Tag Archives: FedEx Express

FedEx Corporation completes the acquisition of French express transportation company, TATEX

FedEx Corporation (FedEx Express) (Memphis) announced today that it has completed the acquisition of TATEX, a leading French business-to-business express transportation company. This transaction represents the latest step in the company’s strategy to sustainably grow in Europe.

The addition of the TATEX business to the FedEx network will deliver an excellent extension to the service portfolio of both companies and will provide customers with more comprehensive international and domestic service options. The acquisition will give FedEx access to a nationwide domestic ground network which carries 19 million shipments and produces approximately EUR 150 million in revenues annually. In return, TATEX customers will gain direct access to the global FedEx network.

FedEx has been steadily broadening its European network and today’s announcement follows the recent acquisition of Opek, a Polish courier company with 1,200 employees and a network of 44 stations. In fiscal year 2012, FedEx opened 38 new stations across Europe, launched five Boeing 757-200 freighter flights on intra-European routes, and another Boeing 777F freighter (pictured) for long-haul routes—bringing the total number of Boeing 777Fs operating FedEx routes in and out of Europe to four.

FedEx entered the French market in 1985. Since then the company has been continuously expanding its range of international shipping services in the market and today employs over 3,000 team members in the country. In 2009, the company expanded its EMEA hub at Paris’ Roissy Charles de Gaulle airport, making it the biggest FedEx Express hub outside the U.S.

Copyright Photo: Nick Dean. The pictured brand new Boeing 777-FS2 N864FD (msn 37735) at Everett (Payne Field) joined the FedEx fleet on May 15, 2012.

FedEx Express:

FedEx Express plans to acquire 19 additional Boeing 767-300F freighters and convert four 777 freighters

FedEx Express, a wholly owned subsidiary of FedEx Corporation (Memphis), today (June 29) agreed to purchase 19 additional Boeing 767-300F freighters from The Boeing Company to continue to improve the efficiency and technology of the FedEx air fleet.

As part of the agreement, Boeing has agreed to convert four Boeing 777 freighters — two in fiscal 2016 and two in fiscal 2017 — to 767 equivalent purchase value. FedEx Express currently operates 19 long-range 777 freighters and now is committed to purchase an additional 24 777s.

The 19 767s will be delivered from fiscal 2015 to 2019 and replace current McDonnell Douglas MD-10Fs and A310-200 freighters. The impact to capital spending in fiscal 2013 and fiscal 2014 is immaterial, and estimated fiscal 2013 capital spending remains at $3.9 billion. The 767s are substantially more fuel efficient and reliable than the aircraft they will replace.

The 767s will provide similar capacity as the MD-10s, with an approximate 30 percent increase in fuel efficiency and a reduction in unit operating costs of more than 20 percent. They also increase efficiency by sharing spare parts, tooling and flight simulators with the Boeing 757-200s which are part of the FedEx air fleet.

Today’s action is in addition to a FedEx Express agreement with Boeing announced in December 2011 to purchase 27 new 767s for delivery between fiscal 2014 and 2018 and delay delivery of a number of 777s.

In June, FedEx announced the permanent retirement from service of 18 Airbus A310 aircraft and 26 related engines, as well as six McDonnell Douglas MD-10 aircraft and 17 related engines, bringing the total to 50 aircraft to be retired by the end of fiscal 2013.

Image: Boeing.

FedEx:

FedEx to retire 18 Airbus A310-200 and six McDonnell Douglas MD-10 freighters

FedEx Express (FedEx Corporation) (Memphis) has announced its decision to permanently retire from service 18 Airbus A310-200 aircraft and 26 related engines, as well as six McDonnell Douglas (Boeing) MD-10-10 aircraft and 17 related engines. The majority of these aircraft are currently parked and not in revenue service. As a consequence, a non-cash impairment charge of $134 million ($84 million, net of tax, or $0.26 per diluted share) was recorded in the fourth quarter. The decision to permanently retire these aircraft will better align the U.S. domestic air network capacity of FedEx Express to match current and anticipated shipment volumes.

These permanent retirements are in addition to five Boeing 727-200 aircraft retired in the fourth quarter of fiscal 2012 and the planned fiscal 2013 retirement of 21 Boeing 727 aircraft, which will be fully depreciated.

FedEx Express continues to modernize its aircraft fleet by adding newer aircraft that are more reliable, fuel efficient and technologically advanced, and retiring older, less-efficient aircraft. In response to the company’s new fleet plans, FedEx Express is shortening the depreciable lives of the following aircraft and related engines: 31 additional Boeing MD-10-10s, 18 additional Airbus A310s, four Boeing 727s and one Boeing MD-10-30. This will accelerate the retirement of these aircraft to align with the delivery schedule for replacement Boeing 767-300 and Boeing 757-200 aircraft. The accelerated depreciation on these aircraft is expected to total $196 million over the next three fiscal years with a partial offset from the avoidance of depreciation related to the retirements (see table):

Total Impact on Fleet Depreciation – Decrease/(Increase)
(in millions)

	FY13			FY14			FY15			FY16		FY17-FY25		Total
Depreciation Avoided Due to Retirements	$	24		$	22		$	18		$	16	$	54	$	134
Accelerated Depreciation Impact		(69	)		(70	)		(57	)		10		186		—
Net Impact on Depreciation		($45	)		($48	)		($39	)	$	26	$	240	$	134

FedEx Express Aircraft Fleet Facts:

As of February 29, 2012, FedEx Express’s fleet totaled 688 aircraft, including 397 jet aircraft.
In fiscal 2011, FedEx Express spent $3.2 billion on 1.2 billion gallons of jet fuel.
The Boeing 757 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 Boeing 757.

Top Copyright Photo: Bruce Drum.

Bottom Copyright Photo: TMK Photography.

FedEx Express:

FedEx Corporation reports net income of $521 million in the fiscal third quarter

FedEx Corporation (Memphis) reported earnings of $1.65 per diluted share for the third quarter ended February 29, which includes a $0.10 per share reversal of a reserve associated with a legal matter at FedEx Express. Last year’s third quarter earnings were $0.73 per diluted share, which included $0.08 per diluted share in costs related to the combination of the company’s FedEx Freight and FedEx National LTL operations. Excluding these one-time items, earnings were $1.55 per diluted share in the third quarter, compared to $0.81 per diluted share a year ago.

FedEx Corporation reported the following consolidated results for the third quarter:

• Revenue of $10.56 billion, up 9% from $9.66 billion the previous year

• Operating income of $813 million, up 107% from $393 million last year

• Operating margin of 7.7%, up from 4.1% the previous year

• Net income of $521 million, up 126% from $231 million a year ago

Operating income improved due to the continued strong performance of FedEx Ground driven by higher yields and volumes, as well as significantly improved results at FedEx Freight. Operating income also reflects the positive year-over-year impact, predominately at FedEx Express, of a benefit from the timing lag that exists between when fuel prices change and when indexed fuel surcharges automatically adjust. The company also benefitted from a lower tax rate and mild winter weather.

FedEx projects earnings to be $1.75 to $2.00 per diluted share in the fourth quarter and an adjusted $6.35 to $6.60 per diluted share for fiscal 2012. This guidance assumes the current market outlook for fuel prices and moderate growth in the global economy. Including the FedEx Express legal reserve reversal, earnings are expected to be $6.43 to $6.68 per diluted share for fiscal 2012. The company reported earnings of $1.75 per diluted share in last year’s fourth quarter. The capital spending forecast for fiscal 2012 remains $4.2 billion.

For the third quarter, the FedEx Express segment reported:

• Revenue of $6.54 billion, up 8% from last year’s $6.05 billion

• Operating income of $349 million, up 96% from $178 million a year ago

• Operating margin of 5.3%, up from 2.9% the previous year

U.S. domestic revenue per package grew 9% due to higher rate per pound and fuel surcharges, while average daily package volume decreased 4%. International priority (IP) revenue per package grew 5% due to higher fuel surcharges and package weights, while average daily package volume decreased 1%. IP freight average daily pounds increased 4% with revenue per pound up 2% due to higher fuel surcharges. In total, IP average daily package and freight pounds increased 2% and revenue increased 6% year-over-year.

Operating income and margin improved in the quarter, reflecting the year-over-year benefit of the fuel surcharge timing lag and the reversal of a $66 million reserve associated with a legal matter. One additional operating day benefitted this year’s results, while prior year results were negatively impacted by severe winter weather.

FedEx Slide Show: CLICK HERE

Rock Center’s feature on FedEx and interview with Fred Smith

FedEx Express Boeing 777-FS2 N884FD (msn 37137) PAE (Nick Dean), originally uploaded by Airliners Gallery.

FedEx (Memphis) was one of the feature sections last night on NBC’s Rock Center:

Watch the Video: CLICK HERE

FedEx Photo Gallery: CLICK HERE

Chinese Pandas touch down in Paris on the “FedEx Panda Express”

FedEx Express (Memphis) today announced the safe arrival of two three-year-old giant pandas, Huan Huan and Yuan Zi, from the Chengdu Research Base of Giant Panda Breeding in China to Paris Charles de Gaulle International Airport in France.

Working in conjunction with ZooParc de Beauval, the specially-chartered Boeing 777-FS2 N892FD (msn 38707), known as the “FedEx Panda Express”, landed in Paris on January 15 at noon local time, 6 a.m. Eastern time. The arrival of these special animals marks the first time in 10 years that giant pandas will reside in France.

The nonstop flight was chartered especially for the VIPs—Very Important Pandas—and the pair travelled in custom-built enclosures provided by FedEx Express. In-flight, Huan Huan and Yuan Zi spent the journey snoozing and eating bamboo. They were accompanied by a Chinese veterinarian and animal handler as well as the managing director from ZooParc de Beauval to look after their needs throughout the journey.

During the flight, the pandas were in the safe hands of seasoned pilots Captain Paul Cassel, Captain Tom Jenkins and Captain John Hunt, who all have extensive experience in transporting some of the world’s most precious cargo, ranging from white rhinos to penguins.

The pandas continued their journey in FedEx Express vehicles to deliver them to their new home at ZooParc de Beauval. French authorities were also on hand to ensure a smooth ride. Upon arrival, the pandas will reside together in the new magnificent Chinese area in a specially-built giant panda enclosure at ZooParc de Beauval.

Copyright Photo: FedEx Express. The “FedEx Panda Express”, a specially-chartered FedEx Express Boeing 777F, prepares to depart from Chengdu Airport in China for Roissy-Charles de Gaulle Airport in France with two three-year-old giant pandas on board. The pandas, Huan Huan and Yuan Zi, will reside at ZooParc de Beauval near Paris.

FedEx Express Slide Show: CLICK HERE

China Pandas bound for France via FedEx Express

FedEx Express Boeing 777-FS2 N892FD (msn 38707) (FedEx Panda Express) EDI (Jim Fulton) (close-up), originally uploaded by Airliners Gallery.

FedEx Express (Memphis) and the ZooParc de Beauval today announced the loan of two giant pandas from China to ZooParc de Beauval in France.

FedEx Express is providing logistical services to transport the giant pandas on Sunday, January 15, subject to final regulatory approval. Working in conjunction with the ZooParc de Beauval and the Chinese Association of Zoological Gardens (CAZG) in China, FedEx Express will fly three-year-old female Huan Huan and three-year-old male panda Yuan Zi non-stop from Chengdu Airport in China to Roissy-Charles de Gaulle Airport in France aboard a specially-chartered and panda-decaled Boeing 777F flight known as the “FedEx Panda Express.” Upon arrival in France, the pandas will be transported by FedEx Express on a specially-decaled vehicle from the airport to ZooParc de Beauval.
The arrival of Huan Huan and Yuan Zi will mark the first time in more than 10 years that giant pandas will reside in France.

The FedEx Express logistical operation includes ground and air transportation and the provision of two custom-built transport containers for the pandas. By deploying the Boeing 777F aircraft to transport the endangered species, FedEx Express is providing a direct flight from China to France, ensuring the pandas the shortest flight time. The fuel-efficient Boeing 777F aircraft is the world’s largest twin-engine cargo aircraft and the newest addition to the FedEx Express global fleet.

FedEx Express, ZooParc de Beauval, and the Chengdu Research Base of Giant Panda Breeding have collaborated extensively to ensure all necessary precautions have been taken to provide a safe and comfortable flight for the pandas. Animal care experts have been granted special flight privileges to accompany the pandas onboard the aircraft. Upon arrival, the pandas will reside in ZooParc de Beauval’s specially-built giant panda enclosures.

Currently, conservationists estimate that only 1,600 pandas remain in the wild. Both Huan Huan and Yuan Zi are part of global giant panda conservation programs designed to increase the panda population.
Due to security regulations, the departure and arrival events of the pandas will be closed to the general public, but people can follow the pandas’ journey at http://blog.fedex.com/panda-express-france or http://news.fedex.com/PandaExpress2012.

FedEx Express has a long history of transporting rare and delicate cargo. In December 2011, FedEx Express transported Tian Tian, a female panda and Yang Guang, a male panda to Edinburgh Zoo in the United Kingdom. In February 2010, FedEx Express transported Tai Shan, a male panda born at the National Zoo in Washington D.C., and Mei Lan, a male panda born at Zoo Atlanta, back to China. In 2003, FedEx Express transported two giant pandas from China to the Memphis Zoo. In 2000, FedEx Express transported Tai Shan’s parents from China to Washington D.C.’s National Zoo.

Exotic cargo transported by FedEx Express has included polar bears, white tigers, elephants, penguins, mountain lions, gorillas, eagles and even a 13-foot tiger shark used in filming the movie “Jaws.”

Other unusual international cargo transported by FedEx includes a windmill from Denmark, the Ryder Cup and a vintage Jaguar Le Mans automobile worth more than £1 million.

FedEx Slide Show: CLICK HERE

FedEx pilots respond to release of pilot fatigue rule

FedEx Express Boeing 777-FS2 N884FD (msn 37137) PAE (Nick Dean), originally uploaded by Airliners Gallery.

FedEx Express’ (Memphis) pilots have officially issued this response to the FAA’s final regulations concerning pilot fatigue:

“The FedEx Master Executive Council (MEC), the FedEx branch of the Air Line Pilots Association, International (ALPA), issued the following press release concerning the Federal Aviation Administration’s (FAA) final regulations regarding airline pilot flight- and duty-time limitations and minimum rest requirements:

The release yesterday of the Federal Aviation Administration’s long-awaited science-based fatigue rule for flight and duty time was a political failure. The rule completely ignores the safety of cargo pilots and instead lets operators choose to ignore the safety improvements that will benefit pilots carrying passengers.

Fatigue affects all pilots. Over the first century of powered flight, countless accidents trace pilot fatigue as a contributing factor. “It is outrageous that the new rule does not include cargo. Cargo aircraft operate into the same airspace, into the same crowded airports surrounded by millions of homes and face the same challenges every other professional aviator encounters on a 24-hour basis,” said FedEx MEC Chairman Scott Stratton.

An NTSB spokesman summed it up well: “A tired pilot is a tired pilot, whether there are 10 paying customers on board or 100, whether the payload is passengers or pallets.” As the FAA said in its draft, “Fatigue threatens aviation safety because it increases the risk of pilot error that could lead to an accident.” This is particularly a concern for crews that fly “on the back side of the clock.” Ironically, the back side of the clock is exactly where the majority of cargo pilots find themselves operating aircraft.

The families of the pilots and passengers who perished in the Colgan Air Flight 3407 operating as Continental Connection accident brought the issue of pilot fatigue to the forefront. Initially, Congress and the FAA acted to address pilot fatigue. However, cargo carrier lobbyists were able to use a protracted backroom process to convince federal policy-makers that somehow cargo pilots and their families were less worthy of fatigue protection. The FedEx MEC is outraged at the casual dismissal of cargo pilots and their families. Industry commenters asserted that, “while a passenger-operation accident can result in numerous fatalities, an all-cargo accident would consist primarily of property damage.” The FAA apparently placed some value on this absurd statement and coldly used it to justify the subordination of cargo families. “This nonsense indicates the character of the political process that produced this rule,” said Captain Stratton. “It is clear that special interest money and politics won over safety today, but we will not sit idly by and allow another 50 years of ambivalence to take hold. Our work to achieve a single level of safety as envisioned by the founding members of the Air Line Pilots Association, International shall continue. There can be no “Scheduling with Safety” without “One Level of Safety.”

FedEx Slide Show: CLICK HERE

FedEx Express orders 27 new Boeing 767-300Fs to replace MD-10s

FedEx Express McDonnell Douglas MD-10-10 (F) (DC-10-10F) N366FE (msn 46602) YYZ (TMK Photography), originally uploaded by Airliners Gallery.

FedEx Express (FedEx Corporation) (Memphis) announced it has signed an agreement with the Boeing Company to purchase 27 new 767-300F aircraft, with three arriving in fiscal 2014 and six per year in fiscal 2015-2018. The 767s were selected as the best choice to begin replacing FedEx Express’s MD-10 aircraft, some of which are more than 40 years old. The 767s 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.

FedEx Express is also delaying the delivery of 11 777F aircraft, two of which will be deferred from fiscal 2013, five from fiscal 2014 and one per year in fiscal 2015-2018, to better balance air network capacity to demand. As a result of these deferrals, FedEx Express will place into service four 777s in fiscal 2013 and two in fiscal 2014. The company is also exercising two 777 options for aircraft to be delivered at the end of the delivery schedule.

On the financial side, FedEx Corporation reported net income of $497 million, up 76% from $283 million a year ago for its fiscal second quarter.

The corporation reported earnings of $1.57 per diluted share for the second quarter ended November 30. Last year’s second quarter earnings were $0.89 per diluted share, which included $0.27 per diluted share in costs related to the combination of the company’s FedEx Freight and FedEx National LTL operations and a reserve associated with a legal matter at FedEx Express. Excluding those one-time charges, earnings were $1.16 per diluted share a year ago.

FedEx Express Slide Show: CLICK HERE

FedEx Express may order 30 Boeing 767-300 ER freighters

FedEx Express (Memphis) is reportedly near firming up an order for around 30 new Boeing 767-300 ER freighters according to this report by the Seattle Times. The order could be announced next week. If correct, this would be a new type for the company and the order would keep the 767 production line going.