP growth of 2.7%. Capital spending for fiscal 2014 is expected to be approximately $4 billion.

“We remain focused on improving margins and returns in all of our businesses. The pace of that improvement is expected to be moderate in fiscal 2014 and then accelerate in fiscal 2015,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “Our profit improvement program is progressing, but we continue to see the effects of customers selecting lower-rate international services. FedEx Express will further decrease capacity between Asia and the United States in July.”

FedEx Express Segment

For the fourth quarter, the FedEx Express segment reported:

Revenue of $6.98 billion, up 3% from last year’s $6.80 billion
Adjusted operating income of $460 million, up 11% from $415 million a year ago. Including charges, operating income of $0, down from $281 million last year.
Adjusted operating margin of 6.6%, up from 6.1% the previous year. Including charges, operating margin of 0.0%, down from 4.1% last year.

Adjusted operating income and margin improved despite the demand shift toward lower yielding international services, as the net impact of the fuel surcharge timing lag, capacity reductions and other cost reduction activities benefited the quarter’s results. Direct and intercompany costs associated with the business realignment programs and the aircraft impairment charge impacted operating income and margin by $460 million and 6.6 percentage points, respectively. Last year’s results included a $134 million aircraft impairment charge.

Revenue increased due to this year’s business acquisitions and growth at FedEx Trade Networks. U.S. domestic average daily package volume increased 2% and U.S. domestic revenue per package increased 1%, as higher rate per pound and weight per package were offset by lower fuel surcharges. FedEx International Economy volume grew 11%, while FedEx International Priority volume decreased 2% during the quarter. International export revenue per package fell 2% due primarily to lower rates.

FedEx Express is pleased to have been selected as the sole awardee of the recent U.S. Postal Service air cargo solicitation, representing the majority of the USPS’s air line-haul traffic. This new seven year agreement, valued at approximately $10.5 billion, begins on October 1, 2013. The agreement provides reduced rates for the USPS versus the prior FedEx Express agreement and offers the opportunity for incremental revenue.

In other news, FedEx Corporation also announced that it has completed the first stage of a strategic acquisition by signing agreements to acquire the businesses operated by its current service provider Supaswift (Pty) Ltd. in five countries in Southern Africa, including South Africa, Malawi, Mozambique, Swaziland and Zambia, and is also in discussions to acquire Supaswift’s businesses in Botswana and Namibia. These acquisitions will operate under the FedEx Express business unit and the transaction is subject to necessary regulatory approvals and customary closing conditions.

Once the acquisition is completed, FedEx Express will have direct access across the seven markets to 39 facilities and will welcome approximately 1,000 of Supaswift’s team members, who will join the ranks of more than 300,000 FedEx team members globally. FedEx Express will then offer a complete suite of FedEx branded export, import and domestic solutions, connecting Southern Africa to more than 220 countries and territories worldwide, enhancing customers’ business flexibility and speed to market.

Copyright Photo: Ken Petersen/AirlinersGallery.com. FedEx has been building up a large Boeing 757 fleet to replace its older Boeing 727s. Formerly operated by Britannia Airways/Thomsonfly/Thomson Airways as G-BYAS, 757-204 (F) N925FD (msn 27238) departs from the Memphis sorting hub.

FedEx Express:

FedEx accelerates the retirement of 86 aircraft, the last Boeing 727 to be retired on July 1

FedEx Corporation (FedEx Express) (Memphis) announced today it had permanently retired or will accelerate the retirement of 86 aircraft and 308 related engines as it continues to modernize its aircraft fleet and improve the global network of FedEx Express.

The permanent retirement of aircraft and related engines announced today includes:

Two Airbus A310-200 aircraft and four related engines;
Three Airbus A310-300 aircraft and two related engines; and
Five McDonnell Douglas MD-10-10 aircraft and 15 related engines.

The impact of retiring these aircraft, engines and parts resulted in an impairment charge of $100 million recorded in May 2013.

In addition, FedEx will accelerate by several years the retirement of:

47 McDonnell MD-10-10 aircraft and 172 related engines;
13 McDonnell MD-10-30 aircraft and 55 related engines; and
16 Airbus A310-200 aircraft and 60 related engines.

As of July 1, 2013, FedEx Express will complete the final retirement of the Boeing 727-200 fleet.

“We are modernizing our aircraft fleet by retiring older, less-efficient, and less-reliable aircraft and replacing them with modern aircraft to build a fleet with higher reliability and better cost efficiency,” said David J. Bronczek, president and chief executive officer of FedEx Express. “With the planned acquisition of new aircraft and projected slower economic growth than previously forecast, FedEx Express is lowering maintenance costs by aggressively parking and retiring aircraft.”

The impact of accelerating the retirement of aircraft will result in additional year-over-year depreciation expense of $74 million in FY14.

FedEx Express Aircraft Fleet Facts

As of February 28, 2013, FedEx Express’s fleet totaled 660 aircraft, including 368 jet aircraft.
During the four quarters ended on February 28, 2013, FedEx Express spent $3.8 billion on 1.2 billion gallons of jet fuel.
The Boeing 757-200 is significantly more fuel efficient per pound of payload and has 20% additional payload capacity than the Boeing 727 it replaces.
The Boeing 767 will provide similar capacity as the MD-10s, with improved reliability, an approximate 30% increase in fuel efficiency and a minimum of a 20% reduction in unit operating costs.
The Boeing 767 shares spare parts, tooling and flight simulators with the B757.

Dividend Declaration

The Board of Directors today declared a quarterly cash dividend of $0.15 per share on FedEx Corporation common stock, an increase of $0.01 per share over the previous dividend payment. The dividend is payable on July 1, 2013 to stockholders of record at the close of business on June 17, 2013. FedEx remains committed to paying higher dividends to shareowners in years to come.

Copyright Photo: Bruce Drum/AirlinersGallery.com. The pictured Boeing 727-233 (F) N221FE (msn 20932) was originally delivered as a passenger aircraft to Air Canada as C-GAAA on September 25, 1974.

FedEx:

FedEx renews its contract with the United States Postal Service

FedEx Corporation (Memphis) has announced that its FedEx Express (Memphis) subsidiary has entered into a new express air transportation contract with the United States Postal Service. The current contract ends in September 2013, and the new contract will begin in October 2013.

Under this seven-year agreement, valued at approximately $10.5 billion, FedEx Express will provide airport-to-airport transportation of USPS Express Mail and Priority Mail within the United States.

Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 777-FS2 N884FD (msn 37137) gracefully climbs away from the Boeing factory at Paine Field near Everett, Washington.

FedEx Express:

FedEx Express makes a historic Panda delivery to the Toronto Zoo

FedEx Express (Memphis) has safely delivered two giant pandas from China to the Toronto Zoo following months of preparations and public anticipation.

The giant pandas, breeding pair Er Shun (female) and Da Mao (male), made the journey from Chengdu, China, to the FedEx Express Canadian Hub at Toronto Pearson International Airport, aboard a specially branded MD-11 aircraft donated by FedEx.

The pandas arrived at 10:47 a.m. EDT (March 25) after an 18 hour flight. FedEx Express, the Toronto Zoo, and the Chengdu Research Base of Giant Panda Breeding collaborated extensively to ensure all necessary precautions were taken to provide a safe and comfortable flight for the pandas. Animal care experts were granted special flight privileges to accompany the pandas onboard the aircraft.

Prime Minister Stephen Harper was airside to officially sign for Canada’s receipt of the giant pandas on a FedEx PowerPad handed to him by Lisa Lisson, president of FedEx Express Canada.

“Today is significant for Canadians as it marks an important symbol of trade and diplomacy between our country and China. As the world’s global transportation leader, FedEx understands first-hand the opportunity and potential that comes with strengthened relationships and improved global connectivity—all of which is wrapped into the symbolism of today’s delivery,” said Lisa Lisson, president, FedEx Express Canada. “As excited as we are about facilitating this exchange between Canada and China, I can attest that all our 6,000-strong team of employees, from coast-to-coast, are as eagerly excited about the prospects of a giant panda cub being born on Canadian soil.”

Following the arrival of FedEx Panda Express, Er Shun and Da Mao were transported by two FedEx Express trucks to Toronto Zoo where they will begin a five-year stay before transferring to Calgary. The specially-branded FedEx Express trucks will stay in service throughout the giant pandas’ stay in Toronto, delivering 600 to 900 kilograms of fresh bamboo supplies two-to-three times a week, courtesy of the Memphis Zoo.

As announced by Prime Minister Stephen Harper on February 11, 2012, the cooperative conservation agreement with China marked the first time in more than twenty years that a giant panda has been loaned to a Canadian zoo. The agreement also marked the first time the Chinese government has granted a ten-year loan of breeding giant pandas to any international zoo in the world.

Following a brief but mandatory quarantine, the giant pandas will be on view to the public at a newly-constructed, state-of-the-art giant panda exhibit at the Toronto Zoo sometime in mid-May (exact date to determined). The program will allow the Toronto Zoo to contribute to ongoing international efforts to protect and increase the population of the endangered giant pandas through investments in research and conservation efforts. Currently, conservationists estimate that there are just over 2,000 giant pandas left in the wild.

“We are honoured to have giant pandas, Er Shun and Da Mao, arrive at the Toronto Zoo and look forward to the opportunity of contributing to the survival of this beautiful species for generations to come,” said John Tracogna, CEO, Toronto Zoo. “The Toronto Zoo is thrilled to join the small group of countries and highly respected zoo organizations outside of China that have the conservation and research programs, professional expertise, and facilities to provide excellent care for a breeding pair of pandas.”

FedEx Express has successfully transported a number of giant panda pairs, underscoring the company’s commitment to safely and securely transporting even the world’s most precious cargo:

China to Paris, France (2012)
China to Edinburgh, Scotland (2011)
Washington, D.C., and Atlanta, USA, to China (2010)
China to Memphis, USA (2003)
China to Washington, D.C., USA (2000)

Copyright Photo: FedEx Express. McDonnell Douglas MD-11F N585FE (msn 48481) had the honor for this historic Panda flight. N585FE touches down at Toronto (Pearson) with the special Panda markings.

FedEx Express:

FedEx Express to acquire 14 Boeing 757-200s from United Airlines

FedEx Express (Memphis) has agreed to acquire 15 Boeing 757-200s from United Airlines (Chicago) and convert the passenger aircraft to freighters according to this report by Bloomberg. FedEx also secured options for another 16 757-200s. Deliveries will be 2013 through 2015.

Read the full report: CLICK HERE

Copyright Photo: Brian McDonough. Former USAir/US Airways Boeing 757-2B7 (F) N901FD (msn 27122, ex N610AU) now with FedEx as a freighter, completes its final approach into Washington (Dulles).

Editor’s “To The Point” Observation: FedEx currently operates 67 Boeing 757-200 converted freighters. The first (the pictured N901FD) was added to the cargo fleet on May 9, 2008. The newer 757s have been replacing the older Boeing 727s. FedEx has 30 727-200Fs still in service so it is likely it will take the full option.