FedEx has taken the same strategy as many on the general air cargo side and that is to reduce capacity. “We’re taking capacity down, but in concert with that reduction in capacity what we’re not doing, is we’re not reducing service and that’s a function of the way we built our network. We built our network so effectively there’s a redundancy in connectivity built in, so we can take units of capacity out and not affect the transit time,” he says. FedEx is also moving deferred and lower yielding products into other lower costs networks. “We are going to use other carriers and belly capacity and to some extent main deck capacity where it makes sense to do so. Up to the beginning of this year the express carrier was operating up to 10 wide body flights a day on the transpacific. “We can scale back that capacity quite a bit without affecting service and we operate three flights between Asia and Europe with basically a dozen or so flights a day connecting intra- Asia through our hub in Guangzhou.”