FedEx Delays Freighters
 

FedEx Delays Freighters
12/22/2008
Thomas L. Gallagher
Web Editor

FedEx will delay delivery of 11 Boeing freighters for up to 17 months.

In December 2008, FedEx reached an agreement with Boeing to defer the delivery of the B777F aircraft, the company said in a footnote to its quarterly report filed last week with the SEC.

On the revised delivery schedule, FedEx will accept delivery of four B777Fs in 2010, as previously agreed. In 2011, Boeing will deliver only four, rather than the 10 originally planned. Five more will arrive in 2012 and two in 2013.

The revised payment schedule will result in the deferral of approximately $275 million of commitments from 2009 to future periods.

The company expects capital expenditures to be approximately $2.4 billion in 2009 and to include spending for aircraft and related equipment at FedEx Express, facility expansion at FedEx Ground and revenue equipment at FedEx Freight.

Traffic World OnLine - Air & Parcel

I heard rumblings about this from a UPS supervisor recently. With the down economy, there's not much demand for China direct USA shipping, and the associated premium costs involved with it. That's supposedly why we weren't jumping to get them right now, but take a wait and see approach (which is what we usually do anyway).

FedEx currently has a 777 vacancy bid open for bidding. Management has canceled the 3 previous bids, maybe this one also?

I'm not sure if this demonstrates managements lack of a grasp of the obvious, or if they're being dealt only half a deck of cards and upper management is dealing from the bottom of the deck? I think if I were management and my chain of command made me look this stupid ... I'd quit?

In short, we're getting jerked around. Maybe because management isn't being honest with us or maybe because they're simply uninformed ... in either case, we deserve better.

Disappointed again,


Mark

Ya think? ...

Okay.

I agree this management team is having difficulty. I'd seriously consider letting a few guys "return to the line".

However, I don't think this is PC's fault.

So, what do we think? Bid stays in place? I think so and we'll just slow roll the next bids. We will still need the guys in the first four planes.

I'm hopeful this is the case, but this isn't good news.

WM

If the bid is cancelled, do you think we might have some retirements? I guess there's no rush to get a 777 LOA.

The bid shows 4 B-777 on the property in May 2010.....shows 0 in May 09

I believe we were supposed to get the first ones in June or July of 09

At the manning levels they're talking about (and the inevitable washouts and management pilots), the bid's 125 crews may indeed just be for the first four aircraft.

I agree with you, Huck. The aquisition schedule still shows delivery dates at PAE of 070109 for 850FD, 090209 for 853FD, 100109 for 851FD, and 110109 for 852FD. Sounds like most of those Captains and FOs will be needed before next peak. Supposedly, the 1st sim in the Gucci building gets FAA approval in Jan or Feb.