As a part of a more comprehensive restructuring strategy, the crew will be transferred to other FedEx bases.
The world’s largest shipping company will close bases in the US and Europe and relocate its workforce to existing alternative locations. In an effort to save up to $4 billion over the next five years, FedEx is restructuring and streamlining its operations at the same time as the move.
The reductions will impact the crew and pilots at three of its bases that house crews for the Boeing 757 and McDonnell Douglas MD-11. Along with Los Angeles, California, one of the US bases to close is Anchorage, Alaska. The staff at Germany’s Cologne-Bonn Airport will be moved within Europe. In an email, the company stated that employees who fly two older aircraft types would gradually move to other bases throughout the FedEx network.
The bases are closing for what?
Medium-sized Boeing 757 freighter crews are housed at Cologne Bonn Airport by the Germany hub. Based at Ted Stevens International Airport in Anchorage, Alaska, and Los Angeles International Airport, respectively, are the departing McDonnell Douglas MD-11s and the teams that go with them. The trijet’s final production iteration, the MD-11 freighter, is the only MD-11 variant still in use today.
Six B777-200Fs will not change, and the air cargo carrier continues to anticipate receiving the twenty-seven B767-300Fs from its current order. FedEx stated in an email obtained by Freight Waves that the base closures would be gradual and that the move would not affect its business operations:
The decision only impacts the base of the crews operating these flights and will not have an impact on our current service, according to FedEx. “Our operations in these markets continue to play an important role in the global FedEx network, and the flexibility of this network enables us to make adjustments that best meet the needs of our customers around the world.”FedEx maintains pilot bases in its regional hubs of Indianapolis, Oakland, and Guangzhou in addition to its international hub in Memphis, Tennessee. Prior to the closure due to pandemic restrictions, the company had a pilot base there.
a component of a larger reorganization plan.
On its most recent investor call, the company disclosed that it was undergoing a significant streamlining process. FedEx Express, FedEx Ground, FedEx Services, and other FedEx operating companies will be merged into Federal Express Corporation through a phased transition that lasts until June 2024. Only FedEx Freight will continue to operate independently.FedEx’s air capacity is a key component of the cost restructuring plan. FedEx Express currently oversees the company’s aviation operations. FedEx Express reported declining operating results despite a 3% increase in revenue per package. This was because of lower global volumes as well as the adverse impact of persistently weak demand.
According to the most recent company, it runs 697 aircraft at 650 airports across the globe. Two are being quickly phased out of this fleet. The fleet’s 119 Boeing 757-200s are being retired as the Boeing 767F is once again being delivered.
The company also started a two-year early retirement program for its MD-11 fleet recently. 58 of the recognizable tri-engine jets, which FedEx currently uses but will no longer operate after 2028
rerouting packages with no priority
By switching some shipments to ground transportation and outside carriers, FedEx said it will save $700 million annually on its air network. Less emphasis will be placed on its hub-and-spoke model with this change in favor of direct routes. Within the United States, ground transport will be the standard choice, and air transport will only be used for urgent overnight shipments.
Additionally, the air cargo company will consolidate shipment volumes over the coming years to reduce its trans-Pacific flying capacity by about 30%.
