FedEx, UPS Call Time On MD-11 Fleets
March 20, 2023
Air cargo giants FedEx and UPS,
the two largest remaining operators of the McDonnell Douglas-developed MD-11 freighter,
have both announced plans to begin retiring their fleets of aging trijets.
Between them, FedEx and UPS currently operate 94 MD-11s,
or almost half of the 200 aircraft delivered between 1990 and 2001.
But FedEx, which was launch customer for the factory-built freighter version,
has announced plans to phase out the trijet
as part of a broad ranging cost-saving and modernization campaign,
while UPS began retiring the first of its MD-11s in January 2023.
Dubbed the DRIVE program,
the FedEx streamlining effort aims to deliver $4 billion in cost reductions by the end of fiscal 2025.
Raj Subramaniam, FedEx president and chief operating officer,
says part of this effort is focused on reconfiguring the air network.
“This requires many steps, including plans currently being developed to phase out our fleet of MD-11s.
Our aircraft modernization program and use of [Boeing] 777s and 767s affords us the ability to flex our plans,” he adds.
Commenting at the company’s fiscal 2023 third quarter financial results call,
Subramaniam says the decision also reflects a flatter market forecast.
“Our fleet modernization strategy that we’ve been underway has allowed us to build a more agile and flexible fleet.
And so, we come to a fork in the road here,
are we going to see a high-demand environment or a low-demand environment?
And the MD-11 was that flex fleet.
And as we now look at the demand environment, we don’t see that high demand coming through.”
FedEx currently operates 54 MD-11s.
The carrier plans to replace them with a combination of 767-300F and 777Fs,
of which it has 27 and eight on order respectively.
The 767 is due to become FedEx’s single largest fleet type with 125 already currently in operation and 27 more on order.
The 53-strong 777F fleet is due to grow to 61 with the addition of eight further aircraft through 2025.
UPS, which accepted its first MD-11 in 2001,
says it will retire the first batch of six trijets in 2023 and currently has 40 remaining in service.
Like FedEx, it is reducing costs as cargo loads decline
and is replacing the older aircraft with more fuel efficient 767-300Fs.
The operator, which saw its 2022 fourth quarter operating profit fall by 3.3%,
currently operates 80 767s and has a further 27 on order between now and 2025.
Outside of FedEx and UPS,
the third largest MD-11 operator is Florida-based Western Global Airlines with 15 aircraft,
of which 10 are thought to be currently in storage at various locations.
The cargo sector enjoyed a boom in demand during the pandemic,
when grounded passenger flights meant less belly hold capacity was available for transporting goods.
Taking advantage of the strong cargo activity,
Airbus has launched the A350F and Boeing the 777-8F.
In recent months, however, cargo demand has weakened.
The cargo market made a slow start to 2023, with demand down 14.9% year-over-year in January and capacity up 3.9%, IATA said March 7.
Fedex to retire its' McDonnell Douglas MD-11 tri-jets earlier than planned...
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Fedex to retire its' McDonnell Douglas MD-11 tri-jets earlier than planned...
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Re: 2023: Fedex to retire its' McDonnell Douglas MD-11 tri-jets earlier than planned...
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https://www.ch-aviation.com/portal/news ... dianapolisMD Douglas MD-11 (F) 48500 493 N575FE FedEx ferried 27mar23 MEM-VCV for part-out & scrap ex N485LS
FedEx Express (FX, Memphis International)
has announced it will close its maintenance facility at Los Angeles International airport
once the lease of its hangar expires in June 2024.
The airline will then consolidate its maintenance operations at Indianapolis International.
FedEx leased the former Flying Tigers facility in 1988.
The airline's Los Angeles facility
maintains FedEx Express's diminishing fleet of McDonnell Douglas trijets.
The airline has already retired all MD-10-10(F)s and MD-10-30(F)s by the end of 2022,
and recently announced the general intention to gradually phase out the remaining MD-11Fs.
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MD Douglas MD-11 (F) 48447 464 N628FE FedEx ferried 06apr23 MEN-VCV for part-out & scrap ex HB-IWE
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Amid Softening Demand, FedEx Will Park Or Retire 29 Aircraft Over The Next Year
PUBLISHED 2 DAYS AGO
The plan will see the exit of nine MD-11s from the FedEx fleet.
On June 20th, FedEx released its latest financial results, revealing "ongoing demand weakness."
The freight mover reported that the performance witnessed in its most recent fiscal quarter
was due to both demand weakness and cost inflation.
Part of the company's plan to deal with this is to reduce its costs and park a portion of its fleet.
According to FreightWaves,
FedEx will reduce its operating costs by removing 29 aircraft from its fleet over the next year.
This will see aircraft either permanently retired or temporarily stored.
This move goes hand in hand with the operator's recent reduction in global flight hours.
Providing more detail about this plan,
FedEx CEO Raj Subramaniam stated that 20 aircraft would be parked over the next year,
while an additional nine MD-11 freighters will be permanently retired.
This build's on the company's recent aircraft retirement actions,
which have already seen the retirement of the following 18 aircraft over the past year:
12x MD-11s
4x Boeing 757-200s
2x Airbus A300-600s
Presently, FedEx has 46 MD-11s, but these will be phased out by around 2027 or 2028.
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