“Along with the decisions to retire these 50
aircraft, we are also developing detailed
operating and cost structure plans to further
improve our efficiency,” said David J. Bronczek,
FedEx Express president and chief executive
officer. “We expect to provide additional
information on these plans in the fall.”
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 MD10-10s, 18
additional Airbus A310s, four B727s and one
Boeing MD10-30.
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.
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