FedEx parks jets
US express giant FedEx has given further evidence of the difficulities it is facing in its domestic market via a decision to remove 14 older jets from service, according to the Associated Press.
The company, which recently announced plans to cut around 1000 jobs, with 500 going at its Memphis headquarters, will park 10 A310S and four MD-10s by 31st May, along with excess engines. The decision will cost FedEx US$180 million.
FedEx still has a number of aircraft grounded due to overcapacity, although the carrier is planning on taking delivery of more fuel-efficient aircraft - including a fleet of 777 freighters - in fiscal year 2010, which begins on 1st June.
As capacity drops as a result of the economic slowdown, FedEx's move is a sensible one, especially given the comparative age of its large existing fleet.