Tag Archives: FedEx

FedEx and its pilots reach a tentative agreement

FedEx Express (Memphis) and its pilots, represented by the Air Line Pilots Association (ALPA), have reached a tentative agreement on a new contract. The tentative agreement is subject to a final ratification vote of its members. ALPA issued this statement:

ALPA logo-2

On Wednesday, August 19, FedEx pilots, represented by the Air Line Pilots Association, Int’l (ALPA), reached a tentative agreement (TA) with FedEx management on an amended collective bargaining agreement. The parties have been actively negotiating since 2011. Discussions started in 2011 under a special interim discussions agreement that had originally been made by both parties to assist in narrowing the field of open items in order to conclude formal bargaining in a timely manner. Formal bargaining began in January 2013 when Section 6 openers were exchanged with management. On October 31, 2014, FedEx management filed for mediation with the National Mediation Board (NMB), and negotiations have been conducted under NMB guidance.

The new agreement is subject to review and finalization of contract language. Terms of the tentative agreement are not being released, as they first must be reviewed and approved by the FedEx ALPA Master Executive Council (MEC). If approved by the FedEx MEC leadership, the TA will be subject to a ratification vote of over 4,000 FedEx pilots. If ratified, the contract would become amendable in 2021.

Copyright Photo: Paul Ferry/AirlinersGallery.com. Boeing 757-236 (F) N915FD (msn 24120) departs from Luton Airport near London.

FedEx Express aircraft slide show: AG Airline Slide Show

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FedEx Express early retires 15 aircraft, adjusts the retirement schedule for 23 additional older aircraft

FedEx Corporation (FedEx Express) (Memphis) has announced it has permanently retired 15 aircraft and 21 related engines as it continues to rationalize capacity and modernize its aircraft fleet to more effectively serve FedEx Express customers.

The company continued;

FedEx Express logo (large)

The permanent retirement of aircraft and related engines includes:

Seven McDonnell MD-11F airframes and 12 related engines;

Three Airbus A300 airframes and three related engines;

Four Airbus A310-300 airframes and three related engines; and

One McDonnell Douglas MD10-10 airframe and three related engines.

The impact of retiring these aircraft, engines and related parts resulted in a non-cash impairment charge of $246 million recorded in May 2015.

FedEx has also adjusted the retirement schedule of an additional 23 airframes and 57 engines.

FedEx also recognized in May 2015 $30 million in cash charges associated with these actions.

These combined retirement changes will not have a material impact on near-term depreciation expense.

FedEx Express fleet as of February 28, 2015:

FedEx Express Fleet 2.28.15

Notes:

1 – February 28, 2015 Boeing 757 count includes 21 aircraft that are not currently in operation, 5 of which are in the modification process and 16 of which are awaiting modification.

2 – As of February 28, 2015 Boeing 767 count includes 3 aircraft that are not in operation and are in the modification process. As of February 28, 2015, FedEx is committed to purchase 44 B767Fs. Aircraft to be delivered statistics include certain lease additions and expirations.

3 – As of February 28, 2015, FedEx is committed to purchase 18 Boeing 777Fs.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Seven MD-11Fs were retired. McDonnell Douglas MD-11 (F) N595FE (msn 48553) climbs away from Anchorage.

FedEx Express aircraft slide show: AG Airline Slide Show

FedEx Corporation to acquire TNT Express for $4.8 billion

FedEx Corporation (FedEx Express) (Memphis) has announced its intention to acquire its European rival TNT Express (TNT Airways) (Amsterdam) in an all-cash public offer with a stated public value of $4.8 billion. FedEx is offering a 33 percent premium in its price offering for the stock of TNT. The combined European headquarters will be Amsterdam. TNT’s Liege cargo hub will be maintained.

The two companies issued this joint statement:

FedEx Corporation logo

TNT Express logo

 

Transaction highlights:

FedEx Corporation (FedEx) and TNT Express N.V. (TNT Express) reached conditional agreement on recommended all-cash public offer of €8.00 per ordinary TNT Express share.

The Offer Price represents a premium of 33% over the closing price of 2 April 2015 and a premium of 42% over the average volume weighted price per TNT Express share of €5.63 over the last 3 calendar months.

The transaction represents an implied equity value for TNT Express of €4.4 billion ($4.8 billion).

Transaction unanimously recommended and supported by TNT Express’ Executive Board and Supervisory Board.

High level of deal certainty.

PostNL N.V. has irrevocably confirmed to support the Offer and tender its 14.7% TNT Express shareholding.

Combination will transform FedEx’s European capabilities and accelerate global growth.

Customers will enjoy access to an enhanced, integrated global network, combining TNT Express strong European capabilities and FedEx’s strength in other regions globally, including North America and Asia.

FedEx and TNT Express employees share a commitment to serving customers and delivering value for shareholders and supporting the communities they live and work in.

The parties have agreed to certain non-financial covenants including:

Existing employment terms of TNT Express will be respected.

The European regional headquarters of the combined companies will be in Amsterdam/Hoofddorp.

TNT Express hub in Liege will be maintained as a significant operation for the group going forward.

TNT Express’ airline operations will be divested, in compliance with applicable airline ownership regulations.

FedEx and TNT Express anticipate that the Offer will close in the first half of calendar year 2016.

FedEx and TNT Express are confident that anti-trust concerns, if any, can be addressed adequately in a timely fashion.

Top Copyright Photo: Paul Bannwarth/AirlinersGallery.com. FedEx Express Boeing 757-204 (F) N923FD (msn 26266) departs from EuroAirport serving Basel/Mulhouse/Freiburg.

FedEx Express aircraft slide show: AG Airline Slide Show

TNT aircraft slide show: AG Airline Slide Show

Bottom Copyright Photo: Bernhard Ross/AirlinersGallery.com. TNT Airways Boeing 737-4M0 (F) OE-IAT (msn 29210) taxies to the runway at Frankfurt.

FedEx Express increases the number of countries for its International First® early delivery service to 97

FedEx is expanding solutions for global customers who need their critical deliveries to arrive as early as the start of the next business day.

FedEx Express (Memphis), a subsidiary of FedEx Corporation, and the world’s largest express transportation company, is broadening the FedEx ‘International First®’ early delivery service, increasing the number of origin markets to include the following:

Austria

Bahrain

Belize

Bolivia

China

Czech Republic

Denmark

Ecuador

El Salvador

Finland

Guiana (Guyana)

Guyana

Honduras

Hungary

India

Indonesia

Korea

Kuwait

Malaysia

Nicaragua

Norway

Paraguay

Peru

Philippines

Portugal

Poland

Singapore

Suriname (Surinam)

Sweden

Thailand

United Arab Emirates

This expansion brings the total number of origin markets to 97, and means that customers can now use FedEx International First to ship packages from the above countries to any of the existing International First destination markets.

Depending on origin and destination, FedEx International First shipments arrive within one to three business days, often at the start of the business day. The service is most often used for business documents, electronic and high tech equipment, medical devices, clinical trials and gear for the entertainment industry–shipments that require delivery on a tight deadline.

About FedEx International First

FedEx International First is a time-definite, customs cleared, door-to-door express service with a pre-defined delivery commitment for shipments up to 150 lbs. per package. Customers receive International First deliveries as early as 8 a.m. in the United States, 9 a.m. in Europe, and 10 a.m. in Asia, Canada and Latin America. While the range of shipments is broad, it’s often the delivery service of choice for customers shipping time-sensitive materials.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. McDonnell Douglas MD-11 (F) N644FE (msn 48444) lands in Anchorage.

FedEx Express: AG Slide Show

FedEx is forecasting another record holiday season with an 8.8% increase and December 15 as the busiest day

FedEx Corporation (FedEx Express) (Memphis) is forecasting another record holiday. The company expects to move more than 290 million shipments between Black Friday and Christmas Eve, an 8.8 percent increase in overall year-over-year Peak seasonal volume.

The season is expected to be bolstered by three volume spikes throughout December, occurring the first three Mondays of the month and each expected to surpass 20 million in volume.

December 15 is projected to be the busiest day in company history, with a forecasted 22.6 million shipments moving around the world. Peak projections are included in FedEx earnings guidance for FY15.

Copyright Photo: Ken Petersen/AirlinersGallery.com. An upgraded McDonnell Douglas MD-10-30F (DC-10-30F) registered as N321FE (msn 47836) arrives in Las Vegas.

FedEx Express Aircraft Slide Show: AG Slide Show

 

FedEx pilots to conduct informational picketing today

FedEx Express‘ (Memphis) 4,200 pilots, represented by the Air Line Pilots Association, Int’l (ALPA), will conduct informational picketing on Tuesday, September 23, in three cities to show, according to the union, “their continuing frustration with ongoing contract negotiations and their resolute support of their Negotiating Committee.”

Informational picketing will take place on Tuesday, September 23, at the following locations and times (all times are local):

Anchorage
Outside FedEx sorting facility at Ted Stevens
Anchorage Int’l Airport, corner of Postmark
Drive and Rockwell Avenue
11:00 a.m. to 11:45 a.m.

Los Angeles
Maguire Gardens (South Flower Street and
West 5th Street)
11:00 a.m. to 11:45 a.m.

Memphis
Outside FedEx Air Operations Center (3131
Democrat Road)
Noon to 12:30 p.m.

According to the union, “FedEx Express and its pilot group came to a historic collective bargaining agreement in 2011. What made this agreement historic was the commitment to continue bargaining so as to foster a more efficient negotiating climate when formal negotiations commenced in 2013 despite having achieved a contract. “There was a real opportunity to fix some difficult problems with well-developed long-term solutions and without the pressure that comes with traditional bargaining. Unfortunately, management chose a different route,” said Captain Scott Stratton, chairman of the ALPA FedEx Master Executive Council. “We should have had a new contract by now, but instead we have spent too much time mired in a ‘traditional’ bargaining situation that does not promote good labor-management relations. In spite of management’s actions, the pilots remain committed to achieving a responsible negotiated agreement that recognizes our contributions to FedEx’s remarkable profitability.”

Copyright Photo: Ken Petersen/AirlinersGallery.com. McDonnell Douglas MD-10-10F (DC-10-10F) N554FE (msn 46708) lands at Raleigh/Durham.

FedEx Express: AG Slide Show

FedEx Corporation’s earnings surge in the first quarter to $606 million

FedEx Corporation (FedEx Express) (Memphis) reported its earnings for its fiscal first quarter surged by 24 percent to net income of $606 million. The corporation issued this financial report:

FedEx Corporation today reported earnings of $2.10 per diluted share for the first quarter ended August 31, up 37% from last year’s $1.53 per share.

First Quarter Results

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

• Revenue of $11.7 billion, up 6% from $11.0 billion the previous year

• Operating income of $987 million, up 24% from $795 million last year

• Operating margin of 8.5%, up from 7.2% the previous year

• Net income of $606 million, up 24% from last year’s $489 million

Operating income increased primarily due to higher volumes and increased yields at all three transportation segments. Results in the first quarter also include benefits from lower pension expense and the company’s profit improvement programs. These benefits were partially offset by higher aircraft maintenance expense due to the timing of certain engine maintenance events.

During the quarter, the company acquired 5.3 million shares of FedEx common stock. As of August 31, 2014, no shares remained under the existing share repurchase authorizations. Share repurchases benefited earnings in the quarter by $0.15 per diluted share.

Outlook

FedEx reaffirmed its fiscal 2015 earnings forecast of $8.50 to $9.00 per diluted share. The outlook assumes no net year-over-year fuel impact and continued moderate economic growth. The capital spending forecast for fiscal 2015 remains $4.2 billion.

“FedEx reported strong first quarter results, as all three of our transportation segments drove higher revenues and improved profitability year over year,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “Our profit improvement programs are progressing as planned and we continue to expect strong earnings growth this year.”

2015 Rate Increases

As previously announced, FedEx Express, FedEx Ground and FedEx Freight will increase shipping rates effective January 5, 2015.

FedEx Express will increase shipping rates by an average of 4.9% for U.S. domestic, U.S. export and U.S. import services.

FedEx Ground and FedEx Home Delivery will increase shipping rates by an average of 4.9%. In addition, as announced in May, FedEx Ground will also begin applying dimensional weight pricing to all shipments.

FedEx Freight will increase shipping rates by an average of 4.9%. This rate change applies to eligible FedEx Freight shipments within the U.S. (including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands), between the contiguous U.S. and Canada, within Canada, between the contiguous U.S. and Mexico, and within Mexico.

Details of all changes to rates and surcharges are available at fedex.com/us/2015rates.

Corporate Headquarters Costs

Effective this fiscal year, the company ceased allocating to its transportation segments the costs associated with the corporate headquarters division. These costs are now included in “Corporate, eliminations and other.” Prior year amounts in this release have been revised to conform to the current presentation.

FedEx Express Segment

For the first quarter, the FedEx Express segment reported:

• Revenue of $6.86 billion, up 4% from last year’s $6.61 billion

• Operating income of $369 million, up 35% from $273 million a year ago

• Operating margin of 5.4%, up from 4.1% the previous year

Revenue increased due to higher U.S. domestic package volume and international export package yields partially offset by lower freight revenue. U.S. domestic package volume grew 5%, as 8% growth in overnight and deferred box volume was partially offset by lower envelope volume. U.S. domestic yield increased 1% from higher fuel surcharges, changes in service mix and increased rates. FedEx International Priority® volume grew 1%, while FedEx International Economy® volume increased 3%. International export revenue per package increased 3% due to fuel surcharges, higher rates and weight per package.

Operating income and margin improved as higher U.S. domestic package volume, improved international export yield and benefits from profit improvement programs more than offset higher aircraft maintenance expense and lower freight revenues.

Copyright Photo: Steve Bailey/AirlinersGallery.com. Boeing 777-FHT N883FD (msn 39285) of FedEx Express climbs away from the runway at Anchorage Ted Stevens International Airport (ANC).

FedEx Express: AG Slide Show