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Old 02-10-2006, 04:08 PM
  #6  
dckozak
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Joined APC: May 2005
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Wink Making money hand over fist

Originally Posted by ryane946
................. Since these cargo companies are making money right now, it seems logical that now would be a good time to invest and replace these aircraft with ones that are cheaper to operate, and have a more useful cargo load.

What do you think about this? Why haven't these been replaced even as jet fuel skyrockets? Should they or shouldn't they be replaced?
Thanks for your opinions.
Fedex has been talking about replacing the 727-100 for years, did get rid of a lot of them but still there still quite a few on the ramp. The airframes are worthless, probably couldn't sell them for the cost to transport to their new home. But being fully paid off and used as fill ins and standby, Fedex can justify keeping them because when they do fly they are saving the company lots of money due to the service failure's that would result if they didn't fly. I think when any heavy maintenance event is mandated, its put out to pasture.
Regarding the newer older fleet (727-200, DC-10-10) these aircraft would be marginal at best in pax operation due to the razor sharp yields of those operations. The integrated cargo carriers (Fedex, UPS, DHL) make a lot more money on a pound for pound and cube basis than even ordinary freight carreirs. There costs are less a function of the flight than the handling and other services provided to the customer. As a result, fuel, crew and other flight related costs are a smaller portion of the total costs.
That said, Fedex is looking to replace the 727, possibly with 737 or 757. We don't know which, if either, they really favor. My guess is they've been waiting for a major pax carrier to go belly up and buy a fleet at a bargain price. Since none had served its self up, Fedex continues with its fully paid for antiquated fleet of three holers.
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