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Airlines

Name: FEDEX EXPRESS
7JetSet7 Code: FED
Status: Operational
Region: NORTH AMERICA
City: MEMPHIS
Country: USA
Employees 120000
Web: fedex.com
Email:
Telephone: +1 (901) 369 3600
Fax: +1 (901) 332-3772
Sita: MEMEAFX
Background
(definitions)

Click below for data links:
FED-2002-07-ACCDT
FED-2002-TOP-WLD-F
FED-2003-WLDTOP25
FED-2004-02-NEWS-A
FED-2004-02-NEWS-B
FED-2004-02-NEWS-C
FED-2004-08-ATR42
FED-2005 9 MTHS
FED-2005 INTNL 9 MTHS
FED-2005-01-A380
FED-2005-04-A380F
FED-2005-10-A380F STRATEGY
FED-2005-11-A-A300-600F ORDER
FED-2005-1ST6MTHS TRAFFIC
FED-2006-TOP WLD CARGO
FED-2006-TOP-WLD-CARGO
FED-2007-TOP-WLD- CARGO
FED-2008-TOP 10 CARGO
FED-2009-03-ACCDT
FED-2009-10-777F NEWS
FED-2009-10-777F NEWS-A
FED-2011-10-A
FED-2011-10-B
FED-2011-10-C
FED-2011-10-D
FED-2011-10-E
FED-2011-10-F
FED-2011-10-G
FED-2011-10-H
FED-2011-10-I
FED-2011-10-J
FED-2011-10-K
FED-2011-12 - PANDA EXPRESS
FED-2012-04 - A
FED-2012-04 - B
FED-2012-04 - C
FED-2012-06 FLEET STATUS
FED-2013-04 - UPDATE-A
FED-2013-04 - UPDATE-B
FED-2013-06 - GOODBYE 727
FED-2014-04-COLOGNE AIRPORT-A
FED-2014-04-COLOGNE AIRPORT-B
FED-2014-06-GOOD STUFF
FED-2015-07 - 767F Order.jpg

FORMED IN 1971 AND STARTED OPERATIONS IN 1973. DOMESTIC, REGIONAL & INTERNATIONAL, SCHEDULED & CHARTER, CARGO, JET AIRPLANE SERVICES.

ADDRESS:
PO OX 727
MEMPHIS, TENNESSEE 38194, USA

ADDRESS:
AIR OPERATIONS
3796 LAMAR AVE, 1ST FLOOR
MEMPHIS, TN 38118, USA

USA (United States of America) was established in 1776, it covers an area of 9,363,123 sq km, its population is 280 million, its capital city is Washington DC, and its official language is English.

JANUARY 1996: 4TH QUARTER = +$70.50 MILLION (+$91.63 MILLION) (NET PROFIT). 1995 = +$282.42 MILLION (+$276.94 MILLION).

2 727-200A'S (JT8D-15A), EX-DELTA AIRLINES (DAL) & 1 MD-11 (CF6-80C2D1F), EX-AMERICAN AIRLINES (AAL).

APRIL 1996: (P&W), CHESHIRE, CONNECTICUT CONTRACT FOR (JT9D-7R4) ENGINES FOR 8 A310-200F'S.

ALL CARGO TO MIAMI (MIA), PANAMA CITY, CARACAS, BOGOTA (727-200F).

SUBLEASING 5 747-200F'S (20826; 20827; 21650; 21764; 21841) EX-FLYING TIGERS, TO ATLAS AIR (TLS) UNTIL JANUARY 1998, THEN TO LUFTHANSA (DLH).

JULY 1996: TO CONVERT CURRENT 35 +50 EX-AMERICAN AIRLINES (AAL) & UNITED AIRLINES (UAL) DC-10'S TO "MD-10" (DIGITAL COCKPIT) FOR AVERAGE $7.6 MILLION EACH. DC-10-10 (MD-10) = 446,000 MAXIMUM TAKE OFF GROSS WEIGHT (MTOGW) = 143,500 LB PAYLOAD, OVER 2,000 NM, WHILE -30 = 580,000 MTOGW = 163,000 LB, 3,700 NM.

(http://www.fedex.com).

+1 ORDER (NOVEMBER 1996) MD-11F (CF6-80C2) FOR 21 BY THE END OF 1996.

SEPTEMBER 1996: 11 ORDERS A300-600F'S (CF6-80C2) (1998). 1 MD-11 (CF6-80C2D1F), EX-AMERICAN AIRLINES (AAL), & 1 A310-200F (CF6-80A3), (ILFC) (ILF) LEASED.

OCTOBER 1996: EXPANDS ASIAN ROUTES WITH DIRECT BEIJING AND SHANGHAI TO SUBIC BAY HUB (DC-10F) & HONG KONG (A310). PARIS, FRANKFURT, MOSCOW (VNUKOVO) (727-200F, PARIS CHARLES DE GAULLE (CDG) BASED).

DECEMBER 1996: TO ACQUIRE 14 AMERICAN AIRLINES (AAL) DC-10-10'S (CF6-6K) + SPARE PARTS & COMPONENT OVERHAUL SERVICES IN EXCHANGE FOR 30 727-200 HUSH KITS THROUGH THE END OF 1997. RETAINS RIGHT TO REMAINING 21 DC-10-10'S THROUGH 2003, & (AAL) HAS OPTION FOR +50 MORE KITS. ALL AIRPLANES ARE TO BE CONVERTED BY MCDONNELL DOUGLAS (MDC) TO MD-10 CONFIGURATION (FREIGHTER & COCKPIT).

JANUARY 1997: 4TH QUARTER = +$92.16 MILLION (+$70.50 MILLION). 1996 = 5.4 BILLION (FTM) FREIGHT TRAFFIC.

FEBRUARY 1997: 1 A310-200 (JT9D-7R4D1F), (ILF) LEASED, 2 DC-10-10'S (CF6-6K), EX-AMERICAN AIRLINES (AAL), 1 DC-10-10 (CF6-6D), EX-UNITED AIRLINES (UAL), 1 MD-11 (CF6-80C2D1F), EX-(AAL), 1 A310-300 (CF6-80A3), (ILF) LEASED.

APRIL 1997: TERRANCE NORD VP BASE MAINTENANCE; JOE SHALLCROSS MANAGING DIRECTOR MEMPHIS LINE MAINTENANCE; JEFF CAMPBELL MANAGING DIRECTOR (AOD) CATEGORY MANAGEMENT; & JIM CASBARRO MANAGING DIRECTOR MAINTENANCE OPERATIONS CONTROL CENTER.

STARTS $38 MILLION EXPANSION OF ANCHORAGE HUB "GATEWAY TO ASIA."

MID 1995 TO MID 1996, (DHL) HANDLED 40.7% OF 1.02 MILLION AVERAGE DAILY INTERNATIONAL EXPRESS SHIPMENTS, FEDEX (FED) 20.5%, AND UNITED PARCEL SERVICES (UPS) 15.2%.

8 ORDERS MD-11'S. POSSIBILITY +7. COMMITTED TO 17 ORDERS A300'S & 3 A310'S. 50 DC-10'S FROM AMERICAN AIRLINES (AAL) & UNITED AIRLINES (UAL).

MAY 1997: PROBLEMS WITH ALL-CARGO SERVICE BEYOND JAPAN RIGHTS DESPITE 1952 BILATERAL AGREEMENT.

JUNE 1997: OK FOR TOKYO, NAHA AND OKINAWA BUT JAPAN STILL FAILS TO ADDRESS "BEYOND JAPAN" ISSUE.

$187,500 (FAA) FINE FOR "FAILURE TO PROPERLY MAINTAIN RECORDS FOR 21 AIRPLANE (JT8D) ENGINES," LACKING DOCUMENTATION FOR AIRWORTHINESS DIRECTIVE (AD) COMPLIANCE, TIME OF LAST OVERHAUL, & LACK OF STATUS OF LIFE LIMITED PARTS.

PLANS TO KEEP FLYING 727'S THROUGH 2015. 2 A300F4-600R'S (CF6-80C2A4F) DELIVERIES. 1 DC-10-10 & 1 MD-11, EX-(AAL).

JULY 1997: FISCAL YEAR (FY) 1996 = +$361.2 MILLION (+17%). QUARTER ENDING MARCH 1997 = +$132.6 MILLION.

TO USE FLORIDA WEST ROUTE FOR 727-200F, 49,000 LB PAYLOAD. MEMPHIS & MIAMI (MIA) TO BOGOTA, COLOMBIA, 5/WEEK.

1 DC-10-10 (CF6-6D), EX-UNITED AIRLINES (UAL).

ACCDT: A FEDEX (FED) MD-11F CRASHES ON LANDING AT NEWARK FROM ANCHORAGE. THE MD-11F FLIPPED OVER AND WAS DESTROYED BY FIRE = 2/3 OK.

This (FED) MD-11F crash was attributed to the captain's (FC) "over-control of the airplane during the landing and his failure to execute a go-around from a destabilized flare," according to the USA National Transportation Safety Board (NTSB).

AUGUST 1997: TO OSAKA KANSAI NONSTOP (MD-11F).

FINDS OUT THAT 727F AIRWORTHINESS DIRECTIVE (AD) MODIFICATIONS PREVIOUSLY ESTIMATED AS $100,000, ARE NOW $750,000, WITH REINFORCEMENTS NEEDED TO ACCOMMODATE WEIGHTS. THEREFORE (FED) IS PROPOSING TO REPLACE 160 727F'S WITH ALL-CARGO TURBOPROPS MANUFACTURED BY ISRAELI INDUSTRIES (IAI), WHICH ARE LARGER THAN AYRES LOADMASTER NOW UNDER DEVELOPMENT FOR FEDEX (FED), & CAPABLE OF CARRYING 5 STANDARD-SIZE CARGO CONTAINERS ABOUT 1,100 MILES.

7 DC-10-10'S (CF6-6K), 5 EX-AMERICAN AIRLINES (AAL); (CF6-6D), 5 EX-UNITED AIRLINES (UAL), 1 EX-ASIANA (AAR).

SEPTEMBER 1997: 1ST AROUND-THE-WORLD CARGO FLIGHT FROM INDIANAPOLIS, FEDEX HUB IN PARIS, DUBAI, MUMBAI, BANGKOK, SUBIC BAY, & ANCHORAGE.

NONSTOP TO OSAKA.

OPENED $250 MILLION, 230,000 SQ FT, SORTING FACILITY IN ALLIANCE AIRPORT FORT WORTH, TEXAS.

A300F4-605R (777) NAME IS "AMRIT." MD-11F (48419) NAME IS "JOSHUA." A310-203F'S (217 NAMED "TREYDN" & 362 "ZACKERY").

OCTOBER 1997: 127,000 EMPLOYEES.

TO START CONSTRUCTION NEXT MAY 1998, OF $50 MILLION, 189,000 SQ FT, LATIN AMERICAN/CARIBBEAN HUB, ON NORTH SIDE OF MIAMI (MIA) INTERNATIONAL AIRPORT, ABLE TO SORT 12,000 PIECES/HOUR & HANDLE 11 WIDE BODIES.

TO PANAMA.

BUYS DC-10-10 (46517) & MD-11 (48436) FROM AMERICAN AIRLINES (AAL). 1 DC-10-10 (47802) EX-CONTINENTAL AIRLINES (CAL), FROM ASIANA (AAR), WITH "DIMENSION AVIATION" TO CONVERT TO FREIGHTER.

NOVEMBER 1997: FRED SMITH IS ELECTED CHAIRMAN OF (IATA) (ITA) FOR 1997 - 1998.

FEDEX (FED) SPONSORS TRAINING PROGRAM FOR 15 AIR TRAFFIC CONTROL (ATC) CONTROLLERS AT EMBRY RIDDLE AERO UNIVERSITY FOR CHINESE, IN AN EFFORT TO IMPROVE SAFETY CAPABILITIES AT BEIJING INTERNATIONAL AIRPORT.

LETTER OF INTENT (LOI) FOR 2 SABENA (SAB) A310-200'S (303; 313), (ILF) LEASED, TO BE CONVERTED TO FREIGHTER.

DECEMBER 1997: 4TH QUARTER = +$107 MILLION (+3%): PACKAGE VOLUME +10%, REV/PACKAGE +4.7%.

OPENS 192,000 SQ FT SORTING & DISTRIBUTION FACILITY IN DUBAI (INCLUDING 10,000 SQ FT LOGISTIC SERVICES).

A310-203F (353 - "BREANNA"). A300F4-605R (780 - "MARK"). DC-10-10 (46505), EX-AMERICAN AIRLINES (AAL). 2 DC-10-10'S (46601; 46611), EX-UNITED AIRLINES (UAL).

JANUARY 1998: A310-203F (364 - "CONNER"). 1 DC-10-10, EX-UNITED AIRLINES (UAL). 1 MD-11 (CF6-80C2D1F), EX-AMERICAN AIRLINES (AAL).

FEB 1998: $100 MILLION PROGRAM, TO EQUIP ITS 334 AIRPLANE FLEET WITH (EGPWS) & (TCAS) II, UPGRADABLE TO ADS-B NAV/COLLISION-AVOIDANCE TECHNOLOGY WITH 95% BY 2002.

727-233F (21625 - "MARC"). TO ACQUIRE 4 MD-11'S (SWS) BOUGHT FROM (LTU) IN 2002.

MARCH 1998: 1 A310-203 (162 - "SEINA"). RECONFIGURATION OF DC-10F'S TO DC-10F'S FLIGHT DECK MODIFICATIONS BY SWISSAIR TECHNICS (SWS). OTHER DC-10 CONVERSION WORK TO BE DONE AT NEWLY ACQUIRED BY BOEING AEROSPACE SUPPORT CENTER, KELLY AIRFORCE BASE (AFB) NEAR SAN ANTONIO, TEXAS.

DC-10-10 (46613), EX-UNITED AIRLINES (UAL). A310-203 (297) BOUGHT FROM (ILFC) (ILF).

APRIL 1998: LAST QUARTER = +$97.4 MILLION (+$61 MILLION) AFTER MERGING WITH, BY ACQUISITION OF CALIBER SYSTEMS.

127,000 EMPLOYEES. (http://www.fedex.com).

1ST QUARTER MAINTENANCE EXPENSES = $241.72 MILLION (7.77% TOTAL OPERATING EXPENSES).

BUYS REMAINING 7 MD-11'S FROM AMERICAN AIRLINES (AAL). 1 DC-10-10 ) (46709) EX-(AAL). TO ACQUIRE 20 MD-11'S THROUGH FLIGHT LEASE LTD, A SUBSIDIARY OF SAIRGROUP, OF SWISSAIR (SWS), AND +3 ORDERS (MARCH 1999) MD-11'S. LAST 3 TO REPLACE 3 MD-11'S, EX-AMERICAN (AAL), NOW DELAYED UNTIL 2003. A310-222 (303) BOUGHT FROM (ILFC) (ILF). DC-10-10 (CF6-6D), EX-UNITED AIRLINES (UAL).

MAY 1998: TO OPEN 5TH NATIONAL HUB AT PIEDMONT TRIAD INTERNATIONAL AIRPORT, GREENSBORO, NORTH CAROLINA, 1 MILLION SQ FT, FOR $300 MILLION, IN 3RD QUARTER 2003.

JUNE 1998: DC-10-10F (46625 - "CHANDRA"). 1 A300F4-600R. 1 MD-11 (CF6-80C2D1F), EX-AMERICAN AIRLINES (AAL).

JULY 1998: PARENT COMPANY, FDX CORPORATION, FISCAL YEAR (FY) LAST QUARTER = +$170.7 MILLION (-$40.4 MILLION). (FY) 1997 = +$582.7 MILLION (EXCLUDING CALIBER MERGER EXPENSES (+$371.1 MILLION)).

INTERNATIONAL AIR FREIGHT MARKET, REFLECTS "INDUSTRY OVERCAPACITY."

1997 WORLD OPERATOR COMPARISONS:
EMPLOYEES (1000): 1 FED 94; 2 UAL 92; 3 AAL 86; 4 DAL 63; 5 DLH 58; 6 BAB 53; 7 NWA 48; 8 USA 42; 9 CAL 40; 10 AFA 36.

NET ($ MILLION): 1 AMR 985 (1,016); 2 UAL 949 (533); 3 DAL 934 (248); 4 BAB 754 (876); 5 SIA 670 (731); 6 NWA 597 (536); 7 FED 583 (371); 8 USA 494 (263); 9 DLH 482 (371); 10 CAL 385 (319).

(FTK) FREIGHT TRAFFIC (BILLION): 1 FED 9.3; 2 GRC 6.5; 3 KAL 5.7; 4 UPS 5.4; 5 AFA 5.0; 6 SIA 4.8; 7 JAL 4.2; 8 BAB 3.9; 9 KLM 3.9; 10 CAT 3.6; 11 NWA 3.3; 12 UAL 3.2; 13 CHI 2.8; 14 EVA 2.7; 15 DAL 2.5; 16 CLX 2.4; 17 AAL 2.4; 18 PAO 1.9; 19 SWS 1.8; 20 NCA 1.8; 21 MTH 1.8; 22 TII 1.6; 23 ALI 1.5; 24 EAF 1.4; 25 CKF 1.4. 26 AFC 1.4.

747-245F (20827) RETURNED FROM ATLAS AIR (TLS).

AUGUST 1998: RON WICKENS VP ENGINEERING & QUALITY ASSURANCE (QA), TO VP (AOD) STRATEGIC PROJECTS. DON BARBER VP AIRCRAFT LINE MAINTENANCE, TO VP ENGINEERING & QUALITY ASSURANCE. DAVE SLONIM MANAGING DIRECTOR BASE MAINTENANCE, TO VP AIRCRAFT LINE MAINTENANCE.

LAST QUARTER = +$122 MILLION (+$165 MILLION FROM (UPS) STRIKE) (+$113 MILLION).

A300F-605R (791) DELIVERY.

SEPTEMBER 1998: DC-10-10 (46605), EX-UNITED AIRLINES (UAL), TO WICHITA, FOR CONVERSION TO FREIGHTER, TO BE COMPLETED BY MID-1999. CONVERSIONS ALSO DONE AT AERONAVALI/ST MOBILE AEROSPACE/BOEING (TBC) SUPPORT CENTER, TEXAS. A300F-605R (792) DELIVERY.

OCTOBER 1998: JIM CASBARRO, MANAGING DIRECTOR QUALITY ASSURANCE/MAINTENANCE & ENGINEERING. SCOTT OGDEN, MANAGING DIRECTOR MAINTENANCE PLANNING, CONTROL, PERFORM.

1997 = +$420.5 MILLION (+$361.2 MILLION) (NET PROFIT). 3RD QUARTER = +$115.697 MILLION (+$153.017 MILLION): $259.4 MILLION MAINTENANCE COSTS (8.13% OF OPERATING EXPENSES).

105,649 EMPLOYEES (TOTAL +1/2 PART).

NOVEMBER 1998: CONTRACT FOR ATLAS AIR (TLS) 1 747-200F, & 2 747-400F'S WET-LEASED. 727-22F (18872 "CLAYTON"), 727-247F (21327 "MONIKA"), DC-10-10F (46624 "RASIK"), A300F4-605R (792 "ALLISON"). A300F4-605R (794 - "TIERNEY"). SHORTS 360-300 (PT6A-67R) DELIVERY.

DECEMBER 1998: LAST QUARTER = +$183 MILLION (+$150 MILLION).

10 ORDERS (JANUARY 1999) SHORTS 360-300, LEASED. 3 SHORTS 360-300 (3748; 3749; 3753), LYNRISE AIR LEASED, OPERATIONS BY EMPIRE AIRLINES. 747-283BF (21575), POLAR AIR CARGO (PAO) WET-LEASED. SHORTS 360-300 (PT6A-67R) DELIVERY.

JANUARY 1999: DC-10-10 (MD-10F) (46629, N395FE), EX-UNITED AIRLINES (UAL).

FEBRUARY 1999: 1998 = 6.59 BILLION (FTM) FREIGHT TRAFFIC (6.17 BILLION).

A300F4-605R (793 "TY"); DC-10-10F (46601 "JOEY"). CANCELS 1 747-200F, (TLS) WET-LEASE, BUT CONTINUES 2 747-400F'S, ATLAS AIR (TLS) WET-LEASED.

MARCH 1999: 717/46 ORDERS (611 DELIVERED) FOR 727 STAGE 3 HUSHKITS.

LAST QUARTER = +$78 MILLION: DECLARED 2-FOR-1 STOCK SPLIT.

TO EXPAND SORTING OPERATIONS FACILITY AT ORLANDO, WITH $8.5 MILLION, TO BUILD, $6 MILLION TO EQUIP IT, FOR 110,000 SQ FT BUILDING, 9,000 PACKAGES/HOUR, 4 FLIGHTS/DAY. AIRPORT TO SPEND $15.7 MILLION FOR TAXIWAY, APRON AND OTHER SITE WORK.

2 DC-10-10'S (46615; 46616), EX-UNITED AIRLINES (UAL). 1 MD-11F (48791) DELIVERY.

APRIL 1999: MD-11F (48436, N584FE "JEFFREY WELLINGTON"). SHORTS SD3-60 (300) (3742, N742CC), OPERATIONS BY EMPIRE. DC-10-10 (46621 "JOEL" N387FE). A310-203F (283 "KATELIN" N443FE) DELIVERY.

MAY 1999: MD-11 (636) DELIVERY. A300B4-605F (799, N681FE), 2 DC-10-10'S (46630, N1831U, EX-(UAL); 46989, N130AA, EX-(AAL).

JUNE 1999: LETTER OF INTENT (LOI) FOR +19 MD-11'S PASSENGER TO FREIGHTERS CONVERSIONS, TO BOEING AIRPLANE SERVICES, (BAS) LONG BEACH. +25 ORDERS AYRES LOADMASTER LM200 (LHTEC CTP800) FOR TOTAL 75/175. 22ND AND LAST MD-11 DELIVERY FROM LONG BEACH. 2 MD-11'S (636, N621FE; 638, N623FE).

JULY 1999: LAST QUARTER = +$221 MILLION (+30%). FISCAL YEAR (FY) 1998 ENDING MAY 1999 = +$631 MILLION (+26%).

2 DC-10-10'S (46614, 46634), EX-(UAL). DC-10-10F (46608, N370FE) CONVERTED.

AUGUST 1999: DC-10-10 (46700), EX-(AAL) & AAR (AFD). A300F4-605R (802, N684FE, "DANIEL") DELIVERY. DC-10-10 (46930, N167AA), EX-(AAL). 1 ORDER (2000) A310-222.

SEPTEMBER 1999: GAINS PRESTWICK - PARIS, 5TH FREEDOM RIGHTS.

OPENS $200 MILLION LARGEST HUB (77,000 SQ M) OUTSIDE USA, AT PARIS CHARLES DE GAULLE (CDG) AIRPORT, TO START FEDEX, EURO-ONE SERVICE, NEXT-BUSINESS-DAY DELIVERY, IN 38 COUNTRIES. NEW HUB TO EMPLOY 3,000 OVER NEXT 6 YEARS. STARTS BY HANDLING 24,000 PACKAGES/HOUR, & 25 AIRPLANES SIMULTANEOUSLY. IN 6 YEARS, TO INCREASE TO 60,000/HOUR.

2 DC-10-10F'S (46602, N366FE; 46606, N368FE "CINDY"), CONVERTED TO MD-10'S. 2 A310-200'S (267, EX-HELIOPOLIS (HEA), & 278 EX-SUDAN (SUD)), FOR CONVERSION TO FREIGHTER. A300F4-605R (803, N685FE) DELIVERY.

OCTOBER 1999: PLANS BY JUNE 2000, TO STATION 5 A310-200F'S IN EUROPE, AND MOVE BACK 6 727-200F'S, TO USA.

FEDEX CORPORATION SENIOR MANAGEMENT CHANGES: DAVID BRONCZEK (CEO), TO REPLACE THEODORE WEISE (RETIRES FEBRUARY 2000 MICHAEL DUCKER EXECUTIVE VP INTERNATIONAL. DAVID REBHOLZ EXECUTIVE VP OPERATIONS & SYSTEMS SUPPORT.

ACCDT: FEDEX (FED) MD-11F (48419) OVERSHOOTS RUNWAY ON LANDING, AND PLUNGES INTO SUBIC BAY = 2 FLIGHT CREW (FC) MINOR INJURIES, AIRPLANE DESTROYED & WRITTEN OFF (W/O).

IN NOVEMBER 1999, SUBIC BAY - SHENZEN, CHINA (DC-10F/MD-11F).

727-225F (21449, N467FE "JOY"). 3 DC-10-10'S (46523; 46938; 46943), EX-(AAL). A300F4-605R (804, N686FE) DELIVERY. 1 A310-222 (278, N454FE) DELIVERY.

NOVEMBER 1999: LAUNCHED AIR-EXPRESS SERVICE TO CHINA'S LARGEST EXPORT CITY, SHENZHEN, INCLUDING OPENING A DEDICATED EXPRESS HANDLING FACILITY AT HUANGTIAN AIRPORT, SHENZHEN, THE 1ST OF ITS KIND IN CHINA.

727-25F (18283) RETIRED. HAS RECEIVED 734/38 ORDERS (686 DELIVERED) FOR 727 STAGE 3 HUSHKITS. 2 DC-10-10F'S (46605, N367FE; 46629, N1830U), AFTER CONVERSION.

DECEMBER 1999: 150,823 EMPLOYEES (INCLUDING 3,430 FLIGHT CREW (FC)).

BRUCE WHITESTONE MANAGING DIRECTOR MD-10 PROGRAM, RESIGNS TO JOIN INTREPID AVIATION (INL).

JANUARY 2000: SELECTS JOUVE DATA MANAGEMENT FOR INTEGRATING ITS AIRPLANE TECHNICAL DATA INTO SINGLE, AIRPLANE TECHNICAL INFORMATION SYSTEM (ATIS), & JOUVE, LICENSED AIRGTI SOFTWARE TO DISTRIBUTE ONLINE MAINTENANCE MANUALS/REVISIONS, & SELECTED CREATIVE CONCEPTS, TO PROVIDE DOCUMENTUM SYSTEM, AS DATA REPOSITORY.

1 DC-10-10 (48262), EX-UNITED AIRLINES (UAL). DC-10-10F (46613, N375FE) CONVERTED TO FREIGHTER.

FEBRUARY 2000: OPENS NEW 106,750 SQ FT FACILITY AT LOUISVILLE INTERNATIONAL, KENTUCKY.

2 ORDERS (OCTOBER 2005) A310-324'S (378; 549).

MARCH 2000: TOP CARGO OPERATORS AT MIAMI IN 1999 (1000) TONS:
1 TLS 260 (+13.7%); 2 AAL 171 (-6.55); 3 CHA 141 (-1.9%); 4 ARW 119 (+9.4%; 5 TMP 118 (+8.3%); 6 FNE 112 (-29.7%); 7 CKF 92 (-34%); 8 UPS 70 (+20.3%); 9 UAL 58 (-6.4%); 10 AMJ 44 (-46.5%); 11 LAN 36 (+32.4%); 12 TAC 46 (+100%); 13 DHL 36 (-9.5%); 14 FED 32 (-46.75); 15 STZ 26 (+2.1%).

ROBERT CARTER EXECUTIVE VP INFORMATION TECHNOLOGY AND CHIEF INFORMATION OFFICER, REPLACES DENNIS JONES WHO RETIRED.

EXPECTS ITS INTERNET SERVICES TO BOOST BUSINESS BY +20% IN 2000. CURRENTLY, MOVES 220,000 LBS OF CARGO/DAY.

1ST OF 75 ORDERS AYRES LOADMASTERS IS 12 TO 18 MONTHS BEHIND SCHEDULE, AND IS NOW EXPECTED IN DECEMBER 2001.

APRIL 2000: 156,386 EMPLOYEES.

727-25F (18283, N511FE), SOLD TO BF GOODRICH (TRAMCO) (BFG).

JUNE 2000: JUAN CENTO PRESIDENT LATIN AMERICA & CARIBBEAN DIVISION.

2ND QUARTER = +$245 MILLION (+11%). FISCAL YEAR (FY) 1999 = +$688 MILLION (+9%).

GLOBAL EXPRESS NETWORK SHOWED STRONG GROWTH, PARTICULARLY IN ASIA.

JULY 2000: IN LATE 2000, PARIS - SUBIC BAY, PHILIPPINES (MD-11F 5/WEEK).

150,000 EMPLOYEES.

1999 TOP WORLD OPERATORS:
NET PROFIT ($ MILLION): 1 DAL 1,285; 2 UAL 1,235; 3 AMR 985; 4 SIA 737; 5 DLH 633; 6 SWA 474; 7 CAL 455; 8 FED 442; 9 AFA 340; 10 KLM 324; 11 NWA 300.

EMPLOYEES (1000): 1 UPS 308; 2 FED 156; 3 UAL 96.7; 4 AAL 86.1; 5 DAL 72; 6 DLH 66.2; 7 DHL 60.

(FTK) FREIGHT TRAFFIC (BILLION): 1 FED 10.31; 2 LUB 7.07; 3 UPS 6.02; 4 KAL 5.96; 5 SIA 5.48; 6 AFA 4.73; 7 BAB 4.54; 8 JAL 4.42; 9 KLM 4.15.

AUGUST 2000: JOINS E-COMMERCE VENTURE, CALLED "aeroexchange" FOR AIRPLANE PARTS, MAINTENANCE SERVICES, & GENERAL SUPPLIES, WITH 12 AIRLINES: (CAT); (DLH); (SIA); (NWA); (ACN); (ANA); (AMW); (SAS); (KLM); (AUL); & (ANZ).

1999 = +$688 MILLION (+$631 MILLION): 10.31 BILLION (FTK) FREIGHT TRAFFIC (+3.95); 150,000 EMPLOYEES (+3.4%).

DC-10-10 (46519, N119AA), EX-AMERICAN AIRLINES (AAL).

SEPTEMBER 2000: TO BUILD NEW INFORMATION TECHNOLOGY (IT) CENTER IN COLORADO SPRINGS TO SUPPORT E-COMMERCE INITIATIVES, & LOGISTICAL SERVICES, WORKING WITH KOLL CORPORATION DEVELOPMENT, DALLAS.

2 727-25F'S (18273; 18274), & 1 727-22F (18870), RETIRED AT MOJAVE.

OCTOBER 2000: LEASES LOCKHEED HERCULES FROM SAFAIR (SFA), FOR EUROPEAN SERVICES. 2 727-100'S (19289; 19852) RETIRED AT MOJAVE. 1 A310-324 (539, N823PA), BOUGHT FROM MAGELLAN AIR SERVICES.

NOVEMBER 2000: ACQUIRES AMERICAN FREIGHTWAYS FOR $1.9 BILLION. WILL CONTINUE TO OPERATE INDEPENDENTLY FROM FEDEX-OWNED VIKING FREIGHT.

2 DC-10-10'S (46939; 48261), EX-UNITED AIRLINES (UAL).

DECEMBER 2000: LAST QUARTER = +$194 MILLION (+$171 MILLION). AVERAGE DAILY AIR VOLUME = 3.33 MILLION PACKAGES/7 MILLION LBS: 4.7 MILLION USA; 2.2 MILLION INTERNATIONAL (3.25 MILLION/7.6 MILLION LBS: 5.1 MILLION USA; 2.6 MILLION INTERNATIONAL).

CONTRACT TO BOEING AIRPLANE SERVICES (BAS) TO CONVERT 19 MD-11'S TO FREIGHTERS. 5 ORDERS (FEBRUARY 2002) A300-600'S (PW4158) (358; 361; 365; 388; 417), EX-KOREAN AIR (KAL), INTREPID LEASED, CONVERT TO FREIGHTERS BY EADS (AIRBUS) (EDS), DRESDEN. MD-11 (48527) EX-AMERICAN AIRLINES (AAL). 2 DC-10-10'S (48260; 48263), EX-UNITED AIRLINES (UAL). 1 A300B4-622R (477, N721FD), EX-INTREPID AVIATION (INL).

JANUARY 2001: USA POSTAL SERVICES (USPS), AND LONGTIME RIVAL, FEDEX (FED), HAVE NEW AGREEMENT TO WORK TOGETHER, WITH (FED) CARRYING (USPS) MAIL ON ITS AIRPLANES, AND (USPS) PLACING (FED) COLLECTION BOXES, IN ITS POST OFFICES TO "LEVERAGE TWO GREAT NETWORKS: THE EXTENSIVE RELIABILITY OF (FED) AIRPLANES, & THE COAST-TO-COAST RETAIL PRESENCE OF THE (USPS)," POSTMASTER GENERAL WILLIAM HENDERSON STATED. (USPS) TO PAY (FED) $6.3 BILLION OVER 7 YEARS, TO CARRY ITS EXPRESS MAIL, & PRIORITY MAIL, AS WELL AS SOME 1ST CLASS MAIL.

10/20 ORDERS (FEBRUARY 2008) A380F'S. A380F CAN CARRY 39,000 CU FT OF CARGO 6,000 NM, COMPARED TO THE MD-11'S 19,000 CU FT, FOR 4,000 NM, AND 747-400'S 22,000 CU FT, & 747X'S 28,000 CU FT. COMPARED TO THE A380 PASSENGER VERSION OF 560 TONS TAKEOFF WEIGHT, A380F IS 590 METRIC TONS AND OPTIONS UP TO 600 TONS. GROSS PAYLOAD 330,000 LBS, & MAXIMUM RANGE 5,650 NM, WITH CRUISE SPEED OF 656 MPH. 1 A310-222 (318), EX-AIR DJIBOUTI (DJB)/AFIS.

FEBRUARY 2001: 3 MD-11'S (48458; 48470; 48471), EX-CHINA AIRLINES (CHI), 1 (GATX) (GAX) LEASED. TO BE CONVERTED TO FREIGHTERS BY AERONAVALI (ARP). ANCRA TO SUPPLY CARGO SYSTEMS. 2 DC-10-30F'S (47812; 47813), UNITED AIRLINES (UAL) LEASED.

MARCH 2001: 6 ORDERS (JUNE 2001) A310-203'S (316; 326; 335; 355; 369; 454), EX-AIR FRANCE (AFA), EADS (EDS) CONVERSIONS TO FREIGHTERS.

APRIL 2001: HUBS AT BRUSSELS NATIONAL, HONG KONG, AND PARIS CHARLES DE GAULLE (CDG).

DONATED "B" CHECK ON ORBIS INTERNATIONAL (ORS) DC-10-10 FLYING HOSPITAL AT LOS ANGELES (LAX).

CONTRACT TO ATLAS AIR (TLS), FOR 3 ORDERS 747-200F'S, FOR 2001-09 TO 2001-12 WET-LEASED. 1 DC-10-10F (46634, N1841U) CONVERTED. 1 MD-11 (48458, N489GX), EX-(GAX). 1 A310-203 (316, N431FE), EX-AIR FRANCE (AFA).

MAY 2001: 1 CESSNA 208B (52, N948FE) WRITTEN OFF (W/O). 2 727-25'S (18283; 18287) & 2 727-22F'S (19144; 19145) PARTED OUT.

JUNE 2001: 1 MD-11 (527-48551, N1761R) & 1 DC-10-10 (56-46522), EX-AMERICAN AIRLINES (AAL).

JULY 2001: FISCAL YEAR (FY) 2000 = +$584 MILLION (+$688 MILLION): 3.27 MILLION EXPRESS PACKAGES AVERAGE DAILY VOLUME (3.26 MILLION), INTERNATIONAL PRIORITY SERVICE (+8%).

CITING WEAK USA ECONOMY, AND FALLING DEMAND FOR DOMESTIC EXPRESS SERVICES, FEDX (FED) CURTAILS ITS MD-10 CONVERSION PROGRAM, AND DEFERS THE DELIVERY OF A300F, AND MD-11F FREIGHTERS. ALSO, CANCELED 75/275 ORDERS FOR AYRES LOADMASTER FEEDER FREIGHTERS, EFFECTIVELY KILLING THE PROGRAM. DECIDES TO NOT COMPLETE THE LAST 29 OF PLANNED 118 DC-10/MD-10 CONVERSIONS, INSTEAD PARTING THEM OUT, AND WRITING OFF $93M. 2 DC-10-10'S (46968; 46969), EX-UNITED AIRLINES (UAL).

AUGUST 2001: 2 727-25'S (18271; 18273) PARTED OUT.

SEPTEMBER 2001: DC-10-10 (46633), EX-UNITED AIRLINES (UAL). MD-11 (48553) EX-AMERICAN AIRLINES (AAL). A310-222F (318, N456FE) DELIVERY, AFTER CONVERSION.

OCTOBER 2001: NISSAN NORTH AMERICA GIVES FEDEX (FED) EXCLUSIVE CONTRACT FOR APPROXIMATELY 2.9 MILLION PACKAGES/YEAR EXPRESS DOCUMENTS, AIR FREIGHT, AND SMALL PACKAGE, GROUND SHIPMENTS.

727-25 (18278) PARTED OUT AT MOJAVE. 2 727-22'S (18864; 18868), & 2 727-25'S (18280; 19720) PARTED OUT, BY MEMPHIS GROUP. 727-25F (18286) RETURNED FROM MORNINGSTAR (BWL). DC-10-10 (46635), EX-(UAL). 727-25F (18282) DONATED TO TENNESSEE TECHNOLOGY CENTER.

NOVEMBER 2001: DROPS PLAN TO BUY 15 SWISSAIR (SWS) MD-11'S. 727-27C (19110) PARTED OUT.

DECEMBER 2001: 7-YEAR, $6.3 BILLION, USA POSTAL SERVICE CONTRACT (NON-EXCLUSIVE), TO PROVIDE 3.5 MILLION LBS OF DAILY AIRLIFT CAPACITY (30 DC-10F'S) IN USA, USING AIRPLANES THAT ARE IDLE, DURING THE DAY.

727-25 (149-18282, /65 74 61 N510FE) DONATED TO MIDDLE TENNESSEE STATE UNIVERSITY.

JANUARY 2002: AIR CARGO MANAGEMENT GROUP STATES GLOBAL, AIR FREIGHT TRAFFIC, GREW +8% IN 2000, BUT DECLINED -5% IN 1ST 6 MONTHS OF 2001, AND EVEN FURTHER AFTER "9/11," TO REACH -7 TO -10% FOR 2001, BUT PROJECTS 2002, TO REGAIN 1999 LEVELS.

4TH QUARTER = +$194.88 MILLION: MAINTENANCE COSTS $340.86 MILLION (+8.8%). 2001 = +$710 MILLION (+$584 MILLION).

FEBRUARY 2002: EUR 83 MILLION BOEING AIRPLANE MODIFICATION SERVICES CONTRACT TO AERONAVALI (ARP) TO INSTALL ADVANCED COMMON FLIGHT DECK (ACF) ON UP TO 52 FEDEX DC-10-10/30F'S.

APRIL 2002: 144,000 EMPLOYEES.

MAIN BASE: MEMPHIS INTERNATIONAL (MEM).

HUBS: OAKLAND INTERNATIONAL (OAK); MIAMI INTERNATIONAL (MIA); INDIANAPOLIS INTERNATIONAL (IND); FORT WORTH ALLIANCE (AFW); SUBIC BAY (SFS); HONG KONG INTERNATIONAL (HKG); ANCHORAGE INTERNATIONAL (ANC); NEWARK INTERNATIONAL (EWR); BRUSSELS INTERNATIONAL (BRU); AND PARIS CHARLES DE GAULLE (CDG).

2 A310-203'S (326, N432FE; 355, N434FE) bought from Air France (AFA). 727-22F (19086, N148FE) parted out.

June 2002: 2001 Top World Cargo Operators (Billion) (FTK):
1 FED 11.05; 2 LUB 7.08; 3 UPS 5.96; 4 SIA 5.88; 5 KAL 5.57; 6 AFA 5.12; 7 KLM 4.64; 8 JAL 4.19; 9 BAB 4.033; 10 CHI 4.030; 11 NCA 3.93; 12 CAT 3.89; 13 CLX 3.77; 14 EVA 3.28; 15 UAL 2.80; 16 NWA 2.79; 17 AAL 2.56; 18 MTH 2.40; 19 AAR 2.38; 20 DAL 2.31; 21 MAS 1.84; 22 SWS 1.79; 23 TII 1.67; 24 QAN 1.57; 25 AHK 1.55.

2 A300B4-622's (479, N722FD; 543, N723FD) bought from Intrepid (INL). MD-11 (48552), ex-American Airlines (AAL) delivery.

July 2002: $5 Billion, 10/10 orders A380F's. Selects (GE-P&W) (GP7200) engines, plus a 20-year maintenance agreement.

ACCDT: FedEx (FED)727-232AF (JT8D-15) (1067-20866, 52 43 N497FE W/O) crashed on landing, 3,100 ft short of 8,000 ft runway, at Tallahassee, Florida, Regional Airport, on flight from Memphis. The airplane burst into flames = all 3 Flight Crew (FC) injured, 2 serious & 1 minor. The National Transportation Safety Board (NTSB) stated that the accident probably occurred due to "the failure of the captain and first officer to establish and maintain a proper glide path during the night visual approach."

August 2002: Selects Spirent Systems, Kansas, integrated, airplane information, network, and software application suite, for 88 A300F/A310F's, to interface with (ARINC) databuses, for systems monitoring, & communications. Each airplane will be equipped with a server, Local Area Network (LAN), multiple workstations, and airline, network interface capabilities. The e-system, will enable airplane system monitoring, user-directed business, and operational software tools, and for real-time networking, between airplanes, and ground based, info systems.

1 A300B4-622 (361, N717FD), bought from Intrepid. DC-10-10F (46633, N358FE), redelivered after conversion to freighter.

September 2002: FedEx (FED) and (UPS) have continued their allegations to the Department of Transport (DOT), that rival (DHL), is controlled by the German post office (Deutsche Post), and should not be classified, as a USA certificated carrier.

2 MD-10-10F's (46989, N566FE; 46636, N360FE) converted.

October 2002: Expects its A380's to carry 300,000 lbs payload on Memphis - Paris (CDG) (vs 165,000 on its MD-11F'S); 280,000 lbs on Osaka Kansai - Memphis (vs 104,000 lbs); and 220,000 lbs on Hong Kong - Memphis (vs 45,000 lbs).

Signs 25-year lease for its new sorting hub at Greensboro, to open in 2007.

(FED) is awarded a $327.6 Million contract for Programs Teaming Arrangement, by USAF Air Mobility Command, to provide charter combi passenger & cargo international airlift services.

727-22C (19197), parted out. 2 DC-10-10's (46707; 46708), ex-American Airlines (AAL). 3 MD-11F's (48552; 48596; 48597), converted. A300B4-622F (543, N723FD) converted.

December 2002: MD-10-10F (46624, N390FE), converted. A300B4-622 (365, N718FD), bought from Intrepid (INL).

January 2003: Buys 8 ATR 42-320's from Continental Airlines (CAL) to use in support of its domestic feeder network. When converted to freighters, can carry a maximum payload of 12,000 lb and meet Stage 3 noise restrictions.

2 DC-10-30F's (47908; 47870), returned to lessor.

February 2003: 727-25F (18285) & 727-22F (19080) scrapped. 2 DC-10-10's (46984; 47828) bought from American Airlines (AAL). A300B4-622F (358, N716FD) converted.

March 2003: 120,000 employees.

2 727-100F's (18285; 9080), sold to Memphis Group for part out. 727-100F (19853) donated to Oakland International Airport Fire Department for safety training. A300B4-622F (361, N717FD), converted to freighter. ATR 42-320 (172, N901FX), bought from ExpressJet.

April 2003: 727-100F (19814) donated to (ISTAT) Foundation for Embry Riddle campus, Prescott, Arizona. 727-25F (18286), donated to Florida Community College.

June 2003: Aeronavali (ARP), Italy donates "B" check on Orbis (ORS) flying eye hospital DC-10-10, and Fedex (FED) donated parts.

(FED) 2002 = +$830 Million (+$710 Million): 3.12 Million (+1%) packages/$17.69 yield (3.08 Million/$16.96) Average Daily Volume; +9% International priority volume.

2002 TOP 25 WORLD FREIGHT CARRIERS - (Billion) - (FTK):
1 (FED) 13.20; 2 (LUB) 7.16; 3 (UPS) 6.62; 4 (KAL) 6.25; 5 (SIA) 6.08; 6 (AFA) 4.87; 7 (CAT) 4.85; 8 (CHI) 4.60; 9 (JAL) 4.39; 10 (CLX) 4.16; 11 (BAB) 4.12; 12 (KLM) 3.99; 13 (EVA) 3.28; 14 (NWA) 3.24; 15 (AAL) 2.93; 16 (UAL) 2.79; 17 (AAR) 2.75; 18 (NCA) 2.21; 19 (POA) 1.97; 20 (EAD) 1.96; 21 (MAS) 1.92; 22 (BEJ) 1.88; 23 (TII) 1.824; 24 (DAL) 1.823; 25 (ACN) 1.58.

July 2003: Department of Transport (DOT) selected 6 carriers to operate cargo services between Hong Kong and 3rd country cities in conjunction with USA - Hong Kong services: (FED), (UPS), (EVR), (KAC), (NWA), & (PAO).

MD-10-10F (47829, N134AA) converted. 727-25 (18286) donated to Florida Community College, Jacksonville.

August 2003: 727-22F (18866) donated to the Indianapolis Fire & Rescue. 727-116C (19814), sold to (ISTAT) Foundation for Pima Community College.

September 2003: A300B4-622F (417, N720FD), converted.

October 2003: Orders Enhanced Vision System (EVS) from Albit Systems, Haifa, Israel, as part of a new Head-Up Display (HUD) being developed by Honeywell Air Transport Systems. The new (HUD) which will use (LCD) projection technologies, will be certified and installed on (FED)'s wide body fleet in 4th Quarter 2006. The (EVS) employs an infra-red sensor that presents an image projected on any raster-video-capable (HUD) and head-down display, "providing the pilot with a forward-looking picture overlaying the outside view in a conformal manner."

The European Commission (EC) asked the Danish government to investigate the ties between (UPS) and Star Air (SDK). This was instigated by a complaint from Deutsche Post. It wants the Danish authorities to make sure (SDK) is a European-controlled entity. Although (SDK) is a subsidiary of Danish shipping group, Moeller-Maersk, the (EC) cites complaints claiming almost all of its economic activities are generated by (UPS), which allegedly is responsible for (SDK)'s fleet, crews, technical support and maintenance. Should the Danish government or the (EC) decides this relationship constitutes effective control, the authorities could revoke (SDK)'s operating license. The Deutsche Post action is viewed as retaliation for efforts by (UPS) and FedEx (FED) to have Astar Air Cargo (DHL), formerly (DHL) Airways, decertified as a USA carrier because all of its flying is done on behalf of Deutsche Post's (DHL) Worldwide Express unit, which used to own 25% of (DHL). The USA Department of Transportation (DOT) is still in the midst of the investigation to determine whether Astar (DHL) complies with USA citizen requirements.

Begins operation of a new regional structure in China by establishing a HQ in Shanghai (Pudong) with a staff of 50. Its Asia/Pacific HQ remains in Hong Kong. Fedex (FED) serves >220 cities in China and plans to add +100 over the next 5 years. +6 flights Hong Kong - Paris (CDG) (1 routed through Mumbai), & +6 flights Hong Kong to its Asia One hub in Subic Bay.

November 2003: Boeing & Fedex (FED) are performing 90-day test of radio frequency identification (RFID) "smart labels" on some parts on an MD-10; test will also identify potential electromagnetic interference and/or detrimental environmental effects.

December 2003: Announces its 2004 rates will increase an average of +1.9%. However, for the 1st time, FedEx (FED) will be charging less than (UPS) for express service.

In 2004-08, Paris (CDG) - Manchester (UK) - Memphis.

INCDT: A FedEx (FED) MD-10-10 on landing at Memphis had its right main landing gear collapse resulting in extensive fire damage = all 7 flight crew (FC) OK. The National Transport Safety Board (NTSB) report determined probable cause was the first officer's (FO)'s failure to properly apply crosswind landing techniques to align the airplane with the runway centerline and to properly arrest the airplane's descent rate before touchdown. It cited the captain for inadequate monitoring of the (FO)'s performance during the landing and for failing to command or initiate corrective action during the final approach and landing.

727-24C (19527) donated to NYC Aviation HS. 4 MD-10-10F's (46616; 46938; 46939; 47803) converted to freighters, deliveries.

January 2004: FedEx Corp and Clayton, Dubilier & Rice inked an agreement for (FED) to acquire Kinko's, a document solutions and business provider, for $2.4 Billion in cash. Its headquarters (HQ) is still in Dallas.

4th Quarter = +$207 Million (+41%) (+$147 Million). Last 9 months = +$426 Million (-23%) (+$550 Million).

2003 = +$250.23 Million (+$402.15 Million).

February 2004: ATR 42-300 (354, N351AT), (AMR) leased.

March 2004: Frankfurt - Athens (5/week) & Paris Charles de Gaulle (CDG) - Athens (weekly, both A310-200F, load capacity 82,000 lb).

727-22F (18867) returned from Morningstar Express (BWL). 727-22F (370-19141), donated to Broward County College. 727-233F (1541-21673) transferred to (BWL). ATR 42-300 (266, N265AE) bought from (AMR) Eagle.

April 2004: 120,000 employees.

May 2004: A310-203F (454, N436FE), converted to freighter.

June 2004: USA Postal Service (USPS) selected FedEx (FED) to provide transportation and delivery for Global Express Guaranteed, (USPS)'s
date-certain international delivery service. About 7,400 (USPS) locations initially will offer the new co-branded service. The contract replaces a previous agreement with (DHL) Worldwide Express.

(FY) 2003 = +$838 Million (+1%) (+$830 Million): 13.94 Billion FTK (+5.7%). Last Q = +$412 Million (+47%) (+$280M): 3.51 Billion FTK (+6.73%).

USA and China have signed a landmark air services agreement that will more than double the number of USA airlines that may serve China and will permit a nearly 5-fold increase in weekly flights between the 2 countries over the next 6 years.

The agreement allows for +5 airlines from each country, the USA may name +1 additional all-cargo carrier, while China may name either a passenger or cargo carrier, to start service later in 2004. The other 4 new-entrant airlines may be either passenger or cargo carriers, with 1 new carrier entering the market in each of the years 2005, 2006, 2008, & 2010. United Airlines (UAL), Northwest Airlines (NWA), FedEx (FED), & United Parcel Services (UPS) currently serve China.

The agreement allows +195 weekly flights for each side, +111 by all-cargo carriers, & +84 by passenger airlines, resulting in a total of +249 weekly flights at the end of a 6-year phase-in period. A total of +14 of these flights will be available for new passenger services later this year.

Each country's carriers are now allowed to serve any city in the other country. Currently, Chinese carriers are limited to 12 USA cities, and USA passenger carriers may fly to only 5 Chinese cities. The agreement allows unlimited code sharing between USA and Chinese carriers, thus expanding the current agreement which only allows code sharing only to a limited number of cities.

The agreement also provides that when carriers establish cargo hubs in the other country, they will be afforded a high degree of operating flexibility, and expands charter opportunities beyond those provided by the existing agreement.

Trade between the countries has grown dramatically from $4.8 Billion in 1980 to >$170 Billion in 2003. The USA is China's largest export destination, and China is the USA's fastest-growing market.

727-22F (19087) donated to Guiford Technical Community College. 727-173C (19509) donated to Kansas Aviation Museum.

July 2004: Plans to operate regular flights into Central Japan International Airpoort outside Nagoya when it opens in 2/05. This will be the 3rd Japanese airport served following Narita and Kansai.

Opened its new $50 Million Miami Gateway Hub at Miami International Airport, stating that the facility not only will serve the growing South Florida market but also "significantly enhances" its connectivity to Latin America and the Caribbean. The new facility will sort up to 6,000 packages/hour or 40,000/day. It has 145,000 sq ft of warehouse and office space, and occupies 23 acres of land. It includes refrigerated storage space for agricultural products and a 1,000 sq ft cooler system. It also houses a bonded warehouse with onsite customs agents to process Miami imports quickly and efficiently. Its integrated air-ground network will serve the South Florida, Latin America, & Caribbean markets with 4 daily inbound & outbound flights "connecting the world via Miami to Mexico, Venezuela, Colombia, Peru, the Bahamas, Panama, Ecuador, Honduras, El Salvador, Guatemala, Costa Rica, Haiti, Jamaica, the Cayman Islands, and Belize."

MD-10-10F (46619, N385FE), MD-11F (48445, N626FE), & A310-203F (335, N433FE) converted.

August 2004: Buys Parcel Direct for $120 Million which will allow FedEx (FED) to offer a lower shipping cost for packages that are not time-sensitive.

A310-324 (492, N807FD), delivery. ATR 42-300 (282, N282AT) bought from (AMR) leasing.

September 2004: (DOT) named Polar Air Cargo (PAO) as a new entrant in the USA-China market and will distribute 39xz-weekly all-cargo routes among (PAO) and 3 USA airlines: FedEx (FED), Northwest Airlines (NWA), & (UPS). (PAO) will receive initially 9x-weekly flights, 6x- available now, and +3 in 3/05. (FED) & (UPS) each would be awarded +12x-weekly flights, and (NWA) +6x-. Of these flights, half would be available now and the other half in 3/05.

Last Q ending 08/04 = +$330 Million (+$128 Million).

MD-11F (460-48445, N626FE), wet-leased to Martinair (MTH). MD-11 (513-48501, N576FE), bought from (GECAS) (GEF).

October 2004: 3 MD-11's (48499; 48500; 48501), ex-Varig (VAR), bought from (GECAS) (GEF). MD-11 (519-48469) bought from China Airlines (CHI). 7 A310-300's bought from Airbus Asset Management (AFIS), including (452; 457; 458; 467), ex-Khalifa (KHZ), 439; 449; ex-Aeroflot (ARO), & 456 ex-Transaero (TRX).

1 MD-11 (519-48469, N577FE), bought from China Airlines (CHI). 8 MD-11's (510-48476; 536, 48479; 538-48480; 560-48600; 562-48601; 605-48623; 622-48624; 642-485465), bought from Delta Airlines (DAL). 3 MD-11'S (486-48499; 503-48500; 513-48501), ex-Varig (VAR), bought from (GECAS) (GEF). ATR 42-300 (273, N271AT) bought from (AMR) Leasing.

November 2004: In 3/05, will boost its transatlantic capacity 20% westbound with Memphis - Cologne (MD-11F, 5/week).

DC-10-10F (270-46996, N565FE), converted.

December 2004: 2 MD-11's (458-48443, N624FE; 477-48454, N631FE) bought from (CIT) (TCI). A310-203F (355, N434FE), converted. A310-324 (378, N853CH), bought from (GAX).

January 2005: MD-11 (48447, N628FE), ex-Swiss International (CSR).

May 2005: FedEx (FED) is the premier global provider of transport, e-commerce and supply change management services. It is the world's largest express transport company, delivering packages and freight to 215 countries each day. The company's main sorting center and worldwide HQ is in Memphis, Tennessee, USA.

120,000 employees (including 4,500 Flight Crew (FC)).

(IATA) Code: FX - 023. (ICAO) Code: FDX - FEDEX.

Parent organization/shareholders: Publicly held (100%).

Main base: Memphis International (MEM).

Hubs: Oakland International (OAK); Fort Worth Alliance (AFW); Subic Bay (SFS); Indianapolis International (IND); Newark Liberty International (EWR); Paris Charles de Gaulle (CDG); & Anchorage International (ANC).

Domestic Scheduled Destinations: Anchorage; Atlanta; Boston; Buffalo; Chicago; Cleveland; Dallas/Ft Worth; Denver; Detroit; Fort Lauderdale; Grand Forks; Great Falls; Honolulu; Houston; Indianapolis; Kansas City; Los Angeles; Memphis; Miami; Minneapolis/St Paul; New Orleans; New York; Oakland; Rochester New York; San Francisco; Seattle; Spokane; St Louis; Tampa; & Washington.

International Scheduled Destinations: Aguadilla; Almaty; Athens; Bangkok; Basle/Mulhouse; eijing; Bogota; Calgary; Cebu; Copenhagen; Dubai; Frankfurt; Guadalajara; Hong Kong; Jakarta; Kaohsiung; Kuala Lumpur; London; Madrid; Milan; Monterrey; Montreal; Mumbai; Munich; Osaka; Ottawa; Panama City; Paris; Penang; San Juan; Sao Paulo; Seoul; Shanghai; Shenzhen; Singapore; Stockholm; Subic Bay; Sydney; Taipei; Tel Aviv; Toluca; Toronto; Valencia; Vancouver; & Winnipeg.

A310-324F (456, N805FD), converted. 2 ATR 42-300's (243; 282), leased to Air Contractors (HCA).

June 2005: 727-247F (1251-21328, C-FMEY), leased to Morningstar Air Express (BWL). MD-11 (48478) bought from Delta Airlines (DAL). ATR 42-300F (273, EI-FXD) leased to Air Contractors (HCA). ATR 72-212 (404, N812FX), bought from Eurowings (RFG).

July 2005: Will build a $150 Million Asia/Pacific hub at Guangzhou Baiyun International Airport to replace its existing hub in Subic Bay, Philippines. It is expected to open in December 2008 at which time the Subic Bay hub will close. The Guangzhou hub will be the largest in Asia/Pacific, covering 82,000 sq ft and provide employment for 1,200 at startup. It will be capable of sorting up to 24,000 packages/hour, double the capacity of the current complex at Subic Bay. FedEx (FED) will maintain its presence in the Philippines, wher Manila and Cebu will remain part of its AsiaOne network. It is in the process of developing a regional center and expanding its operations gateway in Manila.

James Parker Senior VP Air Operations replaced Donald Barber, who retired.

August 2005: 2 ATR 42-300F's (141, N141AE; 310, N310DK) & 2 ATR 72-202F's (157, N414FX; 229, N815FX), deliveries and leased to Air Contractors (HCA).

September 2005: FedEx Express (FED) announced a new MD-11F flight offering what it says is the 1st overnight express service between India and China 5x-weekly. The flight is part of a new eastbound around-the-world route connecting Europe, India, China and Japan with the Memphis hub.

(FED) ordered 6 A300-600Fs plus an undisclosed number of options. Deliveries will begin in 2007. Value of the order and engine selection were not released. (FED) operates 47 A300-600Fs plus 54 A310Fs.

A300B4-622R (581, N728FD), to Dresden for freighter conversion. MD-11F (48565, N525FE), to Mojave for (R&D) program for anti-terrorist countermeasures (not yet converted).

October 2005: FedEx Express (FED) said it will expand operations in India, adding 5 additional flights a week to New Delhi, taking the total number to 16. It will also expand its retail presence to 54 cities from 11 cities. Dow Jones Newswires reported the company plans to increase its workforce in India by +184 people to 425.

ATR 72-212F (347, N816FX), delivery.

December 2005: FedEx (FED) Corporation reported a net income of +$471 million for the fiscal 2nd quarter ended Nov 30, a +33% rise from the $354 million earned in the year-ago quarter that Chairman, President and (CEO) Frederick Smith attributed to "customer demand, a disciplined pricing approach [and] solid economic growth year-over-year in the USA and Asian economies. "Operating income totaled +$790 million, a +32% jump over 2004. Revenues rose +10% to $8.09 billion against an 8% increase in expenses to $7.3 billion. Last year's 2nd quarter included a one-time charge of $48 million related to the company's claim for compensation under the Air Transportation Safety and System Stabilization Act.

The FedEx Express (FED) segment posted the largest improvement over the year-ago quarter as operating income jumped +43% to +$476 million from +$333 million. Revenue climbed +11% to $5.37 billion against a +9% lift in expenses to $4.89 billion. Fuel costs rose +48% to $760 million, but most other expenses were close to 2004 figures. FedEx International Priority revenue grew +14%.

Traffic (FTK) as measured in daily freight lbs was up +9% to 11.8 million, driven largely by a +22% gain in international volume. The number of daily packages carried by FedEx Express (FED) rose just +2% to 3.3 million. Yield per lb rose +11% to $0.91 as domestic yield climbed +13% to $0.94 and international yield increased +5% to $0.81. (FED) said some revenue and yield increases were due to higher fuel surcharges.

FedEx Corporation reported +$810 million in net income for the 1st 6 months, a +18% increase over the year-ago semester. FedEx Express (FED) grew with the company, posting a +18% rise in operating income to +$761 million on a +11% increase in revenue to $10.49 billion and +10% growth in expenses to $9.73 billion.

ACCDT: Cessna 208B Caravan 1 Super Cargomaster (248, N753FE), operated by Empire Airlines was destroyed on December 24th after it failed to gain height on take-off from Portland International Airport. The airplane collided with a glide slope antenna and then a fence before coming to a rest near hole 7 of the Broadmoor Golf Course = 1 Pilot (FC) sole occupant.

A300B4-622R (572, N725FD), bought from Airbus (AFIS), to be converted to freighter at Dresden.

January 2006: FedEx Express (FED) signed an agreement to acquire Tianjin Datian W Group's 50% stake in the FedEx-(DTW) International Priority express joint venture plus (DTW)'s Chinese express network comprising 89 locations for $400 million. The joint venture (JV) launched in 1999, now will be a wholly owned FedEx (FED) subsidiary. The deal also includes (DTW) assets used to perform IP services. (DTW) will continue to operate international freight forwarding, general cargo transport and merchandise distribution businesses. FedEx (FED) said the Chinese cargo market, already the world's 2nd-largest, is expected to average more than +10% growth annually to 2023.

Venezuela's Instituto Nacional de Aeronautica Civil said in a statement on its website that it is reducing dramatically the number of flights USA carriers American Airlines (AAL), Continental Airlines (CAL), Delta Air Lines (DAL), and FedEx (FED) will be allowed to operate into the country beginning March 30.

The statement indicated that Venezuelan authorities felt the USA was not living up to the terms of the bilateral agreement between the countries. Representatives from the Venezuelan and USA governments, along with airline officials, met but apparently were unable to resolve their differences. The four carriers had not canceled any flights, according to press reports.

Continental (CAL) (daily service to Caracas from Houston and weekly from New York) and Delta (DAL) (daily Atlanta - Caracas service) will be prohibited from flying to Venezuela. American (AAL), which operates daily flights from Dallas/Fort Worth, Miami, New York (JFK) and San Juan, will lose -70% of its frequencies, according to the Financial Times. The effect on FedEx (FED) was unclear.

Venezuela, along with several neighboring countries, lost its USA (FAA) Category 1 rating in the mid-1990s due to problems with airport security. However, it is the only nation that has remained in Category 2, meaning its airlines can continue to fly to the USA but can't add frequencies or new routes.

The USA carriers said the announcement came as a surprise. "We are very disappointed by this unilateral action by the Venezuelan government and we are working closely with the USA Departments of State and Transportation, as well as the airlines who received similar notice, to resolve the issue as quickly as possible," a Delta (DAL) spokesperson told the Associated Press.

727-22C (19199, N103FE), donated to Lubbock Fire Department. MD-10-30F (46801, N302FE), converted to freighter. A300B4-622RF (579, N727FD; 581, N728FD), converted to freighter and redelivered. ATR72-202 (294, N818FX), bought from Eurowings (RFG).

February 2006: A300B4-622R (633, N633AN), bought from AWAS (AWW). F27-500 (10467, N719FE), sold to NPTC. ATR72-202F (229), sold to Air Contractors (HCA).

March 2006: Venezuela apparently agreed to rescind a proposed ban on most USA airline operations into the country that was set to take effect March 30, although it was unclear at press time whether the decision was in fact final. Currently, American Airlines (AAL), Continental Airlines (CAL), Delta Air Lines (DAL) and FedEx (FED) operate services between the countries.

Wire services initially quoted USA Ambassador to Venezuela, William Brownfield as saying that the ban would not take effect and in return (FAA) would send a technical team to the South American nation to help it achieve a Category 1 safety rating. "I think our 2 governments have resolved, at least for the moment, the civil aviation problem," Brownfield said on Venezuelan television, the Associated Press (AP) reported. However, late Friday officials of Venezuela's National Aviation Institute said they had not finalized their decision, (AP) stated.

The country has had a Category 2 rating since 1995. The rating means that Venezuelan carriers must wet-lease USA-registered airplanes or airplanes from airlines operating out of Category 1 countries to serve USA destinations.

Later, Venezuela, following negotiations with USA aviation officials, announced it had agreed to postpone placing restrictions on incoming USA flights until April 25, when (FAA) officials release the results of a safety audit, that Venezuela hopes will return it to Category 1 status. Instituto Nacional de Aeronautica Civil said in a release on its website that (FAA) officials visited two airlines operating domestic and international services as well and inspected operational and legal security measures amid a "cordial atmosphere."

Growth in international express package shipments and effective yield management on the domestic air transportation front played key roles in FedEx (FED) Corporation's strong fiscal 3rd quarter ended February 28, resulting in net income of +$428 million, up +35% from the year-ago quarter's +$317 million profit. "Earnings for our 3rd quarter were better than forecasted due to a stronger-than-expected holiday peak season for FedEx (FED) Ground, improved productivity in our transportation segments, lower-than-expected fuel costs, deferral of advertising and promotion costs to the 4th quarter and a lower effective tax rate. Our earnings guidance for the fourth quarter, which assumes continued economic growth, reflects a more normal expense trend," Executive VP & (CFO) Alan Graf Jr said.

Company revenue increased +9% year-over-year to $8 billion against a +7% rise in expenses to $7.29 billion. Fuel costs climbed +36% to $774 million. Operating income grew +29% to $713 million. For the 9-month period, profit was up +24% to +$1.24 billion.

The FedEx Express (FED) segment reported a +9% lift in third-quarter revenue to $5.34 billion, a sum accounting for 66.7% of the parent company's total turnover. FedEx Express (FED) expenses came to approximately $4.89 billion, an increase of +7%, and operating profit grew +31% to +$446 million. Operating margin rose +1.5 points to 8.4% owing to "solid growth" in International Priority and USA Overnight revenue, yield management and productivity, according to the company.

Daily volume increased +5% to 11.8 million lbs, driven by +17% growth in international shipping to 2.8 million lbs per day. 9-month revenue climbed +10% to $15.83 billion as expenses rose +9% to $14.63 billion and operating income surged +23% to $1.21 billion.

A310-324F (534, N814FD), ex-Air Paradise International (API), bought from Rolls Royce (RRC) Aircaft Management, to be converted to freighter at (EADS) (EFW) Dresden.

April 2006: FedEx Express (FED) was awarded 3 additional frequencies to China, bringing the number of weekly flights to 26. No destinations were announced.

Venezuela's threat to restrict flights by USA airlines into the country, appears to have been successful, as the USA (FAA) raised the nation's safety rating to Category 1, meaning it complies with (ICAO) standards. USA aviation officials conducted a safety audit and inspections last month, after the South American country agreed to postpone until April 25 its ban on all operations conducted by Continental Airlines (CAL) and Delta Air Lines (DAL) and some American Airlines (AAL) flights. Venezuela had been a Category 2 country since 1995, the last time (FAA) conducted a safety assessment. The action meant that Venezuelan airlines could not add flights to the USA. Venezuela said when it proposed the ban in February that the USA was ignoring its progress on safety and regulatory issues and was not living up to the terms of the bilateral agreement between the countries. (FAA) said that 2 (ICAO) audits conducted since 1995 have uncovered "increasing improvements."

727-25C (19855, N136FE), donated to Mohawk Valley Community College.

May 2006: FedEx (FED) Express unveiled an expansion plan for its Indianapolis (IND) hub, that includes construction of up to 14 widebody gates. The project will boost its processing capacity at the airport by 30% to 99,000 packages per hour and is expected to be completed by late 2008. As part of its agreement with (IND), (FED) extended its lease by 12 years to 2028. Indianapolis Airport Authority will fund, construct and lease back to FedEx (FED) 5 wide body gates by December, with options for 9 more. Construction on the initial 5 will begin this month. (FED) currently controls 61 gates at (IND), including 38 wide body gates. Additionally, it is building a major air hub in Guangzhou, China, also to be completed by late 2008.

The A380F suffered 2 blows last week (the program has slipped by 6 months and Emirates (EAD) has switched its orders to the passenger version because of a delay in finalisation of the airplane’s specification).

The 1st A380-800F was due to be delivered to launch operator FedEx Express (FED) in August 2008, but Airbus (EDS) confirms this has slipped to early 2009. This significantly reduces the gap between the A380F and rival 747-8F, which is due to enter service in late 2009.

“[Last May] we announced that the whole A380 program has slipped by 6 months, and the new delivery date for the 1st A380F is early 2009,” said Airbus. “There has been one single delay to the program.”

However, as late as last September, (FED), which has 10 Engine Alliance (GP7200)-powered A380Fs on order, was expecting to receive its 1st 3 freighters in 2008. Speaking at the Cargo Facts 2005 conference last September, David Sutton Managing Director of Aircraft Development, Acquisitions & Sales in (FED)’s A380 program office, said its 1st 3 airplanes would be delivered between August and September 2008.

Sutton now says that “due to the overall program delay at Airbus, we now expect to receive our 1st A380F in early 2009”. He added that, despite the slip, “the specification development for the freighter is progressing very well”.

Meanwhile, Emirates Airlines (EAD), which was the only non-package carrier or leasing company customer to hold firm orders for the A380F (the other customers are FedEx (FED), United Parcel Service (UPS) and International Lease Finance (ILF), has switched its contract for 2 freighters to the passenger version, taking its orders to 43 airplanes, plus 2 on lease.

“Final definition and specification freeze were proving elusive,” said Emirates (EAD) President (airline) Tim Clark. “We needed to protect our delivery positions and switched the order to the passenger version. Once the freighter is ready, we will have another look.”

A310-304F (552, N817FD), bought from (RGF) Holding.

June 2006: Driven by growing revenues on transpacific services, FedEx (FED) posted fiscal 4th-quarter net income of +$568 million, a +26.8% increase over earnings of +$448 million in the year-ago quarter. The FedEx Express (FED) airline segment produced operating income of +$560 million for the period ended May 31, a +29.9% improvement over +$431 million last year. Perhaps more importantly, (FED) achieved an operating margin of 10%, a figure that long has been a target of (FED) executives.

"We're certainly looking for improvement in FedExpress margins," (CFO) Alan Graf told analysts in a conference call. "We're on a plane to get to 10% for an entire fiscal year. That's our goal."

For the full year, (FED) reported net income of +$1.8 billion, up +25% over net income of +$1.45 billion in Fiscal Year (FY) 2005. Revenues were $32.3 billion, up +10% from $29.4 billion the previous year. Operating expenses rose +9% year-over-year to $29.3 billion compared to $26.9 billion last year.

(FED) posted full-year operating income of +$1.76 billion, up +25% over operating income of +$1.41 billion for (FY) 2005. The unit's annual revenues reached $21.45 billion, a +10% increase, as operating expenses grew +9% to $19.7 billion. Fuel expenses surged +38% in the fiscal year to $2.8 billion. 4th-quarter revenues were $5.6 billion, up +10% from $5.1 billion in the year-ago quarter, as quarterly operating expenses climbed +8% to $5.1 billion.

"(FED) posted record financial results in the 4th quarter and full year as it ended fiscal 2006 in an environment of solid economic growth in the USA and in international markets," Chairman Frederick Smith said. "We remain optimistic about the global economic environment for fiscal 2007 and our ability to manage our business."

Boeing and FedEx (FED) jointly have initiated a 120-day in-service evaluation of active radio frequency identification tags on some major airplane parts for a FedEx (FED) MD-10F. Active tags provide considerably greater read range than passive tags, 300 ft compared to 10 ft, giving the ability to inventory an airplane without opening access doors, according to Boeing. Active tags also operate more quickly and provide more storage memory. The tags were created by Identec Solutions, are battery powered, and contain a microchip and transmitter that operate at 915 MHz. 40 installed tags will transmit a signal every 3 seconds for the 1st 90 days. Thereafter, 10 additional tags with 8 kb of read/write memory will be read and encoded with data for 30 days. During this part of the test, (FED) mechanics (MT) will use a portable data terminal to read and write inspection data to the tags during scheduled visits of the airplane to the Memphis base.

727-22C (19202, N107FE), donated to Columbus Ohio State Community College. A310-324 (589, N68096), bought from Boeing (TBC).

July 2006: United Parcel Services (UPS)'s 2,700 pilots (FC) are being briefed by Independent Pilots Association leaders on a tentative labor agreement reached late last month, that will be put to a vote in September. The 5-year deal reportedly provides increased pay and improved work rules, including a +20% raise in a captain's average salary to $300,000 annually. Negotiations lasted 3 years.

The proposed deal puts pressure on FedEx (FED), which has been negotiating with its pilots (FC) on a new labor contract since 2004. "There is no way we are going to accept less than what the (UPS) pilots (FC) have accomplished," David Webb Chairman of the FedEx (FED) unit of the Air Line Pilots Association, told the Memphis Commercial Appeal. "It is an absolute that (UPS) is our number one competitor. If (UPS) feels it can remain competitive with the pay and benefits it has offered its pilots, FedEx (FED) should know we are not going to accept less."

(FED) revealed that it received a grand jury subpoena in June relating to a wide-ranging multigovernment probe into possible anticompetitive practices by air cargo carriers.

"We have no reason to believe that we are a target of the investigation, and we are cooperating with the [USA Department of Justice (DOJ)]," (FED) said in a filing with the USA Securities and Exchange Commission (SEC).

European Union (EU) and USA authorities launched a major investigation in February into whether airlines carrying cargo, colluded illegally to fix surcharges to offset fuel, security and insurance costs. Carriers' cargo offices were raided in both the USA and Europe, followed by similar raids at some Asian airlines by authorities there. Carriers throughout the world have been imposing fuel surcharges on cargo shipments since fuel prices started escalating in 2004, with multiple airlines often raising or lowering charges to the same rates within days of each other.

(FED), which previously said it was not involved in the probe, was subpoenaed by (DOJ) "for the production of documents in connection with an ongoing investigation into possible violations of federal criminal antitrust laws in the air cargo transportation industry," according to the company's (SEC) filing.

Rival (UPS) previously conceded it has been contacted by (DOJ) as part of the investigation, but claimed to not be a target itself. British Airways (BAB), Air France (AFA)-(KLM), Lufthansa (DLH), (SAS), Cargolux (CLX), American Airlines (AAL), United Airlines (UAL), Korean Airlines (KAL), Cathay Pacific Airways (CAT), Japan Airlines (JAL), (LAN), and Polar Air Cargo (PAO) have admitted to being contacted as part of the probe.

INCDT: MD-10-10F (169-46625, N391FE), landing gear collapsed on landing at Memphis, and caused fire. Airplane Damaged Beyond Economical Repair (DBER) - Written-Off (W/O).

MD-10-10F (47827, N568FE), & MD-11F (48600, N526FE), converted to freighter and redelivered. A300B4-605R (709, N731FD; 713, N732FD) bought from Polaris. A310-324 (500, N501RR), bought from Rolls Royce (RRC).

August 2006: FedEx (FED) extended its contract with the US Postal Service to provide domestic airport-to-airport carriage of mail aboard its airplanes. The new 7-year deal replaces the last 2 years of a 7-year agreement reached in 2001 and runs through 2013. FedEx (FED) predicted the contract, which calls for it to fly >4 million lbs of mail daily, will generate $8 billion in revenue >7-year period.

FedEx Express (FED) and pilots (FC) represented by the Air Line Pilots Association announced a tentative 4-year labor agreement reached with the help of the National Mediation Board, which intervened in October 2005. The parties have been negotiating since 2004 and said the deal "is subject to review and finalization of contract language." Details of the agreement were not released.

(FMC) Technologies said its Airport Equipment and Services operation in Orlando was selected by FedEx Express (FED) to develop and manufacture a new A380F main/upper deck cargo loader.

727-22F (18867, N180FE), donated to Purdue University. A300B4-605R (713, N732FD), bought from Polaris. A310-324F (452, N810FD), converted and redelivered.

September 2006: FedEx (FED) pilots (FC) union leadership approved the four-year tentative contract reached with management two weeks ago and unanimously recommended ratification when more than 4,000 eligible pilots (FC) cast ballots in voting scheduled for September 18 to October 17. (FED) and its pilots (FC), represented by the Air Line Pilots Association reached the deal after >2 years of often-contentious negotiations. (MEC) Chairman David Webb said the new agreement provides "substantial benefits," including "industry-leading pay, improved retirement benefits for pilots (FC) through changes in both the defined benefit and defined contribution plans, and strengthened and enhanced work rules."

(FED), the airline unit of the global delivery giant, reported operating income of +$467 million for its fiscal 1st quarter ended August 31, widened from operating income of +$285 million in the year-ago quarter, as revenues jumped +10% to $5.64 billion.

(FED) operating margin in the quarter was 8.3%, up from 5.6% in the year-ago period. "Operating income and margin during the quarter improved due to revenue growth, revenue management and effective cost cuts."

Parent, FedEx Corporation reported overall net income of +$475 million for the period, up +40.1% over +$339 million earned a year ago, on an +11% gain in revenue to $8.54 billion. Operating income was +$784 million, an increase of +34.2% over +$584 million in the year-ago quarter, as expenses grew +9% to $7.76 billion and operating margin rose +1.6 points to 9.2%.

Chairman, President & CEO Frederick Smith said global trends are in line with (FED)'s expedited delivery business model. "We remain confident in our ability to achieve solid profitable growth by taking advantage of strong international trade trends, increased demand for fast-cycle logistics and the expansion of online purchasing," he said.

FedEx (FED) International Priority revenue, a key component of Express operations, grew +17% in the quarter, including an +11% gain in per-package revenue "primarily due to fuel surcharges, an increase in package weights, a higher rate per pound and favorable exchange rates," (FED) said.

(FED) noted that a new labor contract with pilots (FC), tentatively agreed to during the fiscal 1st quarter, means "up-front pilot (FC) compensation costs" will have a net impact on fiscal 2nd-quarter and full-year earnings of 20 cents per diluted share, forcing it to lower its Fiscal Year (FY) 2007 earnings guidance to $6.30 - $6.45 per diluted share from $6.45 - $6.80 previously.

FedEx Express (FED) pilots (FC) represented by the Air Line Pilots Assn approved the 4-year labor agreement reached in September by a 94.6% to 5.4% vote, with 93.7% of eligible pilots (FC) casting a ballot, (FED) and union announced this week

(FED) said it will invest $2.6 billion to acquire and modify up to 90 757-200s to replace its 727-200F freighters.

The FedEx Express (FED) airline unit is expected to bring the new aircraft into service from 2008 to 2016.

"Compared to the 727 airplane, the 757 has a +20% greater payload capacity and has an approximately -25% lower operating cost per pound," (FED) said. "Replacing the older 727 airplanes with the more fuel efficient and quieter 757 airplanes will have the effect of significantly reducing operating costs over time and provide better airplane utilization efficiencies."

The company added that the program is expected to have "very positive financial benefits upon completion" and insisted its startup costs "will not materially affect earnings."

2 MD-11F'S (48479, N523FE; 48480, N524FE), converted and redelivered.

November 2006: FedEx Express (FED), the delivery giant's airline unit, yesterday signed an agreement to acquire its Indian service provider, Prakash Air Freight (PAFEX), for $30 million in cash.

(PAFEX) has 384 offices in India and serves nearly 4,400 destinations. It has been FedEx (FED)'s service provider there since 2002, providing domestic logistics and courier delivery support for the USA express company's airline operations in India. The deal is subject to regulatory approval by India's government.

(FED) said that having "a wholly owned operation in 1 of the world's fastest growing markets" strengthens its global network. "This acquisition will solidify the (FED) leadership position within India," said Robert Elliott President of FedEx Express (FED) for Europe, the Middle East, Africa and the Indian subcontinent. "Bringing (PAFEX) operations within the company is the logical next step in the ongoing development of our Indian business."

(FED) cancelled its $2.3 billion order for 10 A380Fs and placed an order for 15 777Fs with 15 options, becoming the 1st airline to cancel an A380 order and dealing a serious blow to beleaguered Airbus (EDS).

The cargo operator said it could not wait for Airbus (EDS) to work through A380 production delays. "Global demand for air cargo and express services continues to grow rapidly and FedEx (FED) has made significant investments in our network to meet customers' needs and fulfill our business objectives. Therefore, it was necessary and prudent for us to acquire the Boeing 777F freighter," (FED) Chairman, President & CEO Frederick Smith said. "The availability and delivery timing of this airplane, coupled with its attractive payload range and economics, make this choice the best decision for FedEx (FED)."

(FED) President & (CEO) David Bronczek said the 777F will be used for direct long-haul flights between major markets in the USA, Europe and Asia. (FED) will take delivery of 4 777Fs in 2009, 8 in 2010 and 3 in 2011.

It becomes the 5th customer to order the airplane, which was launched in 2005. Its order for 15 is the largest for the 777F, scheduled to enter service in 2008 with launch customer Air France (AFA), which has ordered 5 +3 options. Emirates Airlines (EAD) has ordered 8 and China Southern Airlines (GUN) has firm orders for 6 of the type. Boeing (TBC) said it now has sold 38 777Fs.

Airbus (EDS), embroiled in a political firestorm over A380 delays, the A350 redesign, and a major restructuring initiative, that is expected to include job cuts and facility closures or sell-offs, said it "regrets" the FedEx (FED) cancellation, but still believes in the ultimate success of the A380 program. (FED) rival (UPS) also has 10 A380Fs on firm order. It is unclear how the move by FedEx (FED) will affect (UPS).

A300B4-622RF (575, N726FD), redelivered after conversion.

December 2006: "Earnings were better than forecast, primarily due to lower-than-expected fuel prices, [strong growth in ground delivery services] and insurance proceeds related to Hurricane Katrina," Executive VP & CFO Alan Graf said.

The FedEx Express (FED) airline segment registered 2nd-quarter operating income of +$502 million, up +5% from +$476 million last year, on a +6% rise in revenues to $5.69 billion. The segment's operating margin was 8.8%, down -0.1 point from the year-ago period, a falloff the company attributed to costs associated with a new pilot (FC) labor contract, including signing bonuses and other up front compensation that totaled about $143 million, as well as pay increases and enhanced benefits.

(FED) pointed out that the Express unit is growing its international network, evidenced by recent agreements to buy UK domestic express operator (ANC) Holdings and its Indian service provider Prakash Air Freight.

Total operating expenses were $8.09 billion, up +11%, leading to operating income of +$839 million, a +6% increase from +$790 million last year. The Express segment generated more revenue and operating income than the company's other 3 units combined. Its per-lb yield on international shipments grew +6% to 86 cents with overall per-lb yield rising +8% to 98 cents.

FedEx (FED) Chairman, President & CEO Frederick Smith said holiday season volumes have been "solid" and he expects "continued global economic growth in 2007."

(FED) acquired (ANC) Holdings, a (UK) express delivery operator, in a £120 million/$234 million move the global air cargo power said will enable it "to directly serve the entire (UK) domestic market." (ANC) has annual revenues of >£145 million. "The addition of (ANC) significantly expands our service portfolio in the important (UK) market, and underscores our continuing commitment to grow the (FED) international business," (FED) President International, Michael Drucker said. (ANC) management will remain in place and report to FedEx (FED) executives. The purchase comes <2 months after (FED) agreed to buy its Indian service provider, Prakash Air Freight (PAFEX).

2 MD-10-10F (208-46629, N395FE; 273-46994, N567FE), redelivered after freighter conversion.

January 2006: Singapore Technologies Aerospace announced a massive freighter conversion deal with FedEx Express (FED) covering 87 757s, with ST Aero President, Tay Kok Khiang putting the value of the contract at $450 to $470 million over the seven-year life of the program.

Work will be done at ST Mobile Aerospace Engineering in Mobile, Alabama, using a Supplementary Type Certificate (STC) developed and owned by ST Aero based on data licensed from Boeing (TBC), including design and certification data from a previous 757 passenger-to-freighter conversion, according to Boeing (TBC) VP Technical Services, Tim Copes.

The first airplane will enter the conversion process in May with redelivery expected at the end of December. Future conversions are expected to take fewer than 120 days, Tay said. Mobile Aerospace will run three nose-to-tail conversion lines, "if not more," he added.

FedEx (FED) VP Engineering, Mark Blair said the carrier has commitments, firm contracts and/or letters of intent (LOI)s for just under 90 757s, with the first to be delivered this month. He declined to identify sellers of the airplanes. Last September, FedEx (FED) announced the $2.6 billion program to transition its narrowbody freighter fleet from 727Fs to 757Fs.

Northrop Grumman (GRU) began testing and evaluation of its laser-based Guardian counter-Manpad missile defense system aboard an MD-10 at Los Angeles International. FedEx (FED) is the likely operator of the airplane. Testing will run through March 2008 and will include eight other MD-10s in revenue service. The Guardian system is designed to detect shoulder-fired missiles and direct a nonvisible laser to the seeker head that will disrupt its guidance and cause it to miss the airplane.

February 2007: 757-2B7 (27122, N610AU), bought from Wilmington Trust. MD-11F (48624, N815DE), converted. A300F4-605R (873, N687FE), delivery.

March 2007: FedEx (FED) reported net income of +$420 million for its fiscal third quarter ended February 28, down -2% from +$428 million earned in the year-ago quarter, on a +7% rise in revenue to $8.59 billion. Chairman, President & CEO, Frederick Smith attributed the profit fall to the USA economy growing "at a lower rate than we expected." Executive VP & CFO, Alan Graf warned, "FedEx (FED)earnings growth in our upcoming fiscal 2008 . . . may be below our long-term earnings target [of 10 to 15% per share annual growth] due to slower economic growth and planned investments in our businesses." Both executives projected that long-term earnings growth will return to high levels "once economic conditions improve."

The FedEx Express (FED) airline unit reported a +3% revenue increase to $5.52 billion for the third quarter with operating income decreasing -12% to +$391 million. Operating margin was down -1.3 points to 7.1%, "primarily due to lower revenue growth, the timing impact of fuel surcharges and severe winter weather," the company said. Companywide expenses climbed +9% to $7.95 billion, leading to an operating income decline of -10% to +$641 million. For the nine months ended February 28, net income rose +14% to $1.41 billion from $1.24 billion for the same period last year, on a +10% lift in revenue to $26.06 billion.

FedEx (FED) said it plans to launch next-business-day domestic express service in China from May 28, with Okay Airways (OKA) operating an air cargo network using 737F freighters in support.
FedEx (FED) plans to provide 19 Chinese cities with next-business-day, time-definite delivery and another 200 cities with next-day, but not time-definite service. It will operate a hub-and-spoke system centered at Hangzhou Xiaoshan International in Zhejiang Province. The Hangzhou hub initially will be able to sort up to 9,000 packages per hour, the company said. China's first privately held airline, Okay (OKA) launched in 2005 as a low-cost carrier. It operates 737-900s on its passenger flights and will use three 737Fs to support FedEx (FED). Each airplane will make two "circular routes nightly," FedEx (FED) said.

2 727-22Fs (19081), donated to SW Louisiana Technical Community College, & (19084), donated to Eastern New Mexico - Roswell College. 2 757-2B7s (27124, N928UW; 27148, N931UW), bought from Wilmington Trust. A300F4-605R (874, N688FE), delivery.

April 2007: FedEx (FED) hired 8 pilots (FC) in March. Predicts it will hire 250 pilots in 2007.

FedEx Express (FED), the delivery giant's airline unit, signed an agreement to acquire its Hungarian service provider, "Flying-Cargo (F-C) Hungary," a move that fits with its strategy to expand in Eastern Europe and gain greater control of service providers in emerging markets. Financial terms of the deal were not disclosed. (F-C) has been aligned with FedEx (FED) in Hungary since 2003, helping to move and deliver international express shipments. (F-C)'s "day-to-day operations are expected to remain unchanged for the foreseeable future," FedEx (FED) said, adding that the company will become a wholly owned FedEx Express (FED) business.
"Since the mid-1990s, Hungary has proven to be one of the standout economies in Eastern Europe, with import and export growth rates of up to +7% projected until 2009," said Robert Elliott, FedEx Express President for Europe, the Middle East, Africa & India. "Due to increased demand from global customers . . . the decision to acquire Flying-Cargo (F-C) was seen as the next logical step in the ongoing development of our business in Hungary." The company last year acquired its Indian service provider, Prakash Air Freight, for $30 million in cash.

USA Transportation Secretary, Mary Peters said last week during a Chinese tour that the USA is seeking an "open skies" agreement with the world's most populous nation similar to the recently agreed USA - (EU) accord and hopes to have "the basic framework" for a deal in place next month. "I do believe that we can reach a meaningful agreement by May [when Chinese Vice Premier, Wu Yi and USA Treasury Secretary, Henry Paulson are scheduled to meet in Washington] . . . and then consummate that agreement, we would hope, by the end of the calendar year," Peters said. She expressed the sentiments both in speeches and at press briefings during a tour that took her to Shanghai for the signing of an agreement establishing (UPS)'s new China air hub and to Beijing for talks with transport officials. The two nations reached an accord in 2004, that expanded passenger services and cleared the way for USA cargo carriers such as (UPS) and FedEx (FED) to establish air hubs in China without being subject to restrictions. Both plan to have hubs operational next year, with FedEx (FED) based in Guangzhou, and (UPS) in Shanghai. Peters said she wants to see regulatory barriers for passenger services lowered as well. "Demand for nonstop USA - China service is there, but unfortunately the supply is not," she said. Pointing to gains resulting from the 2004 agreement, she noted that "the number of passengers traveling between China and the United States [in 2006] was more than double the 2003 level. Airfreight volumes also have taken off dramatically, rising from about 270,000 tons in 2003 to almost 400,000 tons in 2006." She said a broader agreement would have benefits for both nations. Her comments last week came in the wake of growing tension between the USA and China in other economic sectors, signaling that air transport is an area where USA officials believe headway can be made despite other points of dispute.

2 727-22Fs (18872) donated to Owens Community College and (19085), donated to City/County of Denver. A300B4-622R (633, N748FD), and A310-308F (593, N816FE), redelivered after conversion. A300F4-605R (876, N690FE), delivery.

May 2007: FedEx (FED) has not ruled out completely its interest in an A380F freighter even though it canceled its $2.3 billion order for 10 last November. "Of course, we will look at it again," Chairman, President & CEO, Fred Smith said. "It's a great airplane - - a marvelous piece of engineering." But he said the delays besetting the program have rendered a freighter version an option for the more distant future. "Airbus (EDS) had limited resources and it would have difficulty meeting customer needs and developing a freighter," he said. FedEx (FED) instead placed an order for 15 777Fs with options for an additional 15. Smith said the two airplanesd are completely different, with the 777F able to haul 175,000 lbs of cargo compared to the 300,000-lbs capacity of the A380. Already some Airbus (EDS) customers have expressed an interest in a stretch version of the A380, which would have structural features similar to a freighter version, he said. If that happens, "We would take another look."

3 727-22Fs (18865), donated to Hallmark Institute of Aeronautics, (19082), donated to Pittsburgh Institute of Aeronautics, and (19147), donated to Big Bend Community College.

June 2007: FedEx (FED) Corp concluded its fiscal year ended May 31 with a net profit of +$2.02 billion, up +12% from the +$1.81 billion earned in the prior 12 months, a result it credited to "strong" volume growth at its FedEx (FED) Ground segment and "continued" revenue growth for FedEx (FED) Express International Priority products. Chairman, President & CEO, Frederick Smith called the profit "solid" and said the company was "restrained by a slowing USA economy. The weakened industrial sector is currently limiting demand for transportation services, but we expect the USA economy to begin to show modest year-over-year improvement in the late summer to early fall timeframe."

Full-year companywide revenue rose +9% to $35.2 billion, while operating income climbed at the same rate to $3.28 billion. Fiscal fourth-quarter profit of +$610 million, represented a +7% increase over the year-ago period. FedEx (FED) Express reported a fourth-quarter operating profit of +$595 million, up +6% from the +$560 million earned in the three months ended May 31, 2006. Revenue rose +4% to $5.83 billion. (FEIP) revenue grew +7% year-over-year, and revenue per package lifted +4% as favorable exchange rates, higher weights and higher rates per lb were offset by falling fuel surcharges. Margins were helped by the benefit from the company's settlement with Airbus (EDS) over the delayed and ultimately cancelled A380F freighter order, although improvement was mitigated by a "softening global economy," high fuel prices and the launch of next-business-day domestic express service in China, at the end of May.

FedEx (FED) signed a new 30-year lease agreement with the Memphis-Shelby County Airport Authority under which it will pay more than >$240 million over the life of the contract, to control a 30.5-million-sq-ft area at Memphis International. The agreement goes into effect January 1 and replaces one that had been in place since 1979. FedEx (FED) will pay $7.9 million next year, with annual payments rising +13% every five years. The agreement includes options to extend it to 2058.

2 A300F4-605R (875, N689FE; 877, N691FE), deliveries.

July 2007: The Carlyle Group, a private equity firm, reached a definitive agreement to acquire (ARINC) from its current shareholders, which include more than a dozen major airlines and Boeing (TBC). (ARINC), which generates more than >$900 million in annual revenue, specializes in transportation communications technology, and its Air Traffic Control (ATC) support systems are used by carriers and airports throughout the world. Primary shareholders in the 77-year-old company based in Annapolis, include American Airlines (AAL), United Airlines (UAL), Delta Air Lines (DAL), Continental Airlines (CAL), Northwest Airlines (NWA), US Airways (AMW)/(USA), Air Canada (ACN), Air France (AFA)/(KLM), Lufthansa (DLH), British Airways (BAB), Mexicana (CMA), Swiss International Air Lines (CSR), TACA (TAC), FedEx (FED), Hawaiian Airlines (HWI), and Philippine Airlines (PAL). (AAL) said it would receive $194 million from the sale of its stake and (UAL) expects $125 million. Other carriers did not immediately disclose expected proceeds and (ARINC) did not release financial details. The company said the transaction is expected to close in the third quarter subject to regulatory approval. "This is an important step in the evolution of (ARINC)," Chairman & CEO, John Belcher said. "We have worked very hard to find a partner, who shares our vision and believe that Carlyle's international presence, financial resources, and expertise in the aerospace, defense and communications sectors will be instrumental in the continued expansion of our business." Carlyle Managing Director & Head Global Aerospace & Defense, Peter Clare said, "We believe that (ARINC) is well positioned to capitalize on several favorable macro trends in both its commercial and government market segments." (ARINC) earned net income of +$10.2 million in 2006, a +14.3% decrease from +$11.9 million in 2005. Its annual revenue has risen steadily this decade, increasing +72.7% from $532 million in 2000 to $919 million last year.

Airbus (EDS) delivered an A300F freighter to FedEx (FED), the final A300/A310 that the manufacturer will produce. Over the life of the program, which was launched in 1969 with the first airplane delivered to Air France (AFA) in 1974, Airbus (EDS) sold a total of 821 A300s/A310s. About 630 are still in service with approximately 80 operators. The manufacturer said its long-term fleet support program "will continue to enable their operation until the very last airplane is retired from service, with half of the current fleet expected still to be in service beyond 2025." FedEx (FED) operates more than >120 A300Fs/A310Fs, making it the type's largest operator.

Airbus (EDS) delivers its final A300F4-605R (878, N692FE "Gabriel"). A300B4-605RF (709, N731FD), redelivered after conversion.

August 2007: FedEx Express (FED) launched four-times-weekly Memphis - Manchester, England MD-11F freighter service, that will increase daily USA - UK capacity by up to +50%.

727-227F (21670, N496FE), donated to Grand Forks Airport Fire Dept. ATR72-202 (256, N817FX), to Air Contractors (HCA).

September 2007: FedEx (FED) reported net income for its fiscal first quarter ended August 31 of +$494 million, up +4% over a net profit of +$475 million in the year-ago period, on a +8% rise in revenue to $9.2 billion, but lowered its full-year earnings guidance owing to an uncertain USA economy. "FedEx (FED) increased its revenue and earnings against the backdrop of a sluggish USA economy," Chairman, President & CEO, Frederick Smith said. "Outside of the United States, the economy is generally solid . . . I continue to believe that FedEx (FED) will, over the long term, reap the rewards of our strategy of investing in key growth markets and strengthening and expanding our worldwide networks." First-quarter expenses rose +8% to $8.39 billion. Operating income was +$814 million, up +4% over +$784 million last year. The FedEx Express (FED) airline segment reported a +4% gain in revenue to $5.89 billion, and operating income of +$519 million, a +9% improvement over +$475 million in the year-ago period. The delivery giant lowered its full-year earnings forecast -4% to $6.70 to $7.10 per share. "While the USA economy is growing at a moderate pace, recent financial market volatility and high energy costs, have increased the uncertainty surrounding the near-term economic outlook, and weakness in the housing sector continues," Executive VP & CFO, Alan Graf said. "As a result of this weaker than anticipated economic environment . . . we have reduced our earnings forecast." FedEx (FED) said its International Priority package revenue, a good indicator of its air business, grew +9% for the quarter with revenue per package improving +3%, "primarily due to favorable exchange rates and higher weight per package, partially offset by lower fuel surcharges."

727-227F (21395, N478FE), donated to Lake Area Technical Institute. 727-233F (22037), donated to Dallas Fort Worth Airport (DFW). A300B4-604RF (713, N732FD), redelivered after conversion.

October 2007: 757-27B (24137, N916FD), bought from Tel Aviv LLC, ex-(4X-EBY). MD-10-10F (47806, N68052), redelivered.

November 2007: 1st 6 months = 7.77 billion (FTK)s (+4.01%) freight traffic (World highest).

AmSafe said FedEx Express (FED) now is using the AcuTemp RKN container, which employs compressor technology, rather than dry ice to maintain temperature, for appropriate shipping services.

ATR42-300F (135), leased to Morningstar Express (BRS).

December 2007: FedEx (FED) reported net income for its fiscal second quarter ended November 30 of +$479 million, down -6% from +$511 million last year, despite a +6% boost in revenue to $9.45 billion.
Chairman, President & CEO, Frederick Smith cited "high fuel prices and weak USA economic growth" in explaining the profit drop. He added that "challenging near-term economic trends" likely will affect earnings for the remainder of the fiscal year, but said long-term confidence remains high, particularly in its international express business. Expenses rose +7% to $8.67 billion, while operating income dropped -7% to +$783 million. Operating margin of 8.3% was down -9.4% year-over-year, which the company attributed to "substantially higher" fuel costs, and low demand in its signature USA domestic express package business. The FedEx Express (FED) airline segment saw revenue rise +6% to $6.04 billion, and operating income grow +5% to +$531 million from +$508 million last year. International package revenue increased +13% as daily (IP) package volume lifted +5% "primarily due to favorable exchange rates," FedEx (FED) said. Meanwhile, USA domestic revenue per package rose just +1%. FedEx (FED) noted that its results also were affected by continued investments in China, as it establishes and ramps up domestic express delivery in the vast country. The company said it will reduce full-year capital expenditures to $3.1 billion, from a previously forecast $3.5 billion, to help offset weak economic indicators and fuel expenses.

FedEx (FED) is currently not interviewing or hiring pilots (FC).

757-23A (24289, N920FD), bought from AWAS (AWW). MD-10-10F (46602, N366FE), converted. A300B4-622R (630, N743FD), bought from Qatar Airways (QTA), to be converted to freighter.

January 2008: 757-23A (24636, N919FD), bought from (AWAS) (AWW), ex-(G-FJEA).

March 2008: FedEx (FED) posted a -6% drop in net income for its fiscal third quarter ended February 29 to +$393 million compared to +$420 million in the year-ago period, and warned that rising fuel prices and "a weak US economy," likely portend "limited earnings growth" for the current three-month period and its next fiscal year starting June 1. The perpetually profitable express delivery giant's results are considered widely to be a leading economic indicator and the quarterly result and dim outlook announced, added to the growing consensus that the USA economy is confronting a significant slowdown. "FedEx (FED) faces a challenging economic environment, that includes persistently high oil prices, sluggish USA growth and continued concerns in the credit markets," Chairman, President & CEO, Frederick Smith said. Overall revenue rose +10% to $9.44 billion, while expenses increased +11% to $8.8 billion, producing operating income of +$641 million, flat year-over-year. Fuel expense leaped +42% to $1.18 billion.

The FedEx Express (FED) airline unit posted operating income of +$425 million, up +8% from +$395 million, in the year-ago quarter, on a +11% lift in revenue to $6.13 billion. Express operating margin of 6.9% was down -0.3 point. "Operating income and margin were negatively impacted by continued softness in the USA economy . . . and the ongoing cost of investments in the company's China domestic express service," FedEx (FED) said. International priority package revenue grew +18%, as per-package revenue climbed +10% to $57.85, "primarily due to higher fuel surcharges and favorable exchange rates," the company said. Daily IP package volume rose +6% "led by increases in volume originating in Latin America, the USA, and Asia." USA domestic package volume declined -2%, but revenue per package rose +6% to $16.77 owing to increased fuel surcharges. International airfreight per-freight-lb revenue was up +5% to 89 cents.

Looking ahead, Executive VP & CFO, Alan Graf said FedEx (FED) is girding for "limited" growth for the foreseeable future. "We are scrutinizing all expenses and investments to realign them with the current environment," he said. The company projects fiscal-fourth-quarter earnings per share of +$1.60 to +$1.80, down from $1.96 in the year-ago period.

757-23A (24290, N290AN), ex-(G-OOOK).

May 2008: FedEx (FED) lowered its earnings forecast for its fiscal fourth quarter ending May 31, projecting a per-share profit of +$1.45 to +$1.50, down from +$1.60 to +$1.80 it projected in March. Earnings of $1.50 per share would mark a more than >-23% decrease from $1.96 in the year-ago quarter. The delivery giant said that the revised forecast "assumes no additional increases to the current fuel price environment."

757-204 (26266, N923FD), bought from (ILF), ex-(G-BYAF). 757-236 (25054, N910FD), ex-(G-OOOK).

June 2008: Severely affected by weak economic conditions, FedEx (FED) reported a -44% drop in net income for its full fiscal year ended May 31 to +$1.13 billion from +$2.02 billion the previous year. The result included a rare quarterly net loss in the fiscal fourth quarter of -$241 million, reversed from net income of +$610 million in the year-ago period. "Record high fuel prices and the weak USA economy dampened volume growth and substantially affected our bottom line," Chairman, President & CEO, Frederick Smith said. Full-year revenue rose +8% to $38 billion, but expenses increased +12% to $35 billion, including a +30% leap in fuel costs to $4.6 billion. Operating income of +$2.08 billion was down -37% from +$3.28 billion last year.

The FedEx Express (FED) airline segment's fourth-quarter revenue rose +9% to +$6.37 billion, but operating income dropped -31% to +$426 million. International package (IP) revenue grew +16% for the quarter as (IP) revenue per package climbed +11%, "primarily due to higher fuel surcharges and favorable exchange rates," FedEx (FED) said. "(IP ) average daily package volume grew +6%, led by increases in volume from Asia, the United States and Europe. USA domestic revenue per package increased +9% due to increased fuel surcharges and higher rate per pound, while package volume declined by -3%."

FedEx projected companywide income of +$0.80 to +$1.00 per diluted share in the current quarter, which would be a significant drop from +$1.58 per diluted share in the year-ago quarter. "The operating environment for fiscal 2009 is expected to be very difficult, due to the weak USA economy and extremely high fuel prices," Executive VP & CFO, Alan Graf said. "However, we will focus on reducing expenses and remaining cash flow positive."

FedEx (FED) is not interviewing or accepting flight crew (FC) applications.

FedEx Express (FED) received a USA (FAA) supplemental type certificate (STC) for a new avionics system that combines Honeywell's Head Up Display (HUD) and Elbit Systems of America's infrared Enhanced Flight Vision System (EFVS) and plans to install it on its MD-10F freighters. It is the first commercial airline to receive certification for the system that "dramatically improves situational awareness for pilots (FC) during takeoff and landing, the most critical part of any flight," FedEx (FED) said. "Upon activation of the system, pilots (FC) can significantly enhance visibility in poor weather - - including darkness, smoke, smog, haze and other weather events - - while simultaneously seeing critical flight data. This allows the captain (FC) to maintain a heads-up view of his surroundings, eliminating transition time normally needed to look down at cockpit primary flight information. The visual enhancement is similar to that created by infrared night-vision technology used in modern-day defense systems."

The Honeywell (HUD) interfaces with airplane navigational and flight data systems in presenting a high-resolution liquid crystal display of critical flight guidance information. This is overlaid with real-time (EFVS) infrared video of the outside world that is displayed in an overhead unit in the captain (FC)'s forward field of view using (HUD) "combiner" technology. Elbit Systems' Electro-Optics-Elop manufactures the combiner glass.

FedEx (FED)'s MD-10F modification program for (HUD)/(EFVS) will begin this summer and is expected to be completed in 2012. It also anticipates seeking (FAA) approval to expand installation to its entire fleet.

757-2B7 (27124, N903FD), re-delivered after conversion.

August 2008: FedEx Express (FED) launched revenue service with the first of 12 757-200F converted freighters it is scheduled to add over the next year, starting eight-times-weekly flights between Memphis and Washington National (DCA), its first service to (DCA). The 757F is the first of the type to enter the delivery giant's fleet. It is investing $2.6 billion to replace its 90 727-200Fs with 90 757Fs and last year inked a deal with Singapore Technologies Aerospace covering 87 757-200F passenger-to-freighter conversions over seven years. ST Mobile Aerospace Engineering in Alabama is performing the conversion work, valued at $450 to $470 million over the life of the contract.
"Our plans to replace the 727 airplanes with more efficient 757s allow us to aggressively upgrade our fleet, while reducing our overall long-term energy investment," Senior VP Air Operations, Jim Parker said. FedEx (FED) said the 757 will consume -36% less fuel, while providing +20% more capacity than the 727. Transition is expected to be complete by 2016.

September 2008: FedEx (FED) reported net income of +$384 million for its fiscal first quarter ended August 31, down -22% from the same period last year, citing "challenging" economic conditions. Chairman, President & CEO, Frederick Smith said the delivery giant will "continue to hold the line on costs across all segments." It also will raise shipping rates +6.9% from January 5 for domestic USA and USA export services, as part of its effort to compensate for "weaker global macroeconomic conditions."

First-quarter revenue rose +8% to $9.97 billion, while expenses increased +11% to $9.34 billion, producing operating income of +$630 million, down -23% from +$814 million for the same period last year. Fuel costs leaped +66% to $1.6 billion. (FED) posted operating income of +$345 million, down -34% from +$519 million in the prior-year period, on a +9% rise in revenue to $6.42 billion. The company stated that the (FED) results "were impacted by global economic weakness, higher fuel prices and the related negative effects of higher fuel surcharges . . . These factors more than offset the benefits of aggressive cost containment activities" including a reduction in flight hours. FedEx Corp (FED) (NYSE: FDX) reported earnings of $1.23 per diluted share for the first quarter ended August 31, compared to $1.58 per diluted share a year ago. "Global economic conditions are challenging, but FedEx (FED) is taking strong, proactive actions to manage through this difficult cycle," said Frederick W Smith, FedEx Corp Chairman, President & CEO. "We are committed to implementing strategies that will enhance the customer experience, gain market share, reduce expenses, improve profits and ensure the long-term success of the company."

(FED) is upgrading its "international priority" service from Europe to major USA East Coast cities, from two-day to overnight. Packages going to Washington, New York, Philadelphia, the Newark area, Boston, and Baltimore, now will arrive by 3 pm the next day, as part of standard "international priority" service and at current rates. (FED) said it also will offer next-day service for heavyweight freight shipments to the USA East Coast from Brussels, Basel, Copenhagen, Madrid, Paris, Lille, Mulhouse, Eindhoven, Stockholm, Malmo, and Gothenburg. To support the upgrade, the airline will launch a four-times-weekly, westbound transatlantic MD-11F flight from Paris Charles de Gaulle to Newark. The Europe-USA segment, operating daily, Tuesday through Friday, will be part of a westbound "around-the-world" flight.

FedEx (FED) is not interviewing or accepting Flight Crew (FC) applications.

Enigma announced that FedEx (FED) selected the Enigma 3C Platform "to streamline maintenance and service operations for its entire fleet of airplanes." In a phased rollout, FedEx (FED) already is using the solution for custom job card generation and distribution for scheduled and unscheduled maintenance. In the second phase, Enigma "will help manage Original Equipment Manufacturer (OEM) maintenance revisions and publish service information for the entire FedEx (FED) fleet" of more than >800 airplanes.

October 2008: FedEx Express (FED) broke ground on its new European air hub at Cologne/Bonn. (FED)'s primary Central/Eastern European hub currently is located at Frankfurt, but a potential ban on night flights at the airport led it to make the move. The new hub is slated to be completed in 2010. "Moving to Cologne enables FedEx (FED) to plan effectively for the future," President Europe, Middle East, Africa & Indian Subcontinent, Robert Elliot said, citing "the availability of space to expand and more flexible night flight regulations." Rival (UPS)'s European hub is in Cologne. FedEx (FED)'s 50,000-sq-m facility will feature new ramp space and be equipped with automated sorting equipment. The hub will include a 1.4-megawatt solar power system that the carrier said will generate approximately 1.3 gigawatt hours of electricity annually, "equivalent to the annual consumption of 370 households." Solar panels will cover a surface area of 16,000 sq m.

FedEx (FED) currently operates a solar-electric system at its USA West Coast hub in Oakland. Operational since 2005, "the system can provide approximately 20% of the facility's total electricity needs and can meet 80% of its peak load demand," the company claims.

FedEx Express (FED) is installing a newly certificated head-up display (HUD) and infra-red vision system on its MD-10s, which will become standard equipment across the cargo carrier's entire 362-airplane fleet by 2015. (FED) Managing Director Strategic Projects, Joel Murdock told the recent "Cargo Facts" symposium in Miami that the installation of the new (HUD) with enhanced flight vision system technology marks the start of an eight-year retrofit effort that will conclude in 2015. "This technology sees through (fog and haze) with no problems," Murdock said. (FED) will be the first airline in the world to use the new technology.

757-2B7 (27148, N906FD), re-delivered after conversion.

November 2008: FedEx (FED) 1st 6 months = 7.82 billion (FTK)s freight traffic (+.66%).

FedEx (FED) said that it intends to reduce carbon dioxide emissions from its airplane fleet by -20% by 2020. It said it already has reduced CO2 emissions by -3.7% per (ATM) since 2005. Key to the increased efficiency will be the replacement of its 90 727Fs with at least 87 757-200 converted freighters by 2016. The 757s will reduce "fuel consumption up to -36%, while providing +20% more payload capacity," it said. "FedEx (FED) is also reducing the amount of fuel we use when a plane is at the gate by using ground power, instead of airplane power, saving almost one million gallons of fuel per month."

DHL pulled the plug on its five-year push to become the "third alternative" to (UPS) and FedEx (FED) in the USA express shipping market, announcing that all domestic USA services will cease early next year, as it focuses exclusively on international operations to/from 15 - 20 USA metropolitan areas. "The basic reason is that the USA is a highly concentrated duopoly market and the reality is . . . (UPS) and FedEx (FED)'s scale, market reach and brand awareness have made it impossible for us to make it economically viable," DHL Express CEO, John Mullen told reporters in a conference call.

Mullen estimated that DHL lost around -$10 billion over the last five years on its USA venture, including its original investment in purchasing Airborne Express (ABX) and its Wilmington, Ohio, air hub. The company estimates it lost about -$1.3 billion annually on USA operations, "a level of loss that cannot be sustained," he said. He explained that Airborne (ABX) was a "small niche player of low quality," and despite DHL's best efforts, it "never became big enough and never had enough reach to be able to compete with the two incumbents." DHL is "more than willing" to donate the Wilmington airport to the state of Ohio, he added.

The German delivery giant still is conducting negotiations with (UPS) to turn over the domestic line-haul flight portion of its international shipments to/from the USA to its rival. But the volume carried by (UPS) will be far lower than what originally was envisioned when the two announced their intent last spring to negotiate an agreement under which (UPS) would take over DHL's US air lift from (ABX) Air and Astar Air Cargo (DHL), dropping from about 1.2 million daily shipments to 100,000.

Mullen said he hoped the DHL-(UPS) deal will be finalized by year end. Total job losses at (ABX), Astar (DHL) and DHL owing to the domestic services shutdown are expected to top -9,500. Those cuts are in addition to -5,400 DHL USA jobs already slashed this year.

DHL envisions operating international flights into five USA gateways, likely including New York, Los Angeles and Louisville, and using line-haul contract flights operated by (UPS) Airlines to reach 15 to 20 markets that cover about 80% to 90% of its international shipping in the USA. It will contract smaller cargo operators to reach the remaining 10% to 20%, Mullen said. DHL generates about $4.5 billion annually in USA revenue, about $1 billion of which comes from international services.

FedEx (FED) said that it has pushed back the opening of its new Asia/Pacific hub at Guangzhou Baiyun from next month to "the first half of 2009," adding, "The revised operations date provides FedEx (FED) with the necessary time to fully test all systems and processes, as well as work closely with the Guangzhou authorities to ensure all necessary approvals are in place." The $150 million, 82,000-sq-ft facility will replace the express operator's Subic Bay hub.

SEE ATTACHED - - "FED-2007-TOP-WLD-CARGO."

December 2008: FedEx (FED) reported net income of +$493 million for its fiscal second quarter ended November 30, up +3% compared to +$479 million in the year-ago period, and announced it is initiating "broad cost reduction actions" to contend with a "decline in shipping trends" and "very difficult" economic conditions. (FED) implemented a hiring freeze, a -7.5% to -10% salary reduction for senior executives and a -5% pay cut for salaried personnel exempt from labor contracts. Chairman, President & CEO, Frederick Smith said his salary would be lowered by -20%. Additionally, matching 401(k) contributions will be suspended for a year from February 1, an unspecified number of jobs will be eliminated in the Freight & Office units and there will be discretionary spending cuts. All told, (FED) expects to reduce expenses by -$200 million for the remainder of Fiscal Year (FY) 2009 and by another -$600 million for (FY) 2010.

Smith cited "some of the worst economic conditions in the company's 35-year history," and CFO, Alan Graf said that despite expected new business in the domestic market owing to DHL's USA pullout, "significant uncertainty exists in the global economy." Nevertheless, the steep drop in fuel prices during the fiscal second quarter, prevented an earnings decline. Revenue rose +1% to $9.54 billion, while expenses increased +1% to $8.75 billion, and operating income was flat at $784 million.

The (FED) airline unit posted a +1% increase in revenue to $6.1 billion and a +2% lift in operating income to $540 million in the quarter. International Priority package revenue, highly dependent on air operations, grew +1% owing to higher fuel surcharges but average daily (IP) package volume lowered -7%. USA domestic express package volume declined -8%.

(FED) announced drastic cuts in pay and deferred compensation for most of its USA workforce. Salaried USA (FED) employees will take permanent -5% to -10% base salary reductions, while (FED) founder, CEO & Chairman, Fred Smith will take a permanent -20% reduction in base salary. According to company statements, hourly employees will not see base wages impacted in this round of cost controls. "The (FED) workers that have made this company a household name and deliver the profits will now shoulder more insecurity for their futures," said Teamster General President, Jim Hoffa. "At the busiest time of their delivery season, the company is delivering nothing but coal for its workforce." More dramatically for hourly employees, bonus compensation and the company's 401(k) matching contribution will cease for 2009. This unilateral decision to stop 401(k) matches, closely follows the June 2008 capping of (FED) employees' defined benefit pension. In announcing the end of the defined benefit plan in 2007, (FED) said, "Planning and saving for retirement is a partnership between (FED) and its employees, and we are committed to helping our employees enjoy a financially sound future." Apparently, that "partnership" is no longer part of the corporation's future.

Although garnering headlines for his salary adjustment, Smith meanwhile retains $26,411,752 accrued under the (FED) Retirement Parity Pension Plan and $1,164,464 under the Employees' Pension Plan. Additionally, Smith's $1.4 million salary only comprised 13% of the $10.9 million that he raked in for 2008. In fact, 55% of Smith's 2008 pay was in stock options not tied to any performance goals. As of May 31, Smith also held currently exercisable, in-the-money options worth $24.9 million, based on the closing stock price. In the past two years alone, he's exercised options worth more than >$60 million. (FED) has not clarified if the company's variable compensation changes will affect Smith's outstanding, exercisable options or if (FED) will suspend option grants for 2009. "(FED) workers have seen their wages stagnate, their health care costs go up and their retirement benefits go down or go away entirely while (FED) has pocketed millions in profits in good times," said Teamsters Vice President At Large & Package Division Director, Ken Hall. "Many (FED) workers already see Teamster representation as a way to secure their future and these drastic measures will convince more of the value of a Teamster contract." The difference in pay and compensation between management and workers is one factor leading (FED) workers to seek Teamster representation. The broken "Purple Promises" on wages and retirement benefits were the subject of a public "Blue Ribbon Commission" hearing on December 16, jointly sponsored by the Teamsters, the Los Angeles County Federation of Labor, and Clergy, and Laity for Economic Justice/Los Angeles (CLUE LA). Blue Ribbon Commission members USA Representative Linda Sanchez; Los Angeles City Councilman, Bill Rosendahl; and United Methodist Church (Los Angeles) Bishop, Mary Ann Swenson heard testimony from a number of (FED) workers on their deteriorating work conditions and struggles to hold onto the middle class life. "I could afford to retire at age 62 under the defined benefit pension plan but with the stroke of a pen, and with little warning and no input or discussion from employees, (FED) changed our retirement plans," said Dan Forrand, a 15-year veteran airplane maintenance technician (MT) from (FED) in Los Angeles. Now, as the economy suffers and (FED) employees' retirement security is in greater jeopardy, (FED) has pulled a bait and switch more drastic than even Forrand knew. Forrand's statement and other testimony and questions are archived online at http://www.fedxmx.com. Additional information is at http://www.FedExWatch.com.

Founded in 1903, the Teamsters Union represents more than >1.4 million men and women in the United States, Canada, and Puerto Rico.

(FED) says it has reached an agreement with Boeing (TBC) that will allow (FED) to delay delivery of new 777F airplanes by up to 17 months. (FED) originally planned to operate 15 of the 777F freighters by 2011, but the final two deliveries are now scheduled for 2013.

757-23A (24636, N919FD), re-delivered after conversion. 757-2T7 (23923, N936FD), bought from Regal Asset Development, ex-(G-MONE). Cessna 208B (223), parted out to Preferred Airparts.

January 2009: The new FedEx (FED) business model for New Hampshire Ground operations represents the company's latest strategy to skirt laws meant to reign in the mis-classification of independent contractors and introduces new concerns for investors. "(FED) has exposed investors to exorbitant legal and tax liabilities by mis-classifying drivers as independent contractors across the country for years," said Teamsters General President, Jim Hoffa. "This new scheme to evade their responsibilities to the men and women who deliver for the company's most profitable business segment will continue to expose investors to costly problems."

According to company documents, New Hampshire contractors will individually negotiate their own service contract with the company rather than sign the (FED)-provided Operating Agreement suggesting that (FED) will give up important controls that ensure customer service and operational efficiency. (FED) claims that these contractors will not be required to use (FED)-approved drivers, trucks, scanners, or uniforms; they will be individually responsible for managing all of the logistics of their service areas including meeting the complex demands of seasonal volume fluctuations; and they will have the right to refuse pick-ups and deliveries under certain circumstances.

If implemented as proposed, the (FED) New Hampshire plan is similar to the chaotic Independent Cartage Carriers (ICC) model DHL Express used for half of its USA network. That model, which DHL inherited from Airborne Express (ABX), relied on more than >600 different (ICC)'s (employing approximately 12,000 drivers) at a given time. The tight margins dictated by this type of relationship made for high turnover among the (ICC)'s as well as the drivers. This past fall DHL Express announced it was leaving the domestic USA market after sustaining losses of $1 billion in each year since the (ABX) purchase.

"(FED) investors cannot afford to gamble on another scheme that will either add to the company's legal and regulatory problems or undermine customer service in this competitive industry," Hoffa said.
The International Brotherhood of Teamsters was founded in 1903 and represents more than 1.4 million men and women throughout the United States, Canada and Puerto Rico.

FedEx (FED) exercised options on 15 777Fs valued at $3.75 billion, bringing its firm backlog for the type to 30, and took options on an additional 15. (FED) originally ordered 15 777Fs plus 15 options in November 2006, when it cancelled an order for 10 A380Fs owing to Airbus (EDS) production delays on the now-suspended large freighter program. (FED) already had pushed back deliveries of the original 15 777s from one to 18 months, with the first to arrive in September 2009, at least two months later than originally planned. Three will be delivered in this calendar year instead of a previously planned four and five will be delivered in 2010 instead of eight, followed by three in 2011 and four in 2012. Deliveries of the newly ordered airplanes are slated for 2013 through 2018.

Boeing (TBC) now has firm orders for 88 777Fs, for which (FED) is the largest single customer. (FED) said in a regulatory filing that the 15 exercised options will increase capital expenditures by $2.75 billion over the next decade, indicating that it has reached an agreement with (TBC) to purchase the airplanes collectively at $1 billion below list prices. (FED) plans to use the airplanes for direct long-haul flights between major markets in the USA, Europe and Asia.

ACCDT: A (FED) ATR42-320 (175, N902FX) operated by Empire Airlines crashed on landing at Lubbock, Texas, early morning, leading to a fire that destroyed the airplane. Both crew members (FC) survived. En route from Fort Worth Alliance, the airplane skidded off the runway after touching down and the right wing caught fire, according to Flight Safety Foundation's Aviation Safety Network (ASN). The accident occurred just after 4:30 am in poor weather conditions that included "freezing drizzle and mist," (ASN) reported. (FED) said the two pilots (FC) escaped with only "minor injuries."

757-2B7 (27199, N933UW), bought from Babcock & Brown (BBB).

February 2009: FedEx (FED) launched operations at its new Asia/Pacific air hub at Guangzhou Baiyun, China. The $150 million, 82,000-sq-ft facility replaces (FED)'s Subic Bay, Philippines hub and is capable of processing 24,000 packages per hour. (FED) will operate 136 weekly flights into Guangzhou, which the company said is particularly well positioned to serve the high-tech electronics industry. The complex features its own ramp control tower, enabling (FED) to have direct control over airplane movements. It also is equipped with a customs clearance facility dedicated to (FED). The hub originally was supposed to open in December.

2 orders MD-11F (48755, N573FE; 48769, N572FE), ex-(PT-MSH; PT-MSJ).

727-277F (21480, N243FE), WFU at Victorville and parted out. 757-2T7 (22780, N935FD), bought from Regal Asset Development Ltd, ex-(G-MONB). 757-28A (24367, N914FD), bought from (ILFC) (ILF).

March 2009: FedEx (FED) reported net income of +$97 million for its fiscal third quarter ended February 28, down -75% from a +$393 million profit in the year-ago period, blaming "the continued deterioration in global economic conditions." Chairman, President & CEO, Frederick Smith said the "sharply lower" results and the "severity and expected duration of the recession require that we take additional [cost reduction] actions." He said (FED) will cut network capacity in both its Express and Freight operations, cut an unspecified number of personnel and work hours, expand previously announced pay reductions to non-USA workers and generally tighten expenditures.

The company in December implemented a hiring freeze, a -7.5% to -10% salary reduction for senior executives and a -5% pay cut for salaried USA personnel exempt from labor contracts (Smith said his salary would be lowered by -20%). It also deferred deliveries of 15 new 777Fs by one to 18 months depending on the airplane and suspended matching 401(k) contributions. It said the cost-reduction measures will result in fiscal fourth quarter charges of $100 million but will reduce fiscal 2009 to 2010 costs by approximately -$1 billion. Smith emphasized that the cuts will not "impede" customer service.

Third-quarter revenue dropped -14% to $8.14 billion while expenses lowered -10% to $7.96 billion, producing operating income of +$182 million, down -72% from +$641 million in the year-ago period. The (FED) Express airline operation posted a -18% decline in revenue to $5.05 billion and a -12% fall in expenses to $5.01 billion, producing operating income of +$45 million, down -89% from +$425 million last year.

Its International Priority (IP) product, heavily dependent on air operations, saw package volume fall -13%, "with declines in every international region," (FED) said. (IP) revenue per package decreased -8%, hurt by lower fuel surcharges ((FED) benefited from high fuel surcharges in the fiscal second quarter) and unfavorable exchange rates. (FED)'s USA domestic package volume dipped -3% "despite the benefit of DHL exiting" the USA market.

The company expects fiscal fourth-quarter earnings to be down at least -51% year-over-year to $0.45 to $0.70 per diluted share.

ACCDT: A (FED) MD-11F (PW4460) (560-48600, /94 N526FE) (Total (all flights) flight time: 40,706 flt hrs) crashed early Monday morning (March 23) amid heavy winds at Tokyo's Narita International Airport and burst into flames. Police spokesmen Yoshino Ichihara says the pilot (FC) and copilot (FC) — the only people onboard the flight — were confirmed dead Monday morning at a hospital near Tokyo's Narita Airport.

The flight from Guangzhou China crashed onto a runway at Narita Airport and was immediately swarmed by firefighters and rescuers. The pilot (FC) and copilot (FC) were extracted from the cockpit and taken to a local hospital. Their deaths were announced later. Television footage showed the plane bounce and then burst into flames as it skidded to a halt on runway 34L. The twisted remains of the plane were still smoking hours after the crash.

Video of the crash showed the MD-11F landing hard, lifting back into the air briefly and then bouncing on its front and then rear ends. The left wing hit the runway, starting a fire as the MD-11F rolled. The crash occurred at 6:50 am and closed the longer of (NRT)'s two runways, forcing Japan Airlines (JAL)/(JAS) and (ANA) to cancel at least 40 flights combined.

The "Daily Yomiuri" reported that the Narita Aviation Weather Service Center issued a wind shear warning for below 500 m at the time of the accident. It added that nine airplanes landing "just before the accident reported to the control tower that they had experienced wind shears below 600 m. The control tower subsequently relayed this information to the (FED) flight crew (FC) when it granted the plane permission to land . . . The control tower also told the flight crew (FC) that the wind around the runway was blowing from the northwest at 52.2 km per hour, with maximum wind speeds reaching 64.8 km per hour." Japan's Transport Ministry said it launched an investigation and conceded that wind shear was a possible cause.

The crash was nearly identical to two previous landing accidents involving MD-11s, one a Mandarin Airlines (MDN)/China Airlines (CHI) airplane at Hong Kong in August 1999 and the other a (FED) MD-11 in Newark in July 1997. In both cases, the MD-11s cartwheeled after unstable touchdowns. The 1997 (FED) crash was attributed to the captain's (FC) "over-control of the airplane during the landing and his failure to execute a go-around from a destabilized flare," according to the USA National Transportation Safety Board (NTSB). In that accident the captain (FC) and copilot (FC) survived.

(FED) said the pilots (FC) who died in Monday's crash were Captain Kevin Mosley, 54, who had 12,800 total career flight hours, and First Officer Anthony Pino, 49, who had 6,300 hours. "This loss pains all of us at (FED)," Chairman, President & CEO, Frederick Smith said. "We will continue to work closely with the applicable local authorities and the (NTSB) as we seek to determine the cause of this tragic accident." - SEE ATTACHED PHOTO - - "FED-ACCDT-2009-03."

SEE THE FOLLOWING JAPAN TRANSPORT SAFETY BOARD INTERIM REPORT OF AIRCRAFT ACCIDENT INVESTIGATION: April 16, 2010:

http://www.mlit.go.jp/jtsb/eng-air_report/N526FE.pdf

(FED) said that it will cancel 15 firm orders for 777Fs if a proposed USA House of Representatives bill that calls for (FED) to be governed by the National Labor Relations Act (NLRA) rather than the Railway Labor Act (RLA) becomes law. (FED) will begin taking delivery of 15 777Fs in September and those deliveries are not in jeopardy. But earlier this year it exercised options on 15 additional 777Fs valued at $3.75 billion, bringing its firm backlog for the type to 30, and took options on an another 15. It said that its agreement with Boeing (TBC) contains a clause that allows it to cancel the order if its labor status is changed.

(FAA) re-authorization legislation cleared by the House Transportation & Infrastructure Committee, already controversial because it seeks to sunset airline alliances' antitrust immunity every three years, includes a provision that would switch (FED) from the (RLA) to the (NLRA). Since (FED) was founded as an airline in 1971, it has fallen under the jurisdiction of the (RLA), which forces railway and airline workers to go through a long arbitration process before taking work actions and bars the formation of localized unions. Rival (UPS), considered a trucking company, falls under the (NLRA), which allows workers to organize on a local level and has fewer barriers to work actions. (UPS) long has lobbied for a change in (FED)'s status. The International Brotherhood of Teamsters, which represents truck drivers and other workers at (UPS), also has pushed for the change so it can unionize (FED) workers. Currently only (FED) pilots (FC) are unionized.

(FED) said the change would create "upheaval" and that it no longer would be able to afford the additional 777Fs, "30 out of 45 airplanes we won't be buying if our (RLA) status is changed by Congress," a company spokesperson told "Reuters."

Avondale Partners analyst Donald Broughton wrote in a research note that "thousands of jobs" at (TBC) and (GE) could be affected if (FED) were to cancel its 777F order. "We find it more than a bit intriguing that now congressmen will have to vote against (TBC), (GE) and the creation of thousands of unionized jobs for machinists . . . in order to change the labor law status of (FED) in an attempt to possibly help the Teamsters union," he commented.

(TBC) has taken no official position on the legislative proposal. House Transportation Committee Chairman, James Oberstar (Democrat-Minnesota), who spearheaded the (FAA) re-authorization bill, dismissed (FED)'s statements as "huffing and puffing."

April 2009: FedEx (FED) revealed in a regulatory filing that it will "permanently remove" 10 A310-200Fs and four MD-10Fs from service by May 31. "This decision reflects management's ongoing efforts to optimize the company's express network in light of continued excess airplane capacity due to weak economic conditions and the expected delivery of newer, more fuel-efficient airplanes in fiscal year [2009 to 2010]," it informed the USA Securities & Exchange Commission. (FED) will take a $180 million charge related to the retirements in its fiscal fourth quarter ending May 31. (FED) has 30 777Fs on order for delivery through 2018, the first three arriving this year. It also is replacing its 727-200Fs with at least 87 757-200F converted freighters by 2016. It said a "limited amount of the company's total airplane capacity remains temporarily grounded because of network overcapacity."

727-233F (21102, N219FE), stored at Victorville. 2 DC-10-30Fs (48298; 48299), parted out at Victorville.

May 2009: 727-277F (22068, N246FE), donated to Mid America Transportation & Aviation Museum. 757-2T7 (23895, N513NA), bought from CIT Group (TCI). 757-23A (24291, N917FD) and 757-236F (25054, N910FD), converted to freighter. A310-203Fs (254; 326; 335; 355), and A310-222Fs (339; 346) WFU at Victorville and parted out.

June 2009: FedEx (FED) Express, the shipping giant's airline segment, finished its fiscal year ended May 31 with a +$794 million operating profit, down -58% from the +$1.9 billion reported in 2007 to 2008, while the company suffered a -91% plunge in consolidated profit to +$98 million. "The operating environment for our first two quarters in fiscal 2010 is expected to be extremely difficult," corporate Executive VP & CFO, Alan Graf Jr said. "Manufacturing activity is expected to be substantially negative year-over-year through the summer . . . Also, the recent run-up in fuel prices will have a significant negative impact on our first quarter's results." He said there was not sufficient visibility to provide a full-year forecast but that (FED) is "poised for growth in our fiscal second half as our many cost-saving initiatives gain traction and the economy begins to improve."

(FED)'s full-year revenue fell -8% to +$22.36 billion and expenses declined just -4% to $21.57 billion. Average daily freight dropped -15% and composite package yield was down -4% to $21.30.

In the fourth quarter, the airline suffered an operating loss of -$136 million, reversed from a +$426 million profit in the three months ended May 31, 2008, on a -25% decline in revenue to $4.8 billion. The removal of 10 A310-200Fs and four MD-10F freighters, termination of certain airplane-related leases and contracts and layoffs resulted in $260 million in charges that resulted in the deficit. (FED) said reduced flight and labor hours, fuel consumption and a "continued focus on aggressive expense reductions" helped offset falling revenue and rising fuel prices.

FltOps.com, an assistance service for professional pilots (FC), recently released a report of what each major USA carrier pays its captains and first officers. For the eleven largest USA airlines, including freight carriers FedEx (FED) and (UPS), the average annual pay for a first-year first officer flying the smallest mainline airplane is about $36,000. But the range between the best and worst paying airlines is large, with (FED) paying $51,000 and US Airways (AMW)/(USA) just $22,000. Southwest Airlines (SWA) is the second highest paying at the entry level ($50,000), while Continental Airlines (CAL) and United Airlines (UAL) are tied for second last at $27,000. At the other end of the scale are long tenured captains flying the largest airplanes, who earn an average of $165,000 per year. Again, the cargo carriers are tops with (UPS) and (FED) paying $231,000 and $211,000, respectively. The best paying passenger airline is (SWA) ($181,000), quite remarkable considering its pilots (FC) only fly narrow body 737s. The worst is JetBlue (JBL) ($123,000). Flt.Ops.com notes that pilots (FC) can earn considerably more than their base pay through international overrides, overtime work, per diems and other items.

Recently released federal government employment figures for airline pilots (FC) and mechanics (MT) run counter to data compiled by private organizations and the personal stories of highly-trained pilots (FC) standing in unemployment lines. FltOps.com recently held a pilot (FC) recruiting conference in Dallas-Fort Worth in which only a handful of airlines were on hand to interview pilots (FC). Last year’s event drew 35 airlines, spelling out how drastic the drop in pilot (FC) hiring has been, as air carriers quit hiring and in many case furlough pilots (FC). FltOps.com says the 15 largest USA airlines it tracks hired 2,300 pilots (FC) in 2006 and 2,440 in 2007. But last year, only 1,300 pilots (FC) found jobs. Through the first four months of 2009, only 28 new pilots (FC) joined the 15 air carriers. FltOps.com’s figures jive with that of AIR Inc, the aviation career information service, that for two decades served as a reservoir of data on pilot (FC) hirings. But if anyone needed more evidence of the worsening condition of the airline industry, Air Inc in February this year, shuttered its operation as a result of the sorry state of the economy worldwide, which has produced a dearth of new commercial pilot (FC) jobs as legacy airlines shed capacity, implementing pilot (FC) furloughs and layoffs while also putting off new flight deck crew (FC) hiring.

By the end of 2008, as the recession deepened, it became clear that the future would be bleak for newly minted flight school graduates. Air Inc said airline pilot (FC) hiring totals for 2008 were less than half of what they were the previous year, 6,479 compared to 13,157 in 2007.

However, the federal government says USA scheduled passenger airlines employed +2.3% more pilots (FC) and +5.9% more maintenance (MT) workers in 2008 than in 2007, while total industry jobs declined by -3.0%. According to the USA Department of Transportation (DOT)’s Bureau of Transportation Statistics (BTS), the seven large network carriers employed +1.1% more pilots (FC) and +8.6% more maintenance (MT) workers in 2008 than in 2007. The seven largest low-cost carriers (LCC)s employed +5.2% more pilots (FC) and -6.8% fewer maintenance (MT) workers from 2007 to 2008.

Delta Air Lines (DAL) had the largest increase in pilots (FC) of any network airline from 2007 to 2008,K while Alaska Airlines (ASA) had the greatest percentage decrease in pilot (FC) employment of the network airlines. United Airlines (UAL) had the largest increase in maintenance workers of any network airline from 2007 to 2008, while Northwest Airlines (NWA) had the smallest increase.

All of the low-cost carriers (LCC)s except Frontier Airlines (FRO) added pilots (FC) from 2007 to 2008. Spirit Airlines (SPR) had the largest increase in pilot (FC) employment followed by Allegiant Airlines (WJE). (WJE) had the largest increase in maintenance (MT) workers of any low-cost airline from 2007 to 2008, while (SPR) had the largest reduction. The seven network carriers employed 13.2 pilots per airplane in 2008, down from 13.5 pilots (FC) per airplane in 2007. The (LCC)s employed 11.2 pilots (FC) per airplane in 2008, down -1.8% from 11.4 pilots (FC) per airplane in 2007.

Alaska Airlines (ASA) had 12.0 pilots (FC) per airplane in 2008, down from 12.9 (FC) per airplane in 2007, the fewest of any network airline. Delta (DAL), with 14.9 per airplane, up from 14.3 per airplane in 2008, had the largest increase in the number of pilots (FC) per airplane from 2007 to 2008 and had the most pilots (FC) per airplane of any network carrier.

Allegiant (WJE) had 9.3 pilots (FC) per airplane in 2008, the fewest of any (LCC), compared to 9.6 pilots (FC) per airplane in 2007. Spirit (SPR), with 15.5 (FC) per airplane, up from 12.6 (FC) per airplane in 2007 had the most pilots (FC) per airplane in the (LCC)s group.

As regards airline mechanics (MT), the (BTS) said the passenger airlines had 8.9 maintenance (MT) workers per airplane in 2008, up from 8.3 per airplane in 2007. The network airlines had 12.9 maintenance (MT) workers per airplane in 2008, up from 12.3 (MT) per airplane in 2007. Spending by network airlines for outsourced maintenance increased from 42.5% of total maintenance spending in 2007 to 42.8% in 2008. The (LCC)s had 3.2 maintenance (MT) workers per airplane in 2008, down from 3.7 (MT) per airplane in 2007. Spending by (LCC)s for outsourced maintenance increased from 52.1% of total maintenance spending in 2007 to 54.6% in 2007.

(NWA) had 0.8 maintenance (MT) workers per airplane in 2008, the fewest of any network airline and unchanged from the 0.8 employees per airplane in 2007. (NWA)’s spending for outsourcing maintenance declined from 71.0% of total spending in 2007 to 65.9% in 2008. American Airlines (AAL) had 22.4 maintenance (MT) workers per airplane in 2008, the most of any network airline. (AAL)’s spending for outsourcing was 23.6% of total maintenance spending in 2008, the lowest percentage spending share of the network carriers.

Virgin America (VUS) had 1.7 maintenance (MT) workers per airplane in 2008 the fewest of any (LCC). Of the (LCC)s, Spirit (SPR) spent the smallest portion of its maintenance expense on outsourcing at 22.6%. Southwest (SWA) had the highest percentage share for outsourcing at 61.3%. Frontier (FRO) had 3.9 maintenance (MT) workers per airplane in 2008, the most of any (LCC) but down from 7.7 (MT) employees per airplane in 2007. (FRO)’s spending for outsourcing increased from 20.5% of total maintenance spending in 2007 to 24.9% in 2008.

In the news, Alaska Airlines (ASA) and its mechanics (MT) union produced a tentative agreement on a two-year contract extension, through October 17, 2011. The Aircraft Mechanics Fraternal Association (AMFA) represents 655 airline technicians (MT). (ASA) and the union announced that they expect the results of the ratification vote by late July. (AMFA) is the largest craft union representing airplane maintenance technicians (MT) and related employees and serves members at (ASA), Mesaba Airlines and (SWA).

But (SWA) pilots (FC) rejected a tentative five-year contract that would have increased their salaries and retirement benefits. Work to reopen contract talks with (SWA) will begin immediately, said Carl Kuwitzky, President of the (SWA) Pilots’ Association. Almost 51% of pilots (FC) voted against the agreement, which was reached in January after >2 years of talks. In the interim, the existing contract remains in effect. >95% of pilots (FC) voted. "We are naturally disappointed and acknowledge it was a very close vote," said Chuck Magill, VP Flight Operations for (SWA). "We reached a tentative agreement in good faith, and both sides put a lot of effort into getting to this point. We have an outstanding and highly productive group of Pilots (FC), and we appreciate their active involvement in the voting process. We welcome the opportunity for our negotiating teams to re-engage and work toward an agreement that best meets the needs of our company and our outstanding pilots during these challenging economic times."

Meanwhile, it is reported that the skies aren’t so friendly for Steffan Schmidt and Chris Campbell. They were recently found on a street in Seattle, at rush hour, holding signs more often used by panhandlers. “Two laid-off pilots (FC)” read Schmidt's sign. “Will Fly for Food” Campbell’s sign said. It’s a small industry, and there aren’t a lot of pilot (FC) gigs on Craigslist or Monster, said Campbell, who lost his job flying a corporate airplane. Schmidt was laid off from his job flying a corporate plane three months ago, and figured they would get some “exposure” by standing at a busy freeway ramp. “The normal way to find employment didn’t cut it,” he said. Schmidt said he wanted to get off unemployment, and not “waste any more tax dollars.” They're seeking pilot (FC) jobs, not handouts, but passersby offered them money and books, which they politely declined.

The IATA (ITA) board agreed to appoint David Bronczek, President & CEO, of FedEx Express (FED), to serve as Chairman following Cathay Pacific (CAT)'s Tony Tyler in June 2010.

757-204 (27238, N925FD), bought from Sojitz Leasing. 757-225 (22691, N941FD), bought from CIT Group (TCI), ex-(TF-LLZ). 757-23A (24924, N924AW), bought from (AWAS) (AWW). MD-11ERF (48755, N730BC), bought from (MDC).

July 2009: 727-227F (21463, N481FE), and 727-233F (20936, N254FE), WFU and stored. 757-2B7 (27198, N934UW), bought from (BBB). MD-11ERF (48769, N746BC), bought from RGL-3. A300B4-622R (688, N746FD), converted and redelivered.

August 2009: 727-277F (22068, N246FE), WFU. 757-204 (26267, N924FD), bought from (ILF), ex-(G-BYAK). 757-23AF (24291, N917FD) converted to freighter.

September 2009: FedEx Corporation reported a +$181 million net profit in its fiscal first quarter ended August 31, down -53% from the +$384 million earned in the year-ago period, as operating income at its FedEx Express (FED) segment plunged -70% to +$104 million.

Chairman, President & CEO, Frederick Smith said that "better-than-expected FedEx International Priority volume" and "decisive management actions" boosted the result "above our initial expectations." Company revenue fell -20% to $8.01 billion, expenses were down -18% to $7.69 billion and operating income declined -50% to +$315 million from the +$630 million reported in the year-ago quarter.

The airline segment (FED) suffered a -23% drop in second-quarter revenue to +$4.92 billion and the aforementioned -70% decline in (EBIT) from the -$345 million reported last year. USA domestic package revenue was down -22% despite a slight increase in volume. International Priority revenue also fell -22% on a -20% drop in revenue per package and a -4% slip in volume.

"Results were negatively impacted by continued global economic weakness and substantially lower fuel surcharges, partially offset by gains from DHL's exit from the USA domestic package market," FedEx (FED) said, adding that it cut expenses thanks to lower fuel prices and consumptions, reduced flight and labor hours and "other aggressive actions."

It expects fiscal second-quarter earnings per share of $0.65 to $0.95, down from $1.58 in the period ended November 30, 2008. Effective January 4, 2010, it will increase shipping rates by an average of +5.9% for USA domestic and export services. It said the increase will be offset partially by adjusting the fuel price at which it adds a surcharge, reducing it by -2% points.

(FED) took delivery of the first of 30 777 freighters on order. By April 2010, (FED) plans to have four 777Fs flying between Asia and the USA. The 777F is (FED)'s first Extended Twin-engine Operations (ETOPS)-rated airplane. It will be assigned to the Memphis-Anchorage route before moving to nonstop trans-Pacific service to Guangzhou, China in January 2010. 15 777Fs are due in the (FED) fleet by April 2014, replacing MD-11Fs.

(FED) said flight time will be 1 to 3 hour faster than the MD-11F. Deliveries will continue through 2019.

727-233F (21102, N219FE), sold. 757-225 (22612, N226CL), bought from the CIT Group (TCI). 757-2B7F (27145, N905FD) and 757-21B (24330, N933FD), converted to freighter. 777FS2 (37221, N850FD), delivery. DC-10-30F (48313, N315FE), removed from storage for conversion to freighter. A310-203F (241, N424FE; 273, N409FE; 359, N411FE; 360, N412FE; and 400, N414FE), WFU at Victorville and parted out.

October 2009: FedEx (FED) is not interviewing or accepting pilot (FC) applications.

SEE ATTACHED FLIGHT INTERNATIONAL ARTICLE - - "FED-777F NEWS-2009-10" AND AIRWAYS NEWS - - "FED-777F NEWS-2009-10-A."

727-233F (22035, N270FE), donated to Southern University (Shreveport), 727-277F (21178, N242FE), nose/wings/tail donated to Santa Monica Museum of Flying. 757-23AF (24293, N922FD), converted to freighter. 2 A310-203Fs (349, N415FE; 353, N442FE) and 2 A310-222Fs (217, N449FE; 313, N452FE), WFU at Victorville and parted out.

November 2009: 777FS2 (37724, N853FD "Talon") delivery.

757-28AF (24017, N913FD), converted to freighter.

December 2009: The USA Air Transport Association (ATA) announced that 15 airlines have signed Memos of Understanding (MOU)s with either AltAir Fuels, Rentech or both expressing nonbinding commitment to support future biofuel supply. Air Canada (ACN), American Airlines (AAL), Atlas Air (TLS), Delta Air Lines (DAL)/(NWA), FedEx Express (FED), JetBlue Airways (JBL), Lufthansa (DLH), Mexicana (CMA), Polar Air Cargo (PAO), United Airlines (UAL), (UPS) Airlines, and US Airways (AMW)/(USA) signed with both providers. Alaska Airlines (ASA) and Hawaiian Airlines (HWI) went with AltAir only and AirTran Airways (CQT) signed with Rentech. The (ATA) said discussions with additional fuel producers "about other projects" have started. "This agreement is a significant step forward, establishing a framework for a large group of diverse carriers to negotiate a definitive fuel purchase agreement," Rentech President & CEO, D Hunt Ramsbottom said.

AltAir is working on producing some 75 million gallons of jet and diesel fuel derived from camelina oils or comparable feedstock per year at a new plant in Anacortes, Washington, USA. Rentech plans to produce around 250 million gallons per year of synthetic jet fuel derived principally from coal or petroleum coke near Natchez, Mississipi, USA with the resultant carbon dioxide sequestered and the carbon footprint potentially further reduced by integrating biomass as a feedstock. Last summer, eight airlines operating at Los Angeles International (LAX) signed a deal with Rentech for the supply of a renewable synthetic diesel fuel for use in ground service equipment (GSE).

777-FS2 (37722, N851FD "Yume"), delivery.

757-2B7F (27199, N933UW), coverted to freighter.

January 2010: FedEx (FED) said it has deployed the first of 30 777Fs it is slated to receive by 2019 on Shanghai - Memphis service. It did not reveal flight frequency. (FED) said it will be operating four 777Fs between Asia and the USA by April.

2 MD-10-10Fs (46608, N370FE; 46612, N374FE) and A310-222F (333, N417FE), WFU at Victorville.

March 2010: FedEx Corporation reported a $239 million net profit in its fiscal third quarter ended February 28, more than double the $97 million posted in the year-ago period, driven by significant improvement at its FedEx Express segment.

"Outstanding execution of our business strategy and an improving global economy drove solid financial performance," Chairman, President & CEO, Frederick Smith said. Group revenue was up +7% to $8.7 billion and operating income soared to $416 million from $182 million in the quarter ended February 28, 2009.

"Revenue and earnings increased as a result of higher shipment growth, particularly in international express and at FedEx Ground. Strict cost controls also benefited results," the company said.

Express revenue rose +8% to $5.44 billion and operating income surged to $265 million from $45 million in the year-ago quarter. International Priority daily package volume was up +18%, fueled by exports from Asia, and IP revenue climbed +49%. On the USA domestic front, average daily volume inched up 1% and revenue per piece "declined slightly," FedEx (FED) said.

"In the fourth quarter, we expect to grow our revenue and earnings through increased demand," Executive VP & CFO, Alan Graf Jr said. "With our improved performance and outlook, we are reinstating various employee compensation programs, which will dampen earnings growth in the fourth quarter and fiscal year 2011. We are also continuing to invest in long-term projects that improve service and reduce operating costs, such as long-range, fuel-efficient 777 freighters." The company is scheduled to take delivery of 30 777Fs this decade.

777F28 (32969, N449BA), bought from Air France (AFA). 777FS2 (37723, N852FD "Xuan-Rui"), delivery.

FedEx Express (FED) sells DC-10-30CF (46800, N301FE) to Project ORBIS (ORS). 727-247F (21327, N233FE), returned from Morningstar (BWL).

May 2010: The USA (FAA) proposed a $1.55 million civil penalty against FedEx (FED) "for allegedly failing to revise its Continuous Airworthiness Maintenance Program in accordance with (FAA) regulations," the (FAA) stated. The cargo operator allegedly failed to ensure that it "used approved standards, inspections and time limitations for 14 cargo Unit Load Devices used on the company's airplanes beginning in early 2008," the (FAA) said. "The civil penalty addresses 124 flights from March 20 to April 17, 2008." (FAA) Administrator, Randy Babbitt said, "When it comes to maintenance, it's unacceptable for any air carrier not to meet the (FAA)'s standards." FedEx (FED) has 30 days to respond.

June 2010: FedEx (FED) reported net income for its fiscal year ended May 31 of +$1.18 billion, significantly improved over a +$98 million profit in the prior year, despite a -2% dip in revenue to $34.73 billion.

Total Fiscal Year (FY) 2009 to 2010 expenses lowered -6% to $32.74 billion, helped in part by a -18% decrease in fuel costs to $3.1 billion. Operating income was +$2 billion, well more than double the +$747 million in the prior year.

(FED) noted that the fiscal year, which began in the midst of the global recession, ended on a strong note, with fourth-quarter revenue rising +20% year-over-year to $9.43 billion. Fourth-quarter net income of +$419 million was reversed from a -$876 million loss in the year-ago period.

The FedEx Express (FED) airline segment posted a +23% increase in revenue for the fiscal fourth quarter to $5.88 billion. For full (FY) 2009 - 2010, the Express segment's revenue dropped -4% to $21.56 billion but its operating income jumped +42% to +$1.13 billion.

Chairman, President & CEO, Frederick Smith said that "sequential growth in package volume and our ability to leverage our unique global networks to take advantage of a recovering economy" boosted results as the year went on. Total daily packages carried by the Express unit rose +3% for the fiscal year. "We expect continued improvement in both revenue and earnings" in (FY) 2010 - 2011, Executive VP & CFO, Alan Graf said. "Resumed growth in industrial production and global trade is increasing demand for our transportation services." But he warned that "growth in earnings [will be] constrained by significant increases in fixed pension and volume-related aircraft maintenance expenses, along with higher anticipated health care costs."

(IATA) named FedEx Express (FED) President & CEO, David Bronczek Chairman of its board of governors and selected (KLM) CEO, Peter Hartman to follow as Chairman, when Bronczek's term ends in June 2011. Bronczek succeeds Cathay Pacific Airways (CAT) CEO, Tony Tyler, who served as Chairman for the past year. "Along with improving safety and effectively managing the industry's settlement systems, (IATA) must play a role in laying the foundation for sustainable profitability," Bronczek said. "And we need to continue to lead the industry on climate change. These are my priorities. I will also bring a cargo perspective to my duties as Chairman. We must focus our efforts on achieving the cost savings that (IATA) e-freight can deliver to the cargo value chain as part of Simplifying the Business." Bronczek has been FedEx Express (FED) CEO since 2000.

August 2010: 2 777-FS2s (37737, N856FD "Shae;" 37728, N857FD "Bradon"), deliveries.

September 2010: FedEx (FED) said it will raise USA domestic and USA export shipping rates on its air-reliant Express services by a net average +3.9% from January 3, 2011. It said the "full average rate increase" actually will be +5.9%, but that figure is "partially offset by adjusting the fuel price threshold at which the fuel surcharge begins," the company explained, noting that its fuel surcharge will be lowered by -2% points. FedEx (FED) said in a statement that the "pricing adjustment will allow for key investments."

October 2010: FedEx (FED) opened a new hub October 27 in Cologne, which will be used for Central and Eastern Europe operations. It also closed down its Frankfurt hub, owing to a possible ban of night flights.

Defunct ATA Airlines (AAT) won a $66 million USA federal court judgment against FedEx (FED), blamed by (AAT) in 2008 for pushing it out of business. (AAT) ceased operations more than 2.5 years ago after a USA military transport contract managed by FedEx (FED) was terminated.

(AAT), which launched operations in 1973, had a nearly two-decade working arrangement with FedEx (FED) that gave it a share of airlift contracted by the Department of Defense Air Mobility Command to provide transport of military personnel and their families. (AAT) claimed in its lawsuit, filed after its demise in 2008, that (FED)'s notification of the contract termination was "abrupt and unexpected" and left (AAT) with no choice but to shut down. A federal jury sided with that version of events, ordering (FED) to pay damages to (AAT)'s creditors for lost profits in 2008 and 2009.

"The jury found that we had a three-year contract and deserved an opportunity to perform on that contract," (AAT) attorney, John Hoover told "The Indianapolis Star." Hoover added that the legal victory would not revive (AAT), with most of the money likely going to creditors including JP Morgan Chase. (FED) said it is exploring its options. It could appeal the ruling.

British Airways (BAB) has retired all its 757 airplanes. (BAB)’s last three 757s will be converted to freighters and operated by FedEx Express (FED).

November 2010: FedEx Express (FED), the delivery giant's airline unit, said it has entered into an agreement to acquire the logistics, distribution and express businesses of (AFL) and its affiliate, Unifreight India. "This acquisition will give FedEx (FED) a more robust domestic ground network and added capabilities in India," the company said in a statement. It said the transaction will likely close by the end of February.

"A privately held company, the (AFL) business offerings include a comprehensive range of distribution and logistics services through a well-established network across India," FedEx (FED) said. Specifically, (FED) will acquire (AFL) Logistics and Distribution, which provides supply chain management, warehousing and "a ground distribution network that provides day-definite ground transportation for small packages and heavyweight shipments through more than >200 daily scheduled routes," FedEx (FED) noted. Also purchased will be (AFL) "WiZ Express," which offers express service to "more than >5,000 ZIP codes across 144 cities in India," it stated.

"The acquisition supports our long-term strategy to grow our international business and better serve our customers seeking to expand or enter the Indian market," FedEx Express (FED) COO, Michael Ducker said. FedEx (FED) has in recent years expanded its reach by acquiring entities around the world, particularly in developing countries. Four years ago, it bought its Indian service provider, Prakash Air Freight, for $30 million in cash.

FedEx Express (FED) has joined with Cologne Bonn Airport to inaugurate the FedEx Central and Eastern Europe hub, the second (FED) hub to be solar-powered and the fifth solar facility in operation within the FedEx Corporation. The Cologne facility is one of the most modern (FED) hubs and has a fully automated sorting system that can process up to 18,000 packages and documents per hour. The roof features the company’s largest solar power installation and represents one of the biggest rooftop solar systems in North Rhine-Westphalia with an area of 16,000 sq m, producing about 800,000 kWh per year. Including the Cologne hub, the five on-line (FED) solar facilities will reduce annual CO2 emissions by a projected -3,918 tonnes, the equivalent of more than >-440,000 gallons of gasoline saved or more than >-100,000 tree seedlings growing for 10 years.

(FED) recently added all-electric delivery vehicles in Paris and Los Angeles, building on its existing all-electric fleet in London. Integration of such vehicles is part of its pledge to improve the fuel efficiency of its vehicle fleet by 20% through its "Reduce, Replace and Revolutionize" strategy and to reduce CO2 emissions from its airplane fleet by -20% per available ton-mile by 2020.

January 2011: 777-3 (22909, N619DL), bought from Vx Capital. 1 757-236 (25806, N950FD), delivery. 4 MD-11Fs (48444; 48446; 48485; 48486) bought from Transmile Air (TML). 48444; re-registered (N644FE); and 48446, re-registered (N645FE).

February 2011: Though the Japanese government has taken steps toward aviation market liberalization over the past year, evidenced most prominently by the new USA/Japan "open skies" air services accord, Tokyo will need to go further if Japan's airports are to remain competitive in attracting international air cargo traffic, several observers of the Japanese air transport market said. "I think the Japanese government has changed its thinking" and wants liberalization regarding air transport including cargo, Hirotaka Yamauchi, a professor from Hitotsubashi University's Graduate School of Commerce & Management, told the Japan International Transport Institute (JITI) Air Cargo Transportation Seminar in Washington. "The necessary conditions for liberalization are now being set. More and more Japanese manufacturers are manufacturing their goods in places other than Japan, such as China and southeast Asia, so there is no doubt there will be more [air cargo] demand" to/from Japan.

Yamauchi noted that Tokyo Narita's cargo growth has "stagnated," and others warned that the few restrictions that do exist in the new open skies pact relate to cargo and could hinder airfreight growth at Japanese airports. According to former USA State Department Deputy Assistant Secretary for Transportation Affairs, John Byerly, the lead USA negotiator when the "open skies" agreement was reached, the pact contains two stipulations concerning cargo. First, Japan refused to allow seventh freedom cargo rights to be included in the deal, meaning that USA carriers such as FedEx (FED) and (UPS) are not allowed to operate direct cargo flights between Japan and other countries. Second, while international scheduled passenger flights are now operating at Tokyo Haneda (HND), the Japan - USA accord disallows HND slots being used for all-cargo services.

"Does Japan want its airports to become cargo hubs?" Byerly asked, noting that "there are some who say Japan missed its opportunity with [its] previously restrictive policies on air cargo. They feel most cargo operators have chosen to fly over Japan. I, for one, am not so sure that's the case." Given Japan's location and large high-tech sector, it can still attract cargo traffic, he asserted, adding that revisiting seventh freedom rights and opening up more all-cargo slots will be keys. Even post-USA/Japan open skies, "the Japanese government still places tight restrictions on slots at Narita and [cargo] operations at Haneda," FedEx Express (FED) Senior Counsel, Bailey Leopard told the (JITI) conference. He added that seventh freedom rights are "enablers of cargo hubs" and will be critical if Japan is "to remain competitive" in the express cargo industry.

Nevertheless, Byerly said the open skies accord will lead to "impressive" new access to the Japanese market for USA cargo carriers. Before the new deal, there was essentially a "caste system" in which non-incumbent carriers encountered "a straight-jacket of restrictions" in operating cargo flights to Japan, he commented.

FedEx Corporation said that its FedEx Express (FED) business unit completed the previously-announced acquisition of the logistics, distribution and express businesses of (AFL) and its affiliate Unifreight India. Purchase price was not disclosed.

"The addition of the (AFL) and (UFL) businesses to the FedEx Express (FED) network will provide customers with more comprehensive international and India domestic service options, such as air express, domestic ground and value-added services," said FedEx Express COO, Michael Drucker.

March 2011: FedEx (FED) reported net income of +$231 million for its fiscal third quarter ended February 28, down -3% from a +$239 million profit in the prior-year period, but it posted a +11% year-over-year rise in quarterly revenue to $9.66 billion and gave positive guidance for the current quarter and beyond.

Executive VP & CFO, Alan Graf said, "Successful yield management initiatives helped drive significant revenue growth across our transportation segments in the third quarter, although results were dampened by severe winter storms and higher-than-expected fuel costs. More broadly, we expect continued positive yield trends to improve revenues and margins in the [current] quarter and in fiscal 2012 [starting June 1]."

(FED) predicted earnings per share of $1.66 to $1.83 for the current quarter ending May 31, which would mark at least a +24.8% gain over the May 2010 quarter. "We expect strong demand for our services to boost our financial performance in our fourth quarter," Chairman, President & CEO, Frederick Smith said.

The FedEx Express (FED) airline unit earned fiscal third-quarter operating income of +$178 million, down -33% from a +$265 million operating profit in the prior-year quarter. The unit's revenue rose +11% to $6.05 billion, while expenses grew +13% to $5.87 billion, including a +29% increase in fuel costs to $898 million. Composite yield for Express packages heightened +6% to $21.01 on a +3% rise in total average daily packages to 3.7 million.

Fiscal third-quarter operating expenses for the whole company heightened +12% to $9.27 billion and operating income was $393 million, down -6% from a $416 million operating profit in the year-ago period.

Smith said it was unknown what impact the earthquake, tsunami and nuclear crisis in Japan would have, but said it was unlikely to change FedEx (FED)'s strong near-term prospects. "I don't think … with a company the size of (FED), at about $10 billion a quarter, that the net effect of Japan is going to be significant," he said.

(FED) launched four-times-weekly, 777F Memphis - Seoul service.

June 2011: FedEx (FED) posted a strong financial performance for its fiscal fourth quarter ended May 31. Net income jumped +33% to +$558 million from a +$419 million profit in the prior-year period and quarterly revenue rose +12% year-over-year to $10.55 billion.

With the strong finish, (FED) reported net income of +$1.45 billion for Fiscal Year (FY) 2010 - 2011 ended May 31, up +23% from a (FY) 2009 - 2010 profit of +$1.18 billion. (FED), regarded as a strong economic indicator, provided very positive guidance for (FY) 2011 - 2012.

"During [(FY) 2010 - 2011], an improved economy, strong customer demand and decisive actions to grow our business, led to increased volumes and yields across all transportation segments," said (FED) Chairman, President & CEO, Frederick Smith. "With this positive momentum, moderate economic growth and subsiding cost headwinds, (FED) is well positioned to deliver strong earnings growth in fiscal 2012."

The FedEx Express airline unit earned operating income of +$429 million in the fiscal fourth quarter, up +4% from a +$413 million operating profit in the prior-year quarter. The unit's revenue rose +13% to $6.63 billion; its operating margin, though, was 6.5%, down from 7% in the year-ago quarter. (FED) said International Priority average daily package volume increased +6%, led by exports from Asia. Operating income improvements at the unit were driven by strong yield growth, particularly in USA domestic package services, and by volume growth in (IP) package and freight services.

(FED) said full-year (FY) 2010 - 2011 revenue grew +13% to $39.3 billion, while operating income rose +19% to $2.38 billion from $2 billion last year.

(FED) said its positive outlook is based on fuel prices remaining relatively stable and continued moderate growth in the global economy. (FED) forecast capital spending in (FY) 2011 - 2012 at $4.2 billion, up from $3.4 billion in the prior fiscal year. The expenditures include the delivery of airplanes as well as progress payments toward future airplane deliveries and other investments in facilities, vehicles and information technology (IT). "Even with higher planned capital spending in [(FY) 2011 - 2012], margins, cash flows and returns are expected to improve year-over-year," said Executive VP & CFO, Alan Graf.

FedEx (FED) has officially retired Boeing 727 planes from its fleet of air freighters, conducting the last domestic flight with a 727.

July 2011: The USA (FAA) proposed a $689,800 civil penalty against FedEx Corporation for allegedly violating USA hazardous materials regulations. The (FAA) alleged that in 89 instances from June 13 - September 4, 2009, "FedEx (FED) failed to provide pilots-in-command (FC) with complete, accurate information on the nature, quantity and weight of hazardous materials loaded on their airplanes. Pilots-in-command (FC) must be given this information under hazardous materials regulations."

The (FAA) also alleged that (FED) "accepted four shipments of hazardous materials for transportation by air when those materials were not accurately described and certified in the accompanying shipper's documents. The shipments were accepted between June 18 and August 26, 2009." (FAA) Administrator, Randy Babbitt said, "Pilots (FC) must know they are carrying dangerous goods so they can take all necessary safety precautions." (FED) has 30 days to respond to the (FAA).

August 2011: FedEx (FED) is moving closer to achieving its 2020 global citizenship goals with significant support from its 290,000 staff combined with latest technology strategic investments.

According to FedEx Asia Pacific, David Cunningham, the FedEx (FED) 2010 Global Citizenship Update highlights how collaboration and investments can both connect and engage staff, while creating economic opportunity. “In Asia, we connect people everywhere with opportunities and innovation. We consciously focus on fuel efficiency, provide emergency relief when disasters strike, and engage our people to serve customers, stakeholders and the communities in which they live,” Cunningham said.

“Our latest Global Citizenship Report gives a very clear first-hand view of how our employees are committed to delivering a better world through their own personal stories.” One example is fuel efficiency at the largest FedEx (FED) station in Japan, which has improved by -5% by employing a simple program called Eco-Driving that reduces environmental impact through changing daily driving habits.

Started by the local leadership in Japan, (Fed) couriers are taught specific eco-driving skills in both classroom settings and practical sessions, Cunningham said. To reinforce the concepts, reminders in the form of key chains and stickers in the vehicles are distributed. There are plans to roll out this program on a larger scale.

(FED) also employs a complex technology called Route Optimization and Decision Support (ROADS) to plan upfront, adapt routes and even advise package placement on the vehicle, helping staff make more efficient decisions under the pressure of deadlines.

(FED) is also moving to more efficient vehicles and airplanes. By the end of June, (FED) increased its all-electric and hybrid-electric vehicle fleet by +20% to 410 vehicles in service across the globe, and is studying the all-electric fleet for further expansion.

In the air, (FED) recently added six more 777F airplanes to its fleet, increasing the fleet to 12. Compared to the MD-11Fs they are replacing, the 777F flies further, while carrying +15,500lbs more cargo and burns -18% less fuel. (FED) plans to have 45 777Fs in service by 2020.

(FED) has set a goal of reducing airplane emissions by -20% by 2020, while increasing vehicle efficiency by +20%.

September 2011: The FedEx Corporation (FED) reported a net profit of +$464 million for its fiscal first quarter ended August 31, up +22% from net income of +$380 million in the prior-year period. Despite the profit rise, (FED) lowered per share earnings guidance for its full fiscal year ended May 31 from $6.35 - $6.85 to $6.25 - $6.75, reflecting slower-than-expected global economic growth.

"The USA and global economy grew at a slower rate than we anticipated during the quarter," Executive VP & CFO, Alan Graf said. He added that a "rapid decline in demand" for its air-reliant FedEx Express (FED) unit, "particularly from Asia," led to the earnings downgrade. Also, the company said FedEx Express shipping rates would rise by a net average of +3.9% for USA domestic, USA export and USA import services, effective January 2, 2012.

(FED)'s companywide revenue grew +11% year-over-year in the fiscal first quarter to $10.52 billion while expenses increased +11% to $9.78 billion, producing an operating profit of +$737 million, up +17% from $628 million in the year-ago period. (FED) saw its operating income dip -19% year-over-year to $288 million as revenue increased +12% to $6.59 billion but expenses jumped +13% to $6.3 billion. The unit's fuel costs leaped +43% to $1.08 billion.

(FED) "operating income and margin [4.4% compared to 6% in the August 2010 quarter] decreased as package volume declines accelerated during the quarter due to slowing global economic growth," the company said. "The package volume declines were more pronounced in certain premium services."

October 2011: SEE ATTACHED "AIRLINER WORLD" ARTICLE OF FEDEX (FED) - - "FED-2011-10-A/B/C/D/E/F/G/H/I/J/K."

December 2011: FedEx (FED) revealed it has placed a firm order for 27 767-300F freighters valued at $4.74 billion at list prices, but also has deferred delivery of 11 777Fs. The disclosures were made as (FED) reported a +76% year-over-year lift in net income for its fiscal second quarter ended November 30 to +$497 million on a +10% rise in revenue to $10.59 billion.

(FED) will take delivery of three 767-300Fs in its fiscal year starting June 1, 2013, and receive six per year over the following four years. The airplanes will replace (FED)'s aging MD-10Fs.

"The 767s will provide similar capacity as the MD-10s, with improved reliability, an approximate +30% increase in fuel efficiency and a minimum of a -20% reduction in unit operating costs," (FED) said.

It selected (GE) Aviation (GEC)'s (CF6-80C2) engines to power the 27 767-300Fs. It also signed a multiyear "OnPoint" maintenance, repair and overhaul (MRO) agreement with (GEC).

Regarding the 777Fs, (FED) exercised two options but also has delayed the delivery of 11. Two will be deferred that had been scheduled for delivery in the fiscal year starting June 1, 2012, five from the next fiscal year, and one per year in the following four years. (FED) said the deferrals were necessary "to better balance air network capacity to demand." It did not say when the deferred airplanes will be delivered.

As a result of the deferrals, (FED) will place four 777Fs into service in the fiscal year starting June 1, 2012, and two in the following fiscal year. It has 17 777Fs in service.

Executive VP & CFO, Alan Graf said the 777F deferrals are a continuation of (FED)'s recent efforts "to adjust its network, particularly in Asia, as recent inventory destocking trends have impacted demand." He said the delayed deliveries will enable (FED) "to make appropriately timed international 777 capacity additions over the next decade."

777-FS2 (38707, N892FD FedEx Panda Express" - - SEE PHOTO - - "FED-2011-12 - PANDA EXPRESS") delivered two giant pandas from China to Edinburgh for the Edinburgh Zoo in Scotland, (UK).

FedEx (FED) hired 6 Flight Crew (FC) pilots in November and plans to hire approximately 36 between December and January. Recruitment will continue hiring for the foreseeable future with potentially 500 new pilots (FC) in the next two years. The application window is currently closed for new applicants. FedEx attended the FltOps.com job fair in Las Vegas in April. See Flt.Ops.com and FAPA.aero.

January 2012: The 50th 757-200SF (N940FD - - SEE PHOTO - - "FED-757-200SF - 2012-01") converted for Federal Express (FED) was completed on January 30th. It was built originally for Air Europe (ARE) and its conversion was by ST Aerospace, Singapore, Paya Lebar.

April 2012: FedEx (FED) signed an agreement to buy Polish courier company Opek, part of an attempt to at least partially counter the blockbuster United Parcel Service (UPS) - TNT Express (TNB) merger.

(UPS)’s proposed $6.8 billion purchase of (TNB) is largely viewed as relegating (FED) to second-tier status in Europe, where (FED)’s presence is well below market leader (DHL) and soon to be significantly behind (UPS)/(TNB), which likely will have the scale to compete head-to-head against (DHL) in Europe. But (FED) said buying Opek marked its “latest step in its strategy for growth in Europe.”

(FED) said “This acquisition will give [FED] access to a nationwide domestic ground network [in Poland] with an estimated $70 million in annual revenue and 12.5 million shipments annually.”

(FED) said the transaction will “most likely” close this summer. “In recent years, we have made significant investments throughout Europe, greatly expanding our network coverage and improving service to customers,” (FED) President & (CEO), Frederick Smith said. Opek, which employs about 1,200 workers, was founded in 1994.

May 2012: FedEx (FED) said it has signed an agreement to acquire French express delivery company, (TATEX).

(FED) has been trying to shore up its position in Europe in the aftermath of rival United Parcel Service (UPS)’s decision to acquire Amsterdam-based, TNT Express (TNB). “The acquisition represents the latest (FED) investment in delivering sustainable growth in Europe.”

Privately held (TATEX), founded in 1976, employs more than >1,000 workers. It is focused on business-to-business expedited delivery in France. It has 35 shipping centers including six regional hubs.

“The acquisition will give (FED) access to a nationwide domestic ground network, which carries 19 million shipments and produces approximately €150 million/$194.5 million in revenue annually. This latest development demonstrates the company’s continued focus on European expansion through smart, strategic investments, and organic growth.”

(FED) signed an agreement last month to buy Polish courier company Opek.

June 2012: FedEx (FED) is setting up a new hub facility at Osaka Kansai International (KIX) that is scheduled to open in 2014 and will serve as a new hub for express cargo services in the North of Asia.

(FED) said it has decided to permanently ground 18 A310-200F freighters and six MD-10Fs.

“The majority of these airplanes are currently parked and not in revenue service,” it said. As a result of the retirements, (FED) incurred a noncash impairment charge of $134 million in its fiscal fourth quarter ended May 31.

“The decision to permanently retire these airplanes will better align the USA domestic air network capacity of (FED) to match current and anticipated shipment volumes.” (FED) also retired five 727-200Fs in the quarter ended May 31. It plans to retire 21 additional 727Fs, which it noted will be “fully depreciated,” in the fiscal year started June 1.

As of February 29, (FED) operated a fleet of 688 total airplanes, including 397 jets.

Additionally, the company’s board of directors has declared a quarterly cash dividend of 14 cents per share of (FED) common stock, payable July 2 to stockholders of record at the close of business June 18.

July 2012: FedEx Express (FED), a subsidiary of FedEx Corporation, announced it will purchase an additional 19 Boeing 767-300 airplanes as part of its plan to improve the efficiency and technology of its fleet.

The new airplane includes the conversion of four 777F orders (two that were to be delivered in fiscal 2016 and two in fiscal 2017) to 767s.

The 19 767s, which will be delivered from fiscal 2015 to 2019, will replace retiring MD-10 and A310-200 airplanes. “The impact to capital spending in fiscal 2013 and fiscal 2014 is immaterial, and estimated fiscal 2013 capital spending remains at $3.9 billion,” FedEx (FED) said. “The 767s are substantially more fuel efficient and reliable than the airplanes they will replace.”

(FED) President & (CEO), David Bronczek said the company is “positioning itself for more profitable growth by modernizing its airplane fleet and better aligning its USA domestic air network to match current and anticipated shipment volumes.”

FedEx (FED) has completed the purchase of Brazilian logistics company Rapidão Cometa (RC), another in a string of buys the Memphis-based express operator has made in recent months to buttress its global network. An acquisition price was not released; Recife-based (RC) generated more than >$500 million in revenue last year.

“Brazil is the sixth-largest economy in the world and its rapidly increasing middle class presents tremendous opportunity,” FedEx Express (FED) (COO) & President Federal Express International, Michael Ducker said. “[T]his acquisition is a testament to our commitment to expand our global footprint in the markets that most need access to the global marketplace.”

The latest international purchase gives FedEx (FED) “direct access to nationwide domestic services within Brazil and a domestic ground network of 45 branches and approximately 145 distribution points, 770 vehicles and trailers and 9,000 team members across the country,” the company said. “Customers of Rapidão Cometa will, in turn, gain direct access to FedEx (FED) global services and the FedEx network, connecting them to more than >220 countries and territories around the world.”

(RC) President Américo, Pereira Filho has been named FedEx Express (FED) VP Latin America & The Caribbean, and President of FedEx Express Brazil. “To promote a seamless transition, the two companies will go through a complete integration process that is expected to last between 18 and 24 months,” FedEx (FED) said.

August 2012: FedEx (FED) is looking for a -30% reduction of its airplane carbon emissions by the year 2020, according to its Global Citizenship Report just released.

(FED) originally announced in 2008 its goal to reduce airplane carbon emissions by -20% by 2020. (FED) said they are using Fiscal Year (FY) 2005 as their base year, and have already reduced their carbon emissions by -13.8% since (FY) 2005.

(FED) said their fleet modernization program (upgrading from 727s and MD-11s to 777s) has primarily lead to the reduction in carbon emissions and an increase in fuel efficiency. (FED) said it will introduce the 767 in 2013, and will completely replace its (FED) fleet of 727s with 757s by 2015.

“(FED) has also reaffirmed its commitment to sourcing at least 30% of its jet fuel from alternative fuels by the year 2030.”

The (FAA) is proposing a $681,200 civil penalty against Federal Express (FED) for allegedly violating USA Department of Transportation hazardous materials regulations.

The (FAA) alleges that “between August 2 and August 12, 2010, (FED) employees in numerous locations around the country improperly accepted several dozen shipments containing hazardous materials for transportation by air.”

The (FAA) also alleges that “in 19 instances on August 12, 2010, (FED) failed to provide pilots (FC) of flights to and from Los Angeles with the required ‘accurate and legible written information’ about shipments of hazardous materials it accepted for transportation by air,” the (FAA) said.

Additionally, the (FAA) alleges (FED) “failed to document hazardous materials training and testing for three individuals who were among those accepting the shipments for the company.”

A (FED) spokesman said: “FedEx Express safely and reliably transports millions of items classified as dangerous goods every year. While we realize that limited documentation and shipping label errors did occur, at no time was the safety of the public or our team members at risk. Our goal is 100% compliance and we have put processes in place to ensure these errors are not repeated.”

(FED) has 30 days to respond to the (FAA).

September 2012: FedEx (FED) reported a +$459 million net profit for its fiscal first quarter ended August 31, down -1% from +$464 million in net income in the year-ago period. The disappointing performance led the express delivery operator to downgrade its full fiscal-year earnings forecast.

(FED) previously projected full fiscal-year net income of $6.90 to $7.40 per diluted share; it now foresees per share profits to be $6.20 to $6.60. Its capital spending forecast for the year remains unchanged at $3.9 billion.

“Earnings for the first quarter were below our expectations as weak global economic conditions dampened revenue growth, drove a shift by our customers to our deferred services and outpaced our near-term ability to reduce [air-intensive] FedEx Express operating costs to match demand levels,” (FED) Executive VP & (CFO), Alan Graf said.

(FED) said that the Express unit’s “operating income and margin were lower as declining USA domestic package volumes, the demand shift toward lower-yielding international services and increased depreciation and employee benefits expenses more than offset cost-containment activities, such as reductions in flight hours and labor hours.” (FED)’s quarterly operating income declined -28% year-over-year to +$207 million.

(FED)’s company wide fiscal first-quarter revenue rose +3% compared to the year-ago period to $10.79 billion while expenses increased +3% to $10.05 billion, producing an operating profit of +$742 million, up +1% year-over-year.

FedEx Express (FED) has increased its emissions reduction goal by 50%. (FED) said in 2008 it would reduce carbon dioxide emissions from its airplane fleet by -20% (compared to 2005 levels) by 2020, and has now "nearly achieved" the target, it announced. Its goal is now set at a 30% reduction in global airplane emissions by 2020. By the end of fiscal year 2011 it had reduced airplane emissions by -13.8%.

“(FED) is dedicated to providing sustainable solutions for our customers,” said Mitch Jackson, Staff VP Environmental Affairs & Sustainability at (FED). “This year’s Global Citizenship Report showcases our tireless efforts to maximize our efficiency while advancing our commitment to connect the world in responsible and resourceful ways.” (FED) is Air Transport World (ATW)’s "2012 Silver Eco-Airline of the Year."

October 2012: FedEx (FED) said it is seeking $1.7 billion in annual profitability improvement by 2016 and indicated that cuts and changes to its air-intensive FedEx Express (FED) unit will be central to achieving the earnings increase.

(FED)’s net profit for its 2012 fiscal first quarter ended August 31 was down -1% year-over-year to +$459 million, a rare earnings decrease for the company. Net income for its 2011 fiscal year ended May 31 was $2.03 billion, suggesting the company is targeting around $3.7 billion in net income for its 2015 fiscal year ending May 31, 2016.

Chairman, President & (CEO), Frederick Smith said, “We are revamping the Express cost structure through a combination of cost reductions, efficiency improvements and service repositioning.” Improved information technology (IT) will also help increase cost-efficiency, he added. “Our overall strategy is closely tied to effective yield management,” he said in a speech to (FED) investors. “The key is striking the right balance between volume growth and yield improvements. With slow economic growth, however, the cost reduction programs are also essential to achieve our financial goals.” He expressed confidence (FED) could meet its profit targets “even in low-growth environments for global trade and within the major economies.”

Smith said (FED) would reduce its workforce “by several thousand people” via a voluntary buyout program.

FedEx (FED) plans to invest more than >$100 million to establish a hub at Shanghai Pudong International Airport (PVG). (FED) is the third international air express operator to establish a hub at (PVG). (UPS) did so in December 2008 and (DHL) has established its North Asia hub at (PVG).

(FED)’s hub is expected to begin operations in 2017 on a 134,000 square meter site with the capacity to handle up to 36,000 parcels and documents per hour. The facility’s annual sort capability is expected to reach more than >90 million parcels and documents.

(FED) noted that it will gradually expand its flight frequencies and cargo turnover at (PVG) to meet growing market demands. Today, it operates 68 weekly flights at (PVG).

“Shanghai is one of the fastest-growing economies in China with foreign trade playing a significant role. The new (FED) hub will allow our customers in Shanghai and East China to benefit from these increasing trade flows,” (FED) Asia Pacific President, David Cunningham said.

(FED) had just recently announced Osaka Kansai International (KIX) as one of its other new hubs in Asia.

(FED) announced a $1.7 billion profitability improvement plan earlier this month.

ST Aerospace won contracts worth S$590 million in the third quarter of 2012 and completed airframe maintenance and modification work for 156 airplanes. During the quarter, it redelivered three converted 757-200Fs to FedEx Express (FED).

Air Contractors (HCA) has taken delivery of its first 737-400F (24440, EI-STB). It already operates a single 737-300 on passenger charter services. Its cargo fleet includes nine A300B4(F)/C4/F4s on behalf of DHL Express subsidiary, European Air Transport Leipzig (EPT) and ATR42-300F as well as ATR72-200F freighters on behalf of FedEx (FED) and Mistral Air (MSA).

December 2012: FedEx (FED) reported net income of +$438 million for its fiscal second quarter ended November 30, down -12% from a net profit of +$497 million in the prior-year period.

(FED) also announced an order for four 767-300F freighters for its FedEx Express unit. It said the airplanes, which bring its total 767-300Fs on order to 50, will help modernize its fleet by replacing aging MD-10Fs. (FED) Executive VP Air Operations, James Parker said, "These new 767s will provide significantly improved reliability and are substantially more fuel-efficient than the airplanes they will replace."

(FED) said softness in the air-reliant Express segment contributed to the earnings decline as shippers continue to opt for slower, less expensive options. (FED) Chairman, President & (CEO), Frederick Smith noted that “persistent weakness in the global economy and increased demand for lower-yielding international services limited profits at (FED).” The delivery giant said it remains committed to the profitability improvement initiative, primarily focused on cuts and changes to the Express unit, announced earlier this year.

The Express segment saw fiscal second-quarter operating income fall -33% year-over-year to $230 million. Overall company revenue rose +5% to $11.12 billion, while expenses increased +6% to $10.39 billion, producing operating income of +$718 million, down -8%.

The Express unit reported that yield per package dipped -5% year-over-year to $21.04 for the three months ended November 30, with per package yield on its fastest “international priority” service falling -5% to $59.91.

March 2013: FedEx (FED) plans to cut capacity on flights to/from Asia in response to declining profits. (FED) reported a net profit of +$361 million for its fiscal third quarter ended February 28, down -31% from +$521 million in net income in the year-ago period. “The third quarter was very challenging due to continued weakness in international air freight markets, pressure on yields due to industry overcapacity and customers selecting less expensive and slower-transit services,” Chairman, President & (CEO), Frederick Smith said.

FedEx (FED) has seen earnings decline year-over-year in each of the first three quarters of its fiscal year started June 1, 2012.

From April 1, the company’s FedEx Express airline unit “will decrease capacity to and from Asia and will aggressively manage traffic flows to place low yielding traffic in lower-cost networks,” Smith said, adding that the capacity cut “may allow FedEx Express to retire more of its older, less-efficient airplanes.”

(FED)’s fiscal third-quarter revenue rose +4% year-over-year to $10.95 billion, while expenses increased +6% to $10.36 billion, producing operating income of +$589 million, down -28%. The FedEx Express segment’s fiscal third-quarter operating profit of +$118 million was down -66% from operating income of +$349 million in the prior-year period.

FedEx Express ((IATA) Code: FX, based at Memphis International airport (MEM)) (FED) has agreed with United Airlines (UAL) to acquire 14 of (UAL) 757-200s that will be converted to freighters for the logistics giant between 2013 and 2015. (FED) also has the option to acquire another 16 airplanes from (UAL) at a later stage. (UAL) currently operates 132 757-200s, FedEx (FED) already has 79 of the airplanes although 15 are still undergoing or awaiting freighter conversion.

April 2013: SEE ATTACHED "AIRWAYS" MAGAZINE UPDATE - - "FED-2013-04 - UPDATE-A/B."

FedEx Corporation announced that its FedEx Express subsidiary has entered into a new express air transportation contract with the United States Postal Service (USPS). The current contract ends in September; the new contract will begin in October. Under this seven-year agreement, valued at approximately $10.5 billion, FedEx Express will provide airport-to-airport transportation of (USPS) express mail and priority mail within the USA.

FedEx Express President & (CEO), David Bronczek said the contract “provides enhanced value and additional flexibility allowing the (USPS) to respond to possible changes.”

June 2013: FedEx Corporation said it has permanently retired or will accelerate the retirement of 86 airplanes and 308 related engines as it continues to modernize its airplane fleet and improve its global network.

FedEx Express (FED) will permanently retire two A310-200Fs, three A310-300Fs and five MD-10-10Fs. It will also accelerate by several years the retirement of 47 MD-10-10Fs, 13 MD-10-30Fs and 16 A310-200Fs. “We are modernizing our airplane fleet by retiring older, less-efficient, and less-reliable airplanes and replacing them with modern airplanes to build a fleet with higher reliability and better cost efficiency,” (FED) President & (CEO), David Bronczek said. “With the planned acquisition of new airplanes and projected slower economic growth than previously forecast, (FED) is lowering maintenance costs by aggressively parking and retiring airplanes.”

According to a company statement, the impact of accelerating the retirement of airplanes will result in additional year-over-year depreciation expense of $74 million in Fiscal Year (FY) 2014.

FedEx (FED) has officially retired Boeing 727 planes from its fleet of air freighters, conducting the last domestic flight with a 727 (N481FE) flying from Indianapolis to FedEx (FED)'s main facility in Memphis. Built originally for Braniff, this 1978 727-200F model was delivered in May of that year, which was only 4 months later than FedEx (FED)'s acquisition of its first 727-100 (likewise a former passenger airplane) in January 1978.

The 727 airplane has not disappeared entirely, yet. According to "The Airline Monitor," in its annual airliner forecast contained in the June 2013 issue, 462 727s (79 727-100s, and 383 727-200s) remained in the global fleet as of December 31, 2012, of 1,831 total delivered, of which 571 were 727-100s and 1,260 were 727-200s. The majority of those still present and accounted for were, not surprisingly, freighters, including 33 727-100Fs and 228 727-200Fs.

July 2013: FedEx Corporation has completed the first stage of its acquisition of southern African service provider, Supaswift’s business operations in Malawi, Mozambique, South Africa, Swaziland, and Zambia. FedEx Express (FED) will take over the businesses once required regulatory approvals and closing conditions have been met. Additional negotiations are underway to acquire Supaswift’s business in Botswana and Zambia.

Supaswift began operations in South Africa in 1990, and in 2005 merged with MyExpress, which had been a FedEx Express international service provider since 1991. The acquisition further expands FedEx (FED)’s global reach, following 2012’s purchase of Brazilian logistics company Rapidão Cometa (RC), French express delivery company TATEX and Polish courier company Opek.

727-227F (21492, N489FE), donated to Minnesota Association of Women in Aviation.

August 2013: According to FAPA.aero, FedEx (FED) has no further flight crew (FC) hiring through 2013. When (FC) hiring does resume no simulator will be used in the selection process.

September 2013: FedEx Corporation reported a net profit of +$489 million for its fiscal first quarter ended August 31, up +7% over net earnings of +$459 million in the prior-year period.

FedEx Express (FED) received its first 767-300F Freighter at its Memphis, Tennesee, facility. This first 767F is part of a $742 million order placed by (FED) for four 767s in December 2012, as (FED) looks to replace its aging fleet of MD-10Fs.

According to Boeing (TBC), the airplane is based on the 767-300ER passenger airplane, and has intercontinental range with the ability to carry up to 58 tons of cargo. "The 767 is approximately 30% more fuel efficient and has unit operating costs that are more than >20% lower than the airplanes they will replace. The net effect is an airplane that is more affordable to operate and has lower carbon emissions because of better fuel efficiency," said James Parker, Executive VP Air Operations at FedEx Express (FED).

January 2014: FedEx (FED), the world's largest cargo airline, will accelerate development of logistics services for sensitive medical and pharmaceutical products as it races to catch up with other established rivals in the China market.

Richard Smith, Managing Director Life Sciences & Specialty Services at FedEx Express (FED), said the company is in the process of expanding its facility for the health-related products at its Shanghai international hub.

The new facility is designed to meet China's specific demands for storage of medical devices, biological materials and pharmaceuticals, and to meet the distribution needs of pharmaceutical companies. "Emerging economies, with their growing middle classes coupled with an aging population, are demanding a new level of healthcare akin to that of the developed world. To reach these new customers (often literally halfway around the world) a supply chain must be considerably more sophisticated," said Carl Asmus, VP Supply Chain Solutions & Market Development for (FED).

David Binks became Regional President, FedEx Express, East Midlands Airport (EMEA) from January 1st. He succeeded Gerald Leary, who is retiring from the company after 39 years. Michael Holt, currently (CEO) of FedEx UK and VP Operational Intergration Europe, will assume David's current position as Senior VP European Operations.

To gain more market share, (FED) deployed its new 777F airplanes between the USA and China in a bid to attract healthcare customers who need shorter transit times and later pick ups.

March 2014: There were two interrelated themes that emerged over and over again at the 2014 (IATA) (ITA) World Cargo Symposium (WCS) in Los Angeles this month: 1) Air cargo is hurting; and 2) the air cargo industry is shockingly behind much of the rest of the business world (including the passenger airline business) in terms of automation and electronic processing.

Even as there has been a slight uptick in air cargo traffic in recent months, yields have not improved. “We’re shipping more for less,” one airline cargo executive said. Everyone at the (IATA) (WCS) agreed that air cargo has lost market share to ocean transport. Increasingly, shippers are deciding to pay -10 times less to ship goods by other modes (particularly ocean, but also rail and road) rather than pay the premium price to move cargo by air. “Ocean transport has become more reliable with more sailing frequencies per lane offered by carrier alliances,” FedEx (FED) Chairman & (CEO), Frederick Smith explained. “Combined with improved shipment information, fuel-efficient slow-steaming container ships allow products to be landed at the destination port with great predictability.”

(IATA) Global Head of Cargo, Des Vertannes said bluntly, “Shippers believe they’re not getting premium service for the premium price of air cargo.” He noted that the average end-to-end time for air cargo consignments is around 6 - 7 days, which is exactly what it was in the 1960s. Ocean shipping may take 30 - 40 days, but with a little pre-planning, shippers can save a lot of money moving cargo by sea rather than air (and be reassured by ocean shipping’s improved reliability). Vertannes believes air cargo end-to-end delivery time needs to be cut by about two days by the end of this decade for air to regain its value proposition.

A big reason air cargo moves so slowly is that the whole process continues to be extremely overburdened by paper in an e-commerce age. Air cargo often sits idle, or gets held up, because of paperwork. The air cargo industry is struggling to automate even the most basic piece of paper (the air waybill, which is roughly the equivalent of a passenger air ticket).

The air ticketing process is now almost entirely paperless. Not so for air cargo, which achieved just 12% e-air waybill penetration in 2013, not even close to the global industry’s modest goal of achieving 20% penetration.

Part of the problem is that the air cargo industry (aside from the express operators) is made up of multiple players. Whereas the big integrated delivery companies (FedEx (FED), (UPS) and (DHL)) largely handle their express packages end-to-end, traditional air cargo is passed from shippers to forwarders to ground handlers to airlines and back to forwarders again at the arrival airport. As a result, everyone seems reluctant to invest the necessary money to transform paper processing to e-processing.

Henrik Lund, Director of Global Airfreight for forwarding giant, Hellmann Worldwide Logistics, said, “The goal for us is to have true e-freight end-to-end. What we want is a seamless e-cargo supply chain. The word ‘seamless’ has been used [in the air cargo industry] for about 15 years, but it hasn’t happened yet. It’s all about the players working together. It’s all about harmonized processes and messaging across the whole supply chain.”

Global Shippers Forum Secretary General, Chris Welsh said shippers are frustrated by the air cargo industry’s inability to move forward with e-freight. Paradoxically, this means many shippers are not investing in the necessary Information Technology (IT) to help streamline the air cargo process.

Forwarders and airlines would like shippers to “key in” reliable data that could accompany the shipment from the start of the whole process. But shippers point to the fact that airlines and forwarders haven’t even been able to manage making the air waybill electronic, casting doubt on whether data provided by shippers would even technically be allowed to remain in electronic form throughout the airfreight transport process.

“The frustration is that the [air cargo] industry hasn’t been able to grasp this when the benefits to everyone are so obvious,” Welsh said during a (WCS) panel discussion. “What’s advisable first is for airlines and freight forwarders to sort out the e-airway bill, to make sure that’s doable. Shippers are not going to invest in new [e-commerce systems and processes] until they know what the [air e-cargo] architecture is. They are waiting for signals from the [air cargo] industry to see what the architecture is.”

Vertannes said, “Once shippers see that we’ve been able to transform our infrastructure, then the value proposition [for air cargo] will become more obvious.”

May 2014: FedEx Corporation has completed the acquisition of Supaswift businesses in seven southern African countries, giving its FedEx Express (FED) unit direct access to an extensive delivery network in the region.

FedEx Express (FED) will take over 40 Supaswift facilities employing more than >1,000 workers in South Africa, Botswana, Malawi, Mozambique, Namibia, Swaziland, and Zambia. (FED) announced last June that it was beginning the process of acquiring Supaswift assets. Supaswift has long been a service provider to (FED) in the region.

“The acquisitions provide FedEx Express (FED) access to an established regional ground network and extensive knowledge of the southern Africa region,” (FED) said.

FedEx (FED) Chairman, President & (CEO), Frederick Smith said, “Southern Africa is a key region for us. The region offers tremendous opportunities for both local and international customers to access new markets and increase market share.”

FedEx Express (FED) operates a fleet of 649 cargo airplanes serving more than >375 airports worldwide.

June 2014: SEE ATTACHED - - "FED-2014-06-GOOD STUFF" describes all-time high value of shares.

FedEx (FED) earned net income of +$2.08 billion for its fiscal year ended May 31, up +34% over a net profit of +$1.56 billion for the previous fiscal year, on a +3% rise in revenue to $45.57 billion.

Fiscal year operating expenses increased +1% to $42.12 billion and operating income was $3.45 billion, up +35% over an operating profit of $2.55 billion in the prior fiscal year. “Fiscal 2014 was a good year for FedEx and we expect fiscal 2015 to be even better,” (CFO) Alan Graf said, predicting “continued modest economic improvement” globally.

The Memphis-based company’s FedEx Express unit, which operates a fleet of more than >645 cargo airplanes, reported an operating profit for the fiscal year of +$1.17 billion, more than doubling an operating profit of +$555 million in the prior fiscal year. However, the unit’s revenue was flat year-over-year at $27.12 billion.

July 2014: INCDT: A FedEx (FED) MD-10F from Memphis had to be diverted to Nashville International Airport on Wednesday morning, July 2nd.

(FED) officials said the MD-10F airplane was en route to Manchester, New Hampshire, when it was forced to land in Nashville. They said they are working with authorities to determine what happened.

According to FlightAware.com, the flight left Memphis International at 3:56 am, and landed in Nashville at 4:53 am.

Reports said there was smoke in the cockpit. Only the pilot (FC) and co-pilot (FC) were on board the plane at the time. No injuries were reported.

The airplane remained on the tarmac, but runway traffic was not affected.

September 2014: FedEx Corporation reported a consolidated net profit of +$606 million for its Fiscal Year (FY) 2015 first quarter ended August 31, up +24% over net earnings of +$489 million in the first-quarter (FY) 2014.

The company cited higher volumes and increased yields at all three transportation segments, as the source of its operating income growth. Lowered pension expenses also contributed to FedEx (FED)’s improved bottom line.

“Our profit improvement programs are progressing as planned and we continue to expect strong earnings growth this year,” FedEx Corporation, Executive VP & (CFO), Alan Graf said.

FedEx Express (FED) reported fiscal-first quarter revenue of $6.86 billion, a +4% improvement on $6.61 billion in revenue in the prior-year period. While operating expenses for the unit rose +2.5% year-over-year to $6.49 billion, operating income for the quarter rose +35.2% year-over-year to $369 million. The (FED) segment’s operating margin was 5.4% for the quarter, growing from 3.1% in the previous fiscal year’s August quarter.

“Operating income and margin improved as higher USA domestic package volume, improved international export yield, and benefits from profit improvement programs more than offset the higher airplane maintenance expense and lower freight revenues,” (FED) said.

Overall company revenue for (FED)’s (FY) 2015 first-quarter came to $11.68 billion, up +6% year-over-year. Expenses rose +4.6% to $10.7 billion and operating income grew +24.2% year-over-year to $987 million.

The company plans to increase FedEx Express shipping rates by an average of 4.9% for USA domestic, USA export and USA import services, effective January 5, 2015.

October 2014: FedEx Express (FED) is expanding its “International First” time-definite, door-to-door, early delivery service to more than >30 new countries, including China, South Korea, and India.

Depending on the origin and destination of the shipment, International First shipments arrive in one to three business days as early as 8 am in the USA, 9 am in Europe and 10 am in Asia, Canada, and Latin America.

“The service is most often used for business documents, electronic and high tech equipment, medical devices, clinical trials and gear for the entertainment industry (shipments that require delivery on a tight deadline),” FedEx (FED) said.

With the expansion, the service will now be available in 97 countries. Singapore, Poland and the United Arab Emirates (UAE) are also on the list of countries to which the FedEx (FED) early delivery service has been expanded.

“This latest ‘International First’ expansion highlights the (FED) commitment to serve our customers who need to ship critical, time-sensitive material,” Executive VP Global Strategy, Communications & Marketing, Raj Subramaniam said. “The expansion also aligns with our global growth strategy and the need to stay ahead of customer demand.”

December 2014: FedEx Corporation has posted a consolidated net profit of +$616 million for its (FY) 2015 second-quarter ended November 30, up +23.2% year-over-year from net income of +$500 million in the company’s (FY) 2014 second quarter.

January 2015: Boeing (TBC) delivered two new 767-300Fs to FedEx (FED).

March 2015: "FedEx: Don’t ‘Capitulate’ to USA Passenger Airlines on "Open Skies" by (ATW) Aaron Karp, March 19th, 2015.

FedEx Corporation (FED) is pushing back hard against major USA passenger airlines that, in the cargo giant’s view, are trying to get the USA government to alter "Open Skies" agreements with Middle East states that are integral to FedEx (FED)’s business.

American Airlines (AAL), United Airlines (UAL) and Delta Air Lines (DAL) have accused the United Arab Emirates (UAE) and Qatar of providing more than >$40 billion in state “subsidies” to Emirates Airline (EAD), Etihad Airways (EHD) and Qatar Airways (QTA) over the past decade, and appear to want the USA government to limit those airlines’ access to the USA by revisiting "Open Skies" agreements with the (UAE) and Qatar signed in 1999 and 2001, respectively. (EU) transport minister Violeta Bulc cited the USA airlines’ allegations when announcing she is seeking a new mandate from (EU) countries to open talks with the (UAE), Qatar and Saudi Arabia over “unfair subsidies to airlines.”

FedEx (FED), however, said "Open Skies" deals with Middle East states are crucial to its air cargo business and is urging the USA government not to “capitulate to the interests of a few carriers who stand ready to put their narrow, protectionist interests” ahead of the USA’s broader economic interests. (FED) is especially concerned about potential restrictions to its air cargo hub in Dubai.

Speaking to analysts, (FED) President & (CEO), David Bronczek said, “Our view is very simple. We believe in "Open Skies" and free trade, and we’ve been doing this for decades now. We base our whole business model on "Open Skies." We have a lot of business in the Middle East, a lot of business in Asia, and around the world. And of course for us, competing in an "Open Skies" environment is critical for us.”

In a letter recently sent to USA Secretary of State, John Kerry, Bronczek said, “Retrenchment in any way from "Open Skies" by the USA would jeopardize the economic growth benefits that air cargo provides. Retrenchment would result in higher fares and fewer options for flying passengers. Retrenchment benefits only a very few.”

Specifically, Bronczek said the "Open Skies" agreements the USA has with Middle East nations “are very valuable” to FedEx (FED), noting the Memphis-based express delivery operator’s Dubai hub was enabled by the USA - (UAE) "Open Skies" accord signed in 1999. “FedEx (FED) flights from the USA crisscross with our flights from India and Asia [at the Dubai hub] in order to move USA products into local markets,” he wrote. “This hub also acts as our gateway to Africa.”

Bronczek said (AAL), (UAL) and (DAL) “believe they have little to risk by limiting foreign carrier access to USA markets. What they want is for the USA government to protect them from competition from able, attractive new entrants.” He noted that “FedEx (FED) alone operates almost two-thirds more flights to the Middle East than all the USA passenger carriers combined. Modifications to [the USA - (UAE) "Open Skies"] agreement might spell the end of these opportunities.”

FedEx (FED) Founder, Chairman & (CEO), Frederick Smith told analysts this week that (FED) remains “very much in support of continuation of "Open Skies” and said the USA passenger carriers’ effort is part of a “very concerning trend” globally of “protectionism over the last several years.”

May 2015: FedEx (FED) has said it is making “timely progress” with its plans make an offer for 100% of Dutch integrator (TNT) Express (TNB), although it may need more time from Dutch authorities.

The €4.4 billion/$4.9 billion offer, which was announced in April, requires competition clearances from various bodies in Brazil, China, the European Union, the Netherlands, and the USA.

Although the competition approval process is “proceeding without delays,” FedEx (FED) warned that the formal clearances could take up to a year. “As such, it may be required to obtain an exemption from the [Dutch market regulator] (AFM) to (further) extend the offer period,” the companies said. (FED) still plans to submit an offer document to (AFM) before June 30, which is the deadline under Dutch law.

Two years ago, rival freight carrier (UPS) was blocked from a similar transaction on competition grounds, but the partners believe this deal will go through. “FedEx (FED) and (TNT) Express (TNB) remain confident that substantive anti-trust concerns, if any, can be addressed adequately and in a timely fashion,” the two companies said in a joint market update.

If the acquisition is successful, (TNB) will have to sell its airline operations. The partners expect to close the deal by June 2016.

June 2015: News Item A-1: The USA Federal Aviation Administration (FAA) has proposed fining FedEx (FED) $58,600, alleging that the freight carrier shipped improperly classified radioactive and hazardous materials on three flights in June and August 2014. The (FAA) said (FED) did not provide pilots (FC) operating the flights with accurate information about materials on board their airplanes.

News Item A-2: FedEx Corporation has retired 15 older FedEx (FED) Express airplanes as part of an effort to “rationalize capacity” and modernize its fleet. The retired airplanes include seven MD-11F freighters, one MD-10F, three Airbus A300Fs and four A310-300Fs. FedEx (FED) said the impact of retiring these airplanes, engines and related parts resulted in a non-cash impairment charge of $246 million recorded in May 2015.

July 2015: News Item A-1: FedEx Express (FED) has become the latest USA airline to sign a long-term off take agreement for low-carbon biofuels. The cargo carrier will buy some 3 million gallons of renewable jet fuel a year produced from woody biomass by Red Rock Biofuels.

Deliveries are expected to begin in 2017 and the agreement runs through 2024.

Southwest Airlines (SWA) signed a similar 3 million gallon/year agreement in September and, between them, the two carriers will take all of the jet fuel produced annually by Red Rock’s first bio-refinery, in Lakeview, Oregon.

United Airlines (UAL) in June signed a long-term agreement with Fulcrum Bio-Energy giving it the ability to buy at least 90 million gallons of sustainable jet fuel a year for a minimum of 10 years, beginning in 2018. This follows an earlier three-year agreement with AltAir Fuels, for bio-fuel deliveries beginning this year.

Red Rock will begin construction on its Lakeview facility this fall. Funded in part by a $70 million grant from the USA Department of Defense under the Title III of the Defense Production Act, the bio-refinery will convert 140,000 dry tons of forest debris to 15 million gallons per year of diesel, jet fuel and naphtha.

Woody biomass left over from logging will be gasified to produce syngas, then converted to syncrude via the Fischer-Tropsch process and upgraded to liquid fuels, including synthetic paraffinic kerosene jet fuel. Red Rock says it has long-term contracts that tie the cost of wood feedstock to diesel prices.

The process will reduce the risk of forest fires in the western USA by decreasing the amount of waste wood in surrounding forests, says Red Rock. In addition to the Title III grant for its first biorefinery, the Fort Collins, Colorado-based company has secured investment from venture-capital firm Flagship Ventures.

News Item A-2: FedEx Express (FED) has signed an agreement with Boeing (TBC) to buy 50 Boeing 767-300Fs with options on a further 50 airplanes, (FED) announced late July 21.

The 50 firm-order airplanes will be delivered from fiscal 2018 through fiscal 2023, (FED) said. With this order, (FED) holds a total of 106 firm orders for 767Fs through fiscal 2023.

(FED) President & (CEO), David Bronczek said the 767F “will enable us to reduce structural costs, improve our fuel efficiency and enhance the reliability of our global network.”

August 2015: News Item A-1: "United (UAL) (CEO) Plays Fast and Loose With Facts in NY speech on Gulf Carriers" Karen Walker in (ATW) Editor's Blog, July 31, 2015.

United (UAL) (CEO), Jeff Smisek was practically punching the air in a hard-hitting speech in New York that focused mainly on the Gulf carriers, which he said represent the single biggest threat to USA aviation. But how correct were the many accusations he flung?

I was at the Wings Club lunch event, which was oversold despite it being the club’s first July event. I reported and posted the main content of Smisek’s speech, which you can read here (the first covers his Middle East points, while the second covers the initial part of the speech, which focused on airlines behaving like businesses).

Let me say that Smisek’s remarks on USA airlines operating like businesses were bang on point. He never mentioned the (DOJ) and (DOT) investigations launched this summer into alleged collusion and price-gouging (both ridiculous in my mind), but this part of the speech was clearly aimed as much at Washington, as it was customers who buy overpriced sodas and hotdogs at a stadium and do not question why they should pay more for a stadium seat with a good view, but think it outrageous to pay for a better seat on an airliner or for a bag that costs more for the airline to transport.

So good for Smisek for saying it clear and loud: airlines are businesses and it’s time everyone recognized that.

Smisek then moved to the Gulf carriers and why (UAL), (DAL) and (AAL) are sticking to their guns in their campaign against the expansion of Emirates (EAD), Etihad (EHD) and Qatar (QTA) in the USA market through their countries’ "Open Skies" agreements.

A couple of things I’d like to note. Smisek delivered his speech away from the podium and without any notes. It was a very slick, engaging and dynamic speech with several soundbites that he knew would be attention-grabbers and raise a laugh, which they did. The Gulf carriers had been “caught with their subsidies down by their ankles;” “it’s good to be king” (a reference to Mohammed bin Rashid Al Maktoum’s power while flashing an organizational chart of (UAE) leadership that all pointed to Maktoum).

My feeling was that he has given close versions of this speech several times before to those people and organizations that the so-called "Partnership for Fair & Open Skies" has reached out to support their campaign.

There were many pilots (FC) in the room from several airlines, including (UAL), (AAL), (DAL) and (SWA). Pilot unions were among the first to support the campaign and Smisek several times referred to hundreds of USA job losses that would result from Gulf carrier expansion.

But what about some of the points he presented as facts? Below are my counterpoints to some of those “facts” and why this was in the end a clever speech, but not one that did the USA campaign much credit.

Smisek: “All three Gulf carriers are losing tons of money”
Counterpoint: All the evidence with (EAD) is that it is very profitable; (ATW) figures show the Emirates Group posting a +$1.5 billion net profit for 2014. The report commissioned by (AAL), (DAL) and (UAL) made a significant error saying (EAD) passed on fuel hedge losses to the Dubai government and (EAD) documented the real facts in its report. (EHD) reported a 2014 net profit of +$73 million, its fourth consecutive year of profit.

Smisek: “Airline traffic should grow at about the same rate as Gross Domestic Profit (GDP); the Gulf carriers have been growing almost four times (GDP).”

Counterpoint: My thanks to Airline/Aircraft Projects Inc consultant, Craig Jenks who was in the room and points out that in growth economies, such as those the Gulf carriers predominantly serve, airline traffic typically grows at about twice that of (GDP).

Smisek: “Lufthansa (DLH), Air France (AFA) - (KLM), and British Airways (BAB) have been decimated by the Gulf carriers.”

Counterpoint: None of these airlines are decimated. All three carriers, as reported in the (ATW) 2015 World Airline Report, ranked in the top 10 of world carriers by passenger (RPK)s for 2014 and by operating revenue. (BAB) owner, the (IAG) was the world’s sixth most profitable, with a net profit of $1 billion. Lufthansa (DLH) and (AFA) - (KLM)’s financial problems are at least in part related to their internal struggles with unions to restructure costs and be competitive with Europe’s successful low cost carriers (LCC)s. Smisek did caveat this statement, saying (BAB) was “a little better protected” because of its Heathrow (LHR) hub. But that gives scant credit to (IAG)’s smart management and, as a side note, ignores the fact that (IAG) (CEO), Willie Walsh has made clear that the USA campaign (and adjacent campaigns in Europe) are protectionist. Qatar Airways (QTA), by the way, now owns a 10% stake in the (IAG) and is a Oneworld (ONW) Alliance member alongside (BAB) and (AAL).

Smisek: “These [Gulf] carriers would not exist without government subsidies.”

Counterpoint: Many, if not all legacy European carriers and many Asian carriers, too, exist only because of the initial funding and support they received from their then-government owners. A similar sentence could be said of the three consolidated majors: none would exist today without Chapter 11 and the ability to wipe out debt through Chapter 11-protected restructuring. And, as the (ATW) 2015 World Airline Report shows, (EAD) and (EHD) are profitable.

Smisek: The Gulf carriers represent “the biggest single threat to our new-found prosperity.”

Counterpoint: With thanks again to (AAP)’s Jenks, who calculates that without the Gulf carriers, (UAL) might perhaps run three extra India flights and one extra Frankfurt flight, due to alliance partner Lufthansa (DLH) being able to operate better (FRA) - India service; not a make-or-break for prosperity

Smisek: The USA/(UAE) "Open Skies" agreement gave (UAE) carriers “unfettered access to the USA market, while the USA got access to Dubai.”

Counterpoint: The size of the country is not the point of "Open Skies" treaties. Indeed, the case could be made that it’s the smaller country that should fear being swamped by USA airline capacity. Regardless, the USA has "Open Skies" agreements with The Netherlands, Singapore, Panama and many other small-country states.

Smisek: (referring to a question about (EAD)’s Dubai - Milan - New York (JFK) fifth freedom route) “They are flouting their right to stop and refuel in Europe to add point-to-point business, even though today’s aircraft technology doesn’t need refueling to get from the Emirates to the USA”.

Counterpoint: Commercial fifth freedom rights are in all "Open Skies" agreements and have nothing to do with “fuel stops.”

Smisek: [Etihad (EHD)’s] new "Residence-class suites with butler service" is something that “no one would pay for” and can only be offered by a subsidized airline.

Counterpoint: (EHD)’s first Residence booking on its Abu Dhabi - (JFK) route, which starts December 1, sold within hours of becoming available.

Smisek: If airlines were governed by (WTO) rules, Gulf carrier activity “would be a clear case of dumping.”

Counterpoint: Irrelevant. Airlines are not under (WTO) jurisdiction and it’s the last thing USA airlines (and unions) want, because it would open them up to changing their current ownership/citizenship and cabotage protections.

Finally, back to that “good to be the king” remark. Actually, Maktoum is Vice President & Prime Minister of the (UAE) and is the Emir of Dubai.

A day later, four other USA airlines said they have formed a new coalition to oppose the campaign to fight expansion of the Gulf carriers in the USA. The (CEO)s of Atlas Air (TLS), FedEx (FED), Hawaiian Airlines (HWL), and JetBlue Airways (JBL) submitted a joint letter to the USA government saying that what (AAL), (DAL), and (UAL) are seeking would be a breach of the "Open Skies" treaties and are a political maneuver to reduce competition.

(FED) operates a freight hub in Dubai, (HWI) uses "Open Skies" rules to serve multiple destinations in Asia. JetBlue (JBL) partners with (EAD) and (EHD) to feed its domestic flights.

USA exports made possible through "Open Skies" agreements will contribute $900 billion and 347,000 jobs to the USA economy, according to a study commissioned by FedEx (FED) to support its opposition to the anti-Gulf carrier campaign, headed by (AAL), (DAL)s and (UAL).

News Item A-2: The European Commission (EC) has begun an in-depth investigation to assess whether the proposed acquisition of Netherlands-based (TNT) Express (TNB) by USA-based FedEx Corporation is in line with European Union (EU) merger regulations.

News Item A-3: FedEx (FED) will formally launch its €4.4 billion/$4.9 billion takeover bid for (TNT) Express (TNB) on August 24, offering €8.00 per share for the freight specialist, with the aim of completing the acquisition in the first half of 2016.

News Item A-4: FedEx Express (FED) pilots (FC) have reached a tentative agreement with FedEx Corporation management on a new labor contract that would extend to 2021.

The Air Line Pilots Association (ALPA), which represents (FED)’s 4,000 pilots (FC), said the tentative accord was reached under National Mediation Board (NMB) guidance and must still be approved by the FedEx (FED) (ALPA) Master Executive Council (MEC) and ratified by rank-and-file FedEx (FED) pilots (FC).

(ALPA) and FedEx (FED) have been negotiating the terms of a new contract since 2011. (FED) (ALPA) (MEC) Chairman, Chuck Dyer said "The process has not always been easy, but our pilots (FC) and their families remained steadfast in their support of our negotiating committee. The (MEC) has a rigorous process when it comes to evaluating these types of agreements, and we look forward to fully vetting this tentative agreement.”

Terms of the tentative agreement have not been released. (FED) said that the tentative agreement “contains great value for our pilots (FC).”

September 2015: News Item A-1: "FedEx (FED) Looks to Fleet Renewal, and Avionics Modernization" by Juliet Van Wagenen, "Avionics" September 1, 2005.

FedEx Express (FED), which operates the world’s fourth largest fleet, has its eyes on major fleet modernization initiatives to introduce newer, more operationally efficient airplanes into the fleet. Earlier this summer, (FED) announced the purchase of 50 Boeing 767-300F airplanes scheduled for delivery between 2018 and 2023 to the tune of nearly $10 billion at list prices (the largest order for the 767 to date). The purchase announcement follows on the heels of (FED)’s accelerated retirement of 15 airplanes and 21 related engines, including: seven MD-11s, three Airbus A300s, four A310-300s, and one MD-10-10. (FED) also adjusted the retirement schedule of an additional 23 airplanes and 57 engines.

These early retirements, according to (FED)’s fourth quarter earning’s report, resulted in $276 million impairment and related charges, which, alongside lower fuel surcharges and unfavorable currency exchange rates, may have contributed to the company’s 4% revenue drop for the quarter in the FedEx Express (FED) segment when compared to 2014. Despite the current impact, Michael Bielskis, Communications Advisor at FedEx Express, noted that the early retirement has had no effect on flight routes for the global company and, in the long run, the new airplanes will offer improvements that will likely improve earnings.

“The retired airplanes were replaced with a combination of 757 and 767 airplanes or were parked, based on efficiency initiatives related to (FED)'s Profit Improvement Program,” said Bielskis, referencing (FED)’s initiative to improve operating profits by +$1.6 billion at FedEx Express (FED) by the end of fiscal year 2016.

The initiative extends across the company but may prove particularly difficult to achieve in the Express segment, where operating costs are difficult to reduce. Upping operational efficiencies with new airplanes may open the door to the profits, (FED) is hoping to see over the next year.

“[The new airplanes] will modernize the (FED) fleet through improved reliability and fuel-efficiency,” Bielskis said. “Mechanical reliability and fuel efficiency are keys to our decision-making.”

(FED) is also looking to up operational efficiency with several avionics upgrades across the fleet for the incoming airplanes.
“(FED) is installing Innovative Support & Solutions (IS&S) displays on our 757-200SF fleet and the Rockwell Collins Large Display System (LDS) on our 767-3S2F deliveries,” said Bielskis. The new displays promise to offer greater control, less weight and lower fuel burn, and lower operating costs.

The current fleet will see some changes as well, including equipping for Required Navigational Performance (RNP), which promises to enable more efficient approaches to runways, including curved paths. “With respect to existing fleets, (FED) has made recent investments into 757 (RNP) software, 757 Future Air Navigation System (FANS) software, and MD-11 Flight Management System (FMS) enhancements to accommodate (RNP). Finally, (FED) is installing Head Up Displays/Enhanced Flight Vision Systems (HUD/EFVS) on our 777, 767 and 757, MD-11 and MD-10 fleets,” Bielskis detailed.

Going forward, (FED) is currently evaluating a Flight Management System (FMS) upgrade to its A300-600 and A310-300 fleets to accommodate an increasing number of way-points and to fly (RNP) routes, including Radius-to-Fix Leg (RF Leg).

Connectivity is also on the menu, with the company pursuing an Aircraft Interface Device (AID) for its fleet, that will eventually provide satellite connectivity and data such as updated weather forecasts to the crew during flight.

Last, (FED) is also equipping to comply with upcoming NextGen mandates by upgrading all (FED) airplane transponders to DO-260B requirements in order to comply with the (FAA)’s FAR 91.225. The mandate lays out the Automatic Dependent Surveillance-Broadcast (ADS-B) equipment requirements necessary to operate in certain classes of airspace, effective January 1 2020.

October 2015: "(TNT) Express (TNB) Passes Takeover Resolutions; Warns On Third Quarter" by (ATW) Victoria Moores, October 9, 2015.

(TNT) Express (TNB) shareholders have passed a series of resolutions during an extraordinary general meeting, paving the way for FedEx (FED) to acquire the company.

However, in a trading update released just ahead of the meeting, (TNT) cautioned its third quarter adjusted operating income will be “materially” lower than in the same period of last year.

(TNT) said it has made progress with the roll-out of its three- to five-year “Outlook” turnaround strategy, posting underlying revenue growth, but economic volatility in Brazil, China and Australia weighed on its performance. It also faced headwinds in the Australian domestic market and its French operations posted “substantially lower margins.” Transition costs and a €300 million/€338 million investment in transport and Information Technology (IT) infrastructure in 2015, but not due for completion until 2016, also had an impact.

“In view of these factors, as well as Outlook-related transition costs, (TNT) anticipates that third-quarter adjusted operating income will be materially lower than in the same period of last year. As stated in February, 2015 is a challenging year of transition for (TNT), which expects to “achieve year-over-year improvements from 2016 onward and to realize the full benefits of Outlook from 2018 - 2019,” it said.

During the (EGM), (TNT)’s shareholders accepted all the resolutions related to the €4.4 billion Fedex (FED) takeover, including the appointment of three (FED) executives (David Cunningham, Christine Richards and David Bronczek) to the (TNT) Express supervisory board, once the deal is finalized.

Shareholders have until October 30 to tender their shares under the €8.00 per share takeover bid; FedEx (FED) is aiming to complete the acquisition in the first half of 2016. If the deal succeeds, (TNT) Express’ European airline operations will be divested due to airline ownership regulations.

(TNT) is due to detail its third quarter performance on October 26.

November 2015: (GE) Aviation announced FedEx Express (FED), a wholly owned subsidiary of FedEx Corporation, selected (GE)’s (CF6-80C2) engines to power its recent order of 50 Boeing 767F freighters. Deliveries for this order are scheduled to begin in 2018.

757-222 (26698, N793FD), ferried to Mobile for cargo conversion. 767-3S2F (42718, N126FE) named "Josie," 767-3S2F (43548, N129FE) delivery.

December 2015: News Item A-1: "Amazon to Set Up Own Air Freight Unit" by www.ch-aviation.com, December 21, 2015.

Online retail giant Amazon is in talks with Boeing (TBC)) over the proposed acquisition of "at least" 20 freighter airplanes, "Cargo Facts" has reported.

Following weeks of speculation in the cargo community, informed sources told "Cargo Facts" that Amazon is indeed pushing ahead with plans to set up its own air freight operation, specializing in overnight deliveries throughout the USA. As such, talks with Boeing (TBC) reportedly focus on the 767-300F with deliveries to be spanned over three years.

In preparation for the logistics unit launch, Amazon has partnered fellow USA firm and parent to (ABX) Air ((IATA) Code: GB, based at Wilmington, Ohio, USA), Air Transport Services Group Inc, in trialing freighter operations. Thus far, Amazon has set up bases around the USA including Seattle Boeing Field and Wilmington, Ohio. At the former, Amazon has chartered a 737F freighter from Northern Air Cargo ((IATA) Code: NC, based at Anchorage Ted Stevens) (NAC) for use in serving Seattle, San Bernardino (close to a large Amazon fulfillment center), and the small city of Boise in Western Idaho.

The multi-billion dollar firm's move into the logistics market is expected to have serious repercussions on the global air freight market, given that the majority of its parcels are shipped using third party operators such as United Parcel Service (UPS), FedEx (FED), and the United States Postal Service.

January 2016: News Item A-1: "European Commission (EC) Formally Approves FedEx (FED) - (TNT) (TNB) Merger" by (AYW) Aaron Karp, January, 2016.

The European Commission (EC) has formally approved FedEx Corporation’s proposed €4.4 billion/$4.77 billion acquisition of (TNT) Express (TNB). “Following an in-depth investigation opened in July 2015, the (EC) has concluded that the acquisition will not give rise to competition concerns, because (FED) and (TNB) are not particularly close competitors and because the merged entity will continue to face sufficient competition from its rivals in all markets concerned,” the (EC) said on January 8.

The (EC) clearance moves (FED) and (TNB) closer to completing the deal. The USA government cleared the acquisition in November. With USA and (EU) approval now secured, regulators in China and Brazil present the biggest remaining hurdles to closing the transaction.

“We are extremely pleased to receive the (EC)’s unconditional approval,” FedEx Express (FED) Regional President Europe David Binks said. “We believe the combination of (TNT) Express (TNB) and (FED) will provide significant value to the employees, customers and shareholders of both companies.”

(FED) and (TNB) have extended to June 6 the acceptance period for FedEx (FED)’s public offer. The companies said they will work toward gaining regulatory clearance from Brazil and China by that date.

News Item A-2: "The (FAA) Proposes $417,500 Civil Penalty Against FedEx (FED)" by (ATW) Linda Blachly, January 15, 2016.

The (FAA) has proposed a $417,500 civil penalty against FedEx (FED) for allegedly operating an airplane that was not in compliance with federal aviation regulations.

The (FAA) said it alleges that FedEx (FED) “failed to rebalance a horizontal stabilizer tab control surface on a Boeing 727 after repainting the part. The Boeing 727 Structural Repair Manual identifies the work as a major repair and requires rebalancing the control surface after the work is done.”

According to the statement, the (FAA) “alleged that FedEx (FED)’s failure to perform the rebalancing requirements rendered the airplane unairworthy and that the company operated the airplane on at least 133 flights, when it was in that condition.”

News Item A-3: FedEx Corporation commits to buy 16 Boeing 777Fs
Updated January 4, 2016.

(FED) has committed to buying 16 Boeing 777Fs as part of a fleet modernization program (a potential investment of an estimated $5 billion).

According to the Boeing Company, the current price tag for a 777F averages about $318.7 million (a +2.9% price increase from 2014's average of $309.7 million. At the current rate, an order of 16 would cost about $5 billion. However, it's possible a large order would come with a discount.

While (FED) did not make an announcement about buying the 777Fs, the company is committed to purchase 16 of the airplanes from Boeing, according to (FED)'s (Q2), (FY) 2016 Stat Book.

Representatives for FedEx (FED) said they had been committed to these airplanes for some time and included them in the company's 2015 Annual Report, published in August.

Fulfillment of the 16 additional airplane order will begin in 2020, with an anticipated delivery of 3 planes that year and 3 in 2021.

In July, market intelligence fueled airline industry rumors about FedEx upping its order of 767F Freighters from Boeing and adding an order of up to 10 additional 777F Freighters. FedEx (FED) confirmed that it agreed to purchase 50 additional 767s, bringing the total order to 106 through fiscal 2023. At the current average price of about $199.3 million, that comes to $9.9 billion in additional investment for the 767s.

February 2016: News Item A-1: "Brazil Approves FedEx Takeover of (TNT) Express (TNB)" by (ATW) Victoria Moores, February 2, 2016.

Brazilian competition watchdog Conselho Administrativo de Defesa Econômica has unconditionally approved FedEx (FED)’s plans to acquire (TNT) Express (TNB).

In February 2015, FedEx (FED) inked a conditional agreement to acquire 100% of (TNT) Express for €4.4 billion/$4.9 billion.

Announcing the unconditional Brazilian clearance on February 2, (FED) President & (CEO) David Bronczek said the acquisition will bring opportunities for (FED)’s stakeholders in Latin America and across the globe.

The Brazilian approval can be appealed within 15 calendar days of the official publication of the decision.

For the merger to complete, (FED) and (TNB) require competition approval from the European Union (EU), Brazil, China, and the USA. Of these, China is now the only clearance outstanding.

“FedEx (FED) and TNT Express (TNB) continue to work constructively with the regulatory authorities to obtain clearance of the transaction in the relevant jurisdictions, including China. (FED) and (TNB) are making timely progress and continue to anticipate that the offer will close in the 1st half of calendar year 2016,” the partners said.

A previous tie-up between (TNB) and USA-based United Parcel Service (UPS) fell down on competition clearances. There are currently only 4 integrators operating in the European Economic Area, including (FED) and (TNB). The other 2 are (DHL), which is owned by Deutsche Post, and (UPS).

News Item A-2:: The (ASL) Aviation Group has signed a conditional agreement to buy 2 cargo airlines owned by (TNT) Express (TNB), which is itself being acquired by FedEx (FED).

(TNT) Express (TNB) is being acquired by (FED) and, if the deal succeeds, (TNT)’s Belgian airline (TNT) Airways (TNB) and its Spanish carrier Pan Air Líneas Aéreas will have to be divested due to airline ownership regulations.

As reported by (ATW) last November, the (ASL) Aviation Group was always a likely candidate to acquire the two airlines. This is because the (ASL) Aviation Group was on track to acquire (TNT) Airways (TNB) and Pan Air (PNZ) in 2012, when United Parcel Service (UPS) launched a takeover bid for (TNT) Express. This deal ultimately failed on competition grounds, thwarting (ASL) Aviation’s plans to acquire the cargo carriers.

(TNT) Express said it has now agreed to sell (TNT) Airways (TNB) and Pan Air (PNZ) to (ASL) Aviation for an undisclosed sum. However, once again, this sub-deal is conditional on FedEx (FED)’s acquisition of (TNT) Express going ahead.

“The change of ownership and control of (TNT)’s airline operations will ensure continuity of service delivery as well as compliance with (EU) airline ownership and control rules. It is another step towards closing of the (FED) offer to acquire (TNT),” (TNT) Express said.

(ASL) Aviation (CEO) Hugh Flynn described the acquisition of (TNT) Airways and Pan Air (PNZ) as a “key strategic step” for his company’s growth, with (ASL) Aviation acting as a “neutral aviation services provider” for the FedEx (FED) - (TNT) combination.

Under the plan, (ASL) Aviation will take over (TNT) Airways and Pan Air Líneas Aéreas (PNZ)’s flights from the moment that the sale of (TNT) Express to FedEx (FED) is completed. (ASL) Aviation has signed a multi-year deal with (TNT) Express, where it will operate flights for the newly joined (FED) - (TNT).

“In anticipation for closing, we had to find a new owner for (TNT)’s airlines to comply with aviation regulations. With (ASL) Aviation Group, we have found an experienced aviation group that can meet the high service standards that we have implemented at (TNT) over the last 2 years,” (TNT) (CEO) Tex Gunning said. “Great progress is being made in planning the integration of FedEx (FED) and (TNT).”

This time, the upper level acquisition between (FED) and (TNT) Express seems to be proceeding more smoothly, with crucial competition clearances already secured from the (EU), Brazil and the USA. However, the Brazilian approval could still be appealed and a further clearance is required from China for the acquisition to go ahead. On February 2, (FED) and (TNT) Express said they are making progress and still expect to close the offer in the 1st half of 2016.

Upon completion, employees of (TNT) Airways and Pan Air (PNZ) will become part of (ASL) Aviation Group. (TNT) Airways’ headquarters in Liège will be retained. (TNT) Express’ Liège hub is not part of the sale and will be retained by (FED) - (TNT).

The (ASL) Aviation Group holds 7 air operator’s certificates (AOCs) in Europe, Asia, and Africa. Its European airlines comprise Irish cargo specialist, Air Contractors (HCA) (recently re-branded as (ASL) Airlines Ireland), Europe Airpost (EUE) (ASL Airlines France), Farnair Switzerland (ASL Airlines Switzerland) and Farnair Hungary (ASL Airlines Hungary). It also has stakes in South Africa’s FlySafair (SFA), Thai freight carrier K-Mile (KMI) and India’s Quikjet Cargo Airlines.

The Irish firm owns and operates a fleet of around 100 aircraft, although this will grow to >130 following the acquisition.

The diverse company, which generated a €382 million turnover in 2015, also owns 2 support services companies and various leasing entities.

March 2016: News Item A-1: USA-based FedEx Corporation reported a fiscal 3rd-quarter net profit of +$507 million, down -19% from net income of +$628 million earned in the prior-year quarter, but the company pointed to rising revenue and a strong performance in its FedEx Express airline segment.

The net profit decline for the quarter ended February 29 is largely attributable to a one-time charge of $204 million for the settlement of a legal matter in the company’s FedEx (FED) Ground unit related to contract drivers. (FED) also reported a one-time charge of $23 million tied to its acquisition of (TNT) Express (TNB), which (FED) expects to close in the 1st half of the 2016 calendar year.

FedEx (FED)’s companywide fiscal 3rd-quarter revenue increased +8% year-over-year to $12.65 billion, while expenses heightened +10% to $11.79 billion, producing an operating profit of +$864 million, down -17% from operating income of $1.04 billion in the prior-year quarter.

(CFO) Alan Graf called the Express segment FedEx’s “star” performer, noting that the unit’s fiscal third-quarter operating profit rose +51% year-over-year to +$595 million, despite a -1% drop in segment revenue to $6.56 billion. The unit’s 9.1% operating margin was the 3rd best quarterly operating margin in FedEx Express (FED) history, he said.

Graf told analysts, “Operating income climbed 51% and operating margin increased despite lower revenues—who does that? The increase was driven primarily by yield management, USA domestic volume growth and ongoing benefits from [a] profit improvement program. Express is efficiently managing volume increases in e-commerce and at the same time continued softness in international volumes.”

Executive VP Market Development & Corporate Communications Mike Glenn said the 2015 holiday season made clear that e-commerce has enabled a “retail revolution.” He explained that “referring to a specific peak day [during the holiday season] is quickly becoming a thing of the past. As evidenced this year, there were multiple days where volumes exceeded 25 million packages as consumer buying habits are changing. We view this as a positive as Mother Nature can sometimes play havoc with last minute e-commerce shoppers. Smoothing sales throughout peak season is a trend that will benefit retailers and transportation companies alike.”

News Item A-2: "Brazil Rejects (UPS) Appeal of FedEx-(TNT) Merger Approval" by (ATW) Aaron Karp, March 30, 2016.

Brazilian regulatory agency, Conselho Administrativo de Defesa Econômica (CADE) has rejected United Parcel Service (UPS)' appeal of (CADE)’s approval of the FedEx Corporation - (TNT) Express (TNB) merger.

(CADE) had previously unconditionally approved (FED)’s acquisition of Netherlands-based (TNT) Express (TNB), joining regulators in the European Union (EU) and the (USA) in clearing the transaction. The rejection of (UPS)’ appeal, which reaffirms the Brazilian government’s approval, means only the Chinese government’s approval is needed for the merger to close.

(FED) has said it expects to close its takeover of (TNT) Express (TNB) in the first half of this year.

News Item A-3: "FedEx on the ‘Retail Revolution’ and Whether Amazon is a Rival" by (ATW) Aaron Karp in AirKarp Blog, March 18, 2016.

FedEx (FED) executives expressed some interesting thoughts about the “retail revolution” brought on by e-commerce and the implications for expedited delivery companies. Their message: the world is changing, but we are successfully adapting.

During a conference call with analysts to discuss (FED)’s fiscal third-quarter earnings, Executive VP Market Development & Corporate Communications Mike Glenn said the quarter, which included the 2015 holiday season, reinforced a number of express cargo delivery trends driven by e-ecommerce. He focused on 3: 1) “Referring to a specific peak day [during the holiday season] is quickly becoming a thing of the past. As evidenced [in 2015], there were multiple days where volumes exceeded 25 million packages as consumer buying habits are changing, smoothing sales throughout the peak season.” 2) “More and more retailers are fulfilling e-commerce orders from individual stores or what we call store to home delivery.” 3) “We are seeing a significant increase in non-traditional items now being purchased online from mattresses to new swing sets and big screen TVs.”

Of course, one of the main drivers of the “retail revolution” is Amazon, which has announced it is wet leasing 20 Boeing 767F freighters from the Air Transport Services Group (ATSG) to create an Amazon-dedicated air cargo network for USA customers. Some pointed to the move as a sign that Amazon is looking to challenge FedEx (FED) and (UPS) in the expedited delivery arena. But while FedEx acknowledged that the (ATSG) deal will inevitably cut into its Amazon-related business, company executives say they do not view Amazon as a threat.

Glenn noted that 95% of all e-commerce orders placed in the USA today are delivered by either FedEx (FED), the USA Postal Service or (UPS). “In fact, if we were to isolate our e-commerce business, one could argue that FedEx (FED) is one of the most profitable e-commerce companies in business today,” he said.

Glenn added that “Amazon is a valuable customer that we’ve worked with for many years and we expect to work with them for many years to come. We’ve been aware of Amazon’s need for supplemental capacity related to inventory management, which is driving some of the investments they are making in transportation.”

He noted that “large retailers have long had their own transportation capabilities, primarily to enable movement and positioning of inventory across their store and fulfillment locations.” But reports that Amazon could actually compete head-to-head with FedEx (FED) shouldn’t be taken seriously, he argued.

“The reality is it will be a daunting task requiring tens of billions of dollars in capital and years to build sufficient scale and density to replicate existing networks like FedEx (FED),” Glenn said. He and (CFO) Alan Graf said FedEx (FED) could withstand a small hit to its Amazon-related business without much damage.

“No single customer represents >3% of our total revenue, so we are not exposed to any one customer and we try to manage our business so that we don’t get over exposed in that regard,” Graf explained. “So we’re well positioned for growth long term and Amazon is a good customer we expect to be a good customer long term.”

April 2016: FedEx Express (FED) has ended A310-200F operations with its last remaining airframe of the type, A310-200F (278, N454FE), having been ferried to Victorville on April 11.

May 2016: News Item A-1: "Amazon Agrees to Contract 20 767-300ERF freighters from Atlas Air" by (ATW) Aaron Karp, May 5, 2016.

Amazon has reached an agreement with Purchase, New York-based Atlas Air Worldwide Holdings (AAWH) to wet lease 20 Boeing 767-300ERF converted freighters, the 2nd freighter lease deal, Amazon, the Seattle-based online retail giant has signed this year.

Under the agreement, Atlas Air Worldwide (AAWH) subsidiary, Atlas Air (TLS) will operate 20 767-300ERFs on a crew, maintenance and insurance (ACMI) wet-lease contract with Amazon for an initial term of seven years. Operations are slated to start in the 2nd half of this year and get up to full service in 2018.

In addition, (AAWH) has granted Amazon warrants to acquire up to 20% of the air cargo operator’s common shares at a price of $37.50 per share over a period of 5 years, plus an option to acquire an additional +10% over a period of 7 years, meaning Amazon could ultimately own as much as 30% of Atlas Air Worldwide (AAWH).

Amazon Senior VP worldwide Operations, Dave Clark said the Atlas Air (TLS)-operated 767ERFs will support package delivery to Amazon customers “who love ultra-fast delivery, great prices and vast selection.”

Amazon’s deal with Atlas Air Worldwide (AAWH) comes <2 months after Amazon struck a similar wet lease agreement with Wilmington, Ohio-based Air Transport Services Group (ATSG) (ABX), which will also operate 20 767ERFs on behalf of Amazon.

FedEx Corp (FED) Executive VP Market Development & Corporate Communications, Mike Glenn recently rejected speculation that Amazon is attempting to build its own air cargo network to compete with FedEx (FED) and United Parcel Service (UPS). “The reality is it will be a daunting task requiring tens of billions of dollars in capital and years to build sufficient scale and density to replicate existing networks like FedEx (fed),” Glenn said.

June 2016: FedEx Corporation (FED) expects to spend $300 million in its 2017 fiscal year to cover capital expenditures and integration costs related to its acquisition of Netherlands-based, (TNT) Express (TNB), which closed May 24.

(FED)’s 2017 fiscal year started June 1. Initial details of (FED)’s (TNT) integration plans emerged as (FED) reported a fiscal year 2016 net profit of +$1.82 billion for the year ended May 31, a +73% increase over net income of +$1.05 billion in the company’s 2015 fiscal year. FedEx (FED)’s total revenue in fiscal year 2016 was $50.37 billion, up +6% year-over-year and the 1st time (FED) has topped the $50 billion annual revenue mark.

(FED) (CFO) Alan Graf told analysts that fiscal year 2017 “will be a year of intense integration activities” for the (FED) unit as its operations are combined with (TNT). The merger integration could “impact [(FED)’s] operating income and margin” in the current fiscal year, but he projected (TNT) will be accretive to (FED)’s earnings in fiscal year 2018 starting June 1, 2017.

“We have a solid integration plan that we are in the process of validating with live data,” Graf said, adding, “I’ve looked at it now for a lot of months and ((TNT) (TNB)) has the best [cargo delivery] road network in Europe by far. When you layer all of our international businesses around the world coming into Europe at that efficient, productive, low-cost network, all of a sudden you start multiplying the benefits in there. They’re very high.”

(FED) Chairman, President & (CEO) Fred Smith said that “2 plus 2 equals 7, so to speak” in (FED)’s €4.4 billion/$4.9 billion purchase of (TNT) (TNB), the largest acquisition in (FED)’s history.

(FED) Executive VP Market Development & Corporate Communications, Mike Glenn said (TNT)’s “culture is very, very similar to ours,” which he predicted will help smooth the integration process.

Glenn said (FED) is aware of (TNT)’s strong brand recognition in parts of Europe and will be strategic in transitioning to the FedEx (FED) brand. “There are certain countries where the "(TNT)" brand is quite strong and actually has a higher level of awareness than the FedEx (FED) brand,” he explained. “There are other countries where the (FED) brand is stronger, there are other countries where they’re approximately the same, and we have a brand-transition scenario for all three of those. So it will take us some time, but we’re going to be patient to make sure that we make these changes at the right time, because candidly we want to leverage the strength of the (TNT) brand during the integration.”

757-222 (26709, N774FD; 28145, N799FD) ferried Victorville to Singapore XSP and to Mobile (BFM) for cargo conversion. 3 767-3S2Fs (42722, N135FE; 43550, N134FE; 61206, N137FE), 43550, ex-(N5511V); and MD-11F (48757, N68091), ex-(PH-MCU) deliveries.

August 2016: News Itwem A-1: According to FAPA.aero, FedEx (FED) hired 46 pilots (FC) in July and 214 (FC) year-to-date. (FED) is projected to hire 360 (FC) during 2016.

News Item A-2: 757-222F (26677, N782FD) converted to freighter by (SASCO) Singapore. 2 767-3S2F (43538, N139FE "Spencer;" 43541, N140FE), deliveries.

December 2016: FedEx Corporation has posted a consolidated net profit of +$700 million for its (FY) 2017 2nd quarter ended November 30, up +1.3% from +$691 million net income in (FED)’s (FY) 2016 2nd quarter. 2nd-quarter revenue for (FED) was $14.9 billion, up +19.9% year-over-year (YOY) from +$12.5 billion; consolidated operating expenses totaled $13.8 billion, up +21.6% (YOY) over $11.3 billion in (FED)’s fiscal (2Q) 2016.

(FED)’s consolidated operating income for the quarter was $1.2 billion, up +2.6% (YOY).

Fed Ex (FED) said its year-over-year operating income gain came primarily from the inclusion of (TNT) Express (TNB) in its consolidated total, as well as increased base rates and “ongoing cost efficiencies” at FedEx Express (FED). Expenses associated with the company’s integration of (TNT) Express (TNB), combined with lower operating income at FedEx (FED) Ground and FedEx (FED) Freight, offset the income result for the quarter, the company said.

(FED) completed its acquisition of Dutch courier company (TNB) in May 2016. “(FED) increased revenues and operating income despite continued low growth rates in the global economy,” FedEx Corporation Chairman, President & (CEO) Frederick Smith said, adding the integration of (TNT) Express (TNB) was proceeding smoothly and according to plan.

FedEx Express (FED), the company’s airline unit, reported fiscal 2nd-quarter revenue of $6.7 billion, a +2.3% rise over $6.6 billion the segment reported in the (FY) 2016 2nd quarter. Total package revenue was $5.3 billion, up +2% (YOY); total freight revenue was $1 billion, up +5.5% (YOY). Operating expenses for the segment totaled $6.1 billion, up +2.4% (YOY); operating income came to $636 million, up +2.3% (YOY). The segment’s operating margin for the quarter remained flat (YOY) at 9.4%.

January 2017: The FedEx Corporation has named longtime company executive David Cunningham President & (CEO) of FedEx Express (FED), the cargo delivery company’s airline arm and largest operating unit.

David Cunningham, who previously was (FED)’s (COO) & President International, replaces David Bronczek in (FED)'s (CEO) role. David Bronczek has been promoted to President & (COO) of the FedEx Corporation and will be 1 of 5 FedEx executives reporting directly to FedEx Chairman & (CEO) Fred Smith. David Bronczek has served as FedEx Express (FED) President & (CEO) for the past 17 years. He was also the (IATA) Board Chairman from June 2010 to June 2011.

David Cunningham, who has been with FedEx since 1982, previously was the Regional President of FedEx Express (FED)’s Asia Pacific division, a role he held for 15 years until 2014. As President & (CEO) of FedEx Express (FED), he will also oversee (TNT) Express ((TNB), the Netherlands-based expedited delivery company FedEx acquired for €4.4 billion/$4.9 billion in May 2016.

February 2017: FedEx Express (FED), the airline arm of Memphis-based FedEx Corporation, and the United States Postal Service (USPS) have extended a contract by +4 years under which FedEx (FED) provides express air transport services for the (USPS).

The contract, initiated in 2013 and originally set to expire in 2020, will now be in effect through September 2024. Under the contract, (FED) provides airport-to-airport transportation for (USPS)’s “priority mail express” and “priority mail” products within the USA.

According to FedEx (FED), the modified contract is expected to generate $1.5 billion in annual revenue for (FED).

FedEx Corporation President & (COO) David Bronczek said (FED) is able to provide “operational reliability and flexibility” to the (USPS).

777-FHT (38969, N842FD; 39286, N843FD), ex-(OO-TSA & OO-TSB) deliveries.

March 2017: 767-3S2F (42726, N144FE) and 777-FHT (37138, N844FD), ferried New Iberia (ARA) to Memphis for entry into service.

May 2017: 767-3S2F (43551, N146FE "Charity") and Cessna 208B (0226, N896FE), ex-(C-FEXY) deliveries.

June 2017: FedEx Corporation posted $3 billion in consolidated net profit for fiscal 2017, up +64.7% from the company’s +$1.8 billion net profit in fiscal 2016.

FedEx (FED) attributed its results to higher base rates, increased volume, continued cost management at FedEx Express (FED) and the inclusion of full-year results for Dutch courier company (TNT) Express (TNB), which FedEx acquired in May 2016, 6 days before the end of its 2016 fiscal year.

The results were partially offset by integration expenses involving (TNT) Express (TNB), combined with restructuring expenses and network expansion costs at FedEx Ground. “Investments to modernize our airplane fleet and expand our FedEx Ground capacity are supporting our strong earnings growth,” FedEx Executive VP & (CFO) Alan Graf, Jr said. “We are very optimistic about fiscal 2018.”

Fedex Express’s fiscal year ended May 31. The company took delivery of 14 new Boeing 767-300F freighters during its 2017 fiscal year.

(FED)’s consolidated revenue for fiscal 2017 totaled $60.3 billion, up +19.8% over $50.4 billion in consolidated fiscal 2016 revenue. Total consolidated operating expenses were $55.3 billion, up +16.9% year-over-year (YOY). The company reported consolidated operating income of $5 billion for fiscal 2017, up +63.7% (YOY).

(FED), the company’s airline unit, reported full-year revenue of +$27.4 billion, a +3.4% increase over $26.5 billion in fiscal 2016. Total package revenue was $21.8 billion, up +3.4% (YOY); total freight revenue was $4.1 billion, up 3.9% (YOY). Operating expenses for the segment totaled $24.7 billion, up +3.1% (YOY); operating income was $2.7 billion, up +6.3%. The segment’s (FY) 2017 operating margin rose +0.3 point (YOY) to 9.8%.

(TNT) Express (TNB) reported $7.4 billion in full-year revenue, with full-year expenses totaling $7.3 billion, resulting in $84 million in operating income for fiscal 2017 and an operating margin of 1.1%.

July 2017: 757-2B7F (27148) transferred to Federal Express Canada.

September 2017: News Item A-1: FedEx Corporation estimates it took a $300 million hit from the late June cyberattack that started by targeting Ukrainian companies and spread globally, particularly affecting FedEx (FED) subsidiary (TNT) Express (TNB). The June attack came just weeks after (FED) formally combined its FedEx Express airline unit and Netherlands-based (TNT) Express (TNB) under 1 operating segment, and (FED) officials conceded the company is still recovering from the attack nearly 3 months later.

News Item A-2: "FedEx’s Fred Smith puts e-Commerce in Perspective"
by Aaron Karp in AirKarp, September 2017, 2017.

The e-commerce revolution, which is changing the shape of express cargo delivery, is not quite as straightforward as many people may think and should be kept in perspective, according to FedEx Corporation Chairman & (CEO) Fred Smith.

Smith invented the concept of express delivery and has been at the forefront of every evolution of the business since founding FedEx in the early 1970s. FedEx and rival (UPS) have both had to adjust to retail becoming more and more digital, with home shipments of products ordered online making up a growing percentage of the express carriers’ deliveries.

But the notion that there is an inexorable march toward e-commerce dominating retail is not borne out by analysis, Smith told analysts. As he pointed out, Amazon (AZO) (which has been at the leading edge of the e-commerce revolution) is itself increasingly experimenting with “brick-and-mortar” stores, most notably with its recent purchase of grocery chain "Whole Foods."

“People like to come and see the produce” at grocery stores, Smith said, later adding, “I think you’re going to see e-tailers become more brick-and-mortar and I think you’re going to see brick-and-mortar become more e-tailers.”

Smith urges perspective regarding e-commerce. “E-commerce is not going to eliminate the [brick-and-mortar] retailing sector,” he said, noting that e-commerce now comprises just 10% of the retail business. “It’s about 10%,” he said. “It’s certainly going to grow as a percentage, but will it be half? I doubt it. Will it be 20% per day? 18% per day? Who knows?”

In other words, even if e-commerce doubles, brick-and-mortar will still make up 80% of retail, which provides a clue to why Amazon (AZO) is getting into the brick-and-mortar business with "Whole Foods" and even experimenting with building and owning physical books stores (Amazon, remember, made its initial mark as an online book retailer).

“The vast majority of USA houses, even with the growth of e-commerce, do not get an e-commerce delivery per day,” Smith said. He also noted that, despite the perception, most e-commerce is not express delivery: “E-commerce has basically been made possible by the postal service’s mail deliverer, by delivery routes and mail personnel putting small e-commerce packages in with the mail and delivering them for very low rates.” Smith added, “So all of this is not quite as pristine as a lot of people would like to think about it, and I think over the next few years there are a lot of moving parts here and you have to be flexible and nimble to be able to deal with the market as it evolves, because you’re not going to be able to predict exactly how it’s going to evolve, that I promise you.”

Smith additionally said that companies like Amazon (which last year launched its own Prime Air Boeing 767F freighter network and is building a major air hub at Cincinnati/Northern Kentucky International Airport (might be able “to develop greater route densities” in their own networks, but will be hard-pressed to match the far-flung reach of FedEx (FED)’s global network.

“This is a very complex business,” Smith said. “We are a transportation company that serves 220 countries around the world. I don’t know how many billion people or how many millions of businesses, but it’s substantial. And through our transportation networks, each of those businesses can be connected one to the other. So that formula is "N squared." I mean, there are literally billions and billions of potential combinations.”

Fleet:
(definitions)

Click below for photos:
FED-747-200F.jpg
FED-757-200SF - 2012-01
FED-757-AUG08
FED-767-300F - 2012-12
FED-767-300F 777F - 2011-12
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FED-777-FS2 975-37733 N862FD - 2017-06.jpg
FED-777-FS2-2014-07
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FED-777F-2011-02
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FED-A300F AT VICTORVILLE CA
FED-A300F4-605R
FED-A380-800F ORDER CANCELLED
FED-A380-800F-ORDER CANCELLED
FED-A380F ORDER CANCELLED
FED-A380F-MAY06
FED-MD-10-10F
FED-MD-11
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FED-MD-11F-2011-02
FED-MD-11F-3

October 2017:

0 727-100F (JT8D-7B HK) (727-22F: 261-18872, /66 N186FE "CLAYTON"). 18 SCRAPPED. 18265; 19080; SCRAPPED 2003-02. 18286 DONATED 2003-07. 19086 PARTED OUT 2003-05. 19141 DONATED 2004-03. 19087; & 19509; DONATED 2004-06. 19527 DONATED 2003-12. 19853 DONATED 2004-11. 19199; DONATED 2006-01. 19855; DONATED 2006-04. 19143; DONATED 2006-05. 19202; DONATED 2006-06. 18867; DONATED 2006-08. 19142; 19154; SCRAPPED AT SEATTLE 2006-09. 19081; 19084; DONATED 2007-03; 18872; 19085; DONATED 2007-04; & 18865, 19082; & 19147; DONATED 2007-05. FREIGHTER.

00 727-200 (JT8D HK) (727-233F: 20936, N254FE, STORED 2009-07; 1578-22035, N270FE DONATED TO SOUTHERN UNIVERSITY (SHREVEPORT); 1803-22623, /82 N286FE "CHARLSI," (727-247F: 1249-21327, /77 N233FE "MONIKA;" 727-225F: 1306-21449, /77 N467FE, "JOY") (18289; 19852 RETIRED 2000-10). (N497FE DESTROYED W/O 2002-07). 21328 LST (BWL) 2005-06. 21395; & 21670; DONATED 2007-08. 22037; DONATED 2007-09. 21394; WFU VICTORVILLE 2007-12. 21480; WFU AT VICTORVILLE & PARTED OUT 2009-02. 20933; 2009-04. 21102; WFU AT VICTORVILLE 2009-04. 22068; DONATED TO MID AMERICA TRANSPORTATION & AVIATION MUSEUM 2009-05; 20978; WFU AT VICTORVILLE 2009-06; 20936; & 21463; WFU & STORED 2009-07; 21102; SOLD 2009-09. 21178; NOSE/WINGS/TAIL DONATED TO SANTA MONICA MUSEUM OF FLYING. 21327; RF (BWL) 2010-04. 21330; RF MORNINGSTAR 2010-07. 5 APLS RETIRED BY 2012-06. WILL RETIRE 21 IN YEAR ENDING 2013-06. 20935; TO SACRAMENTO METROPOLITAN FIRE DISTRICT; 21330; DONATED TO USAERO TECH 2013-06. 21492; TO MINNESOTA ASSOC OF WOMEN IN AVIATION 2013-07. 727 FLEET OFFICIALLY RETIRED. CONDUCTED ITS LAST 727 DOMESTIC FLIGHT IN JUNE 2013. FREIGHTER.

0 747-230F (JT9D-7A) (294-21220, 299-21221), (TLS) WET-LSD 1998-12. RTND. FREIGHTER.

0 747-283BF (JT9D) (358-21575), (PAO) WET-LSD 1998-12. RTND. FREIGHTER.

0 747-400F, (TLS) WET-LSD. 2 RTND. FREIGHTER.

1 757-2YO (25240, N930FD), EX-(N240MQ). FREIGHTER.

6 757-2B7F (525-27122, N901FD; 540-27124, N903FD, 2008-07 AFTER CONV; 546-27145, N905FD,2009-09 AFTER CONV; 27147, N976FD; 564-27148, N906FD, 2008-10; 584-27198, N907FD, 2009-04 AFTER CONV), BF WILMINGTON TRUST 2007-03. FREIGHTER.

5 757-2B7 (534-27123, N927UW 2009-09; 27124, N903FD "MAKALYA;" 544-27144, N929UW, 2009-09; 27198, N907FD; 586-27199, N908FD, 2009-12 AFTER CONV; 589-27200, N934UW, 2009-07), BF (BBB). 27198; LST MORNINGSTAR EXPRESS. 27148 TRANSFERRED TO FEDEXPRESS CANADA 2017-07. FREIGHTER.

2 757-2G5 (23929, N943FD, 2010-08; 24497, N497EA, 2010-06). BF EAST TRUST. CONV TO F BY SASCO 2010-09. FREIGHTER.

1 757-2Q8 (438-24965, N993FD), EX-(SU-BPY).

3 757-2T7 (22780, N935FD "DESIREE;" 23293, N936FD, 2010-04; 132-23895, N937NA), BF (TCI) 2009-05.

3 757-2YO (25240, N930FD; 25268, N961FD, 2010-11; 26151, N973FD). FREIGHTER.

1 757-200SF (N940FD), 2012-01 50TH 757 CONV TO F, BY ST AEROSPACE.

2 757-204 (514-26266, N923FD "RAQUEL" 2009-08; 538-26267, N924FD, 2009-03), BF (ILF). FREIGHTER.

1 757-204 (604-27238, N925FD), BF SOJITZ LSG 2009-06.

2 757-21BF (200-24330, N933FD 2009-09; 24774, N957FD "GABRIELLA"), AFTER CONV BY SASCO. FREIGHTER.

17 757-222F (24743, N770FD; 24872, N519UA; 24891, N68087; 25223, N539UA; 26677, N782FD; 26678, N570UA; 26681, N571UA; 26682, N572UA; 26685, N787FD; 26694, N578UA; 26698, N793FD; 26701, N794FD; 26706, N795FD; 26709, N774FD, 2016-06; 26710, N796FD; 28144, N798FD, 2014-02; 28145, N799FD, 2016-06). FREIGHTER.

2 757-225 (114-22612, N226CL, 2009-09; 155-22691, N941FD, 2009-06), BF (TCI).

57 +78 ORDERS 757-23AF (209-24289, N920FD "SOPHIA" 2009-05 AFTER CONV; 212-24290, N918FD "DEXTER" 2009-04; 215-24291, N917FD, 2009-08 AFTER CONV; 24292, N938FD, 2012-07; 220-24293, N922FD, 2009-10 AFTER CONV; 259-24636, N916FD "EVAN" 2008-12 AFTER CONV; 333-24924, N921FD, 2009-06; 510-25490, N994FD "LINDORA" 2008-05), BF (AWW), TO BE CONV TO F. FREIGHTER.

1 757-231 (28483, N987FD), CONVERTED 2014-02. FREIGHTER.

2 757-232 (22909, N619DL; 22912, N992FD, 2011-10), BF VX CAPITAL, 2011-01.

1 757-236F (RB211-535E4) (24371, N579SH, BF (PALS) 2011-10. FREIGHTER.

4 757-236F (RB211-535E4) (25053, N253CL, 2010-08; 362-25054, N910FD, 2009-05 AFTER CONV; 25056, N948FD "ANISSA;" 25060, N949FD, EX-(G-BPEE)), EX-(G-OOOK). FREIGHTER.

6 757-236F (RB211-535E4) (24118, N630SH; 174-24120, N915FD, REDELIVERED 2009-01; 24772, N940FD, BF IAI V INC 2010-09; 25133, N959FD, 2012-07; 25592, N979FD, CONV 2013-12 BY SASCO, SINGAPORE; 25806, N950FD). FREIGHTER.

1 757-23AF (24528, N939FD), CONV TO F BY SASCO SINGAPORE. 2011-10. FREIGHTER.

1 757-258F (27622, N965FD), 2011-11. FREIGHTER.

1 757-27BF (178-24137, N916FD), BF TEL AVIV LLC 2007-10. FREIGHTER.

4 757-28AF (162-24017, N913FD, 2009-11 AFTER CONV; 204-24260, N912FD, 2009-05; 208-24367, N914FD, 2010-04; 28164, N969FD; 26260, N912FD "DEMIR"), BF (ILF).

1 767-2S2F (42706, N101FE "HANNAH" 2013-07. FREIGHTER.

2 +25 ORDERS 767-3S2F (CF6-80C2) (42706, N101FE "HANNAH;" 42708, N104FE), 2013-12. FREIGHTER:

19 767-300F (CF6-80C2) (42728, N148FE "LOIS;" 63094, N147FE), 2017-07. FREIGHTER:

50/50 ORDERS (2018-02) 767-300ERF (CF6-80C2), FREIGHTER.

10 767-3S2F (42718, N126FE "JOSIE;" 42722, N135FE, 2016-06; 42726, N144FE, 2017-02; 43538, N139FE "SPENCER" 2016-08; 43541, N140FE 2016-08; 43548, N129FE, 2015-11; 43550, N134FE, 2016-06; 43551, N146FE "CHARITY" 2017-05; 44380, N120FE "BRIANNA, 2015-05; 61206, N137FE, 2016-06), 43550, EX-(N5511V). FREIGHTER.

3 777-FHT (GE90-110B1) (37138, N844FD; 38969, N842FD; 39286, N843FD), EX-(OO-TSA & OO-TSB) 2017-02. FREIGHTER.

12 +16/13 ORDERS 777-FS2 (GE90-110B1) (813-37721, /09 N850FD "SAAD;" 829-37724, /09 N853FD "TALON;" 834-37722, N851FD "TRISTIN;" 848-37723, N852FD "JENNA;" 37726, N855FD "ARIANA;" 884-37727, /10 N856FD "ZOE;" 886-37728, /10 N857FD "BAYLEE" 890-37725, /10 N845FD "FAITH;" 892-37726, N855FD "ERICH;" 37729 N858FD; 38707, N892FD "FEDEX PANDA EXPRESS" - - SEE PHOTO - - "FED-2011-12 - PANDA EXPRESS;" 41064, N885FD "MAIREAD" 2011-10), FREIGHTER.

16 ORDERS (2020-02) 777F:

2 777-F28 (GE90-110B1) (718-32967 /08 N880FD; 827-32969, /09 N882FD "LEEANNA"), BF (AFA) 2010-03. FREIGHTER.

19 DC-10-10 (CF6-6K), EX-(AAL), (CF6-6D), EX-(UAL), (33-36705, N68058; 155-46624 "RASIK;" 156-46601 "JOEY;" 140-46621 "JOEL" N387FE). 46519; 46522; 46613; 46703; 46906; SCRAPPED 2002-06. 46930, N559FE; 46947, N562FE; 249-46948, N563FE; 46996, N565FE; 294-47827, N568FE; N47828, N569FE. 36705; 47810; SCRAPPED 2009-01. TO FREIGHTER.

11 DC-10-10F (26-46608, N370FE) (76-46615, N381FE; 46636, N360FE, 2014-08; 270-46996, N565FE, 2004-11). FREIGHTER.

7 DC-10-30 (CF6-50C2) (326-47835, /80 N320FE "MAURA;" 47836, N321FE, 2012-06; 215-47908, /75 N322FE "GERALD;" 443-48413, N315FE, 2009-09). 47835; 47836; 48298; 48299; 48313; WFU AT VICTORVILLE 2009-04 AND PARTED OUT. 46800; ST PROJECT ORBIS (ORS) 2010-03. 47835; PURCHASED OFF LEASE 2012-01. FREIGHTER.

1 DC-10-30F (302-47811, N323FE; 303-47812, N1853U; 312-47813, N1854U), (UAL) LSD 2001-02. 47811; 47813; RTND 2006-02. FREIGHTER.

51 ORDERS MD-10-10F:

18 MD-10-10F (6-46601, N365FE, 2006-09; 8-46602, N366FE, CONVTD 2007-12; 46617; 25-46607, N369FE, 2008-01; 208-46629, N395FE 2006-02; 46622; 47829 CONV TO F 2003-07) (6-46601, N365FE; 415-46605, N367FE; 46616; 46938; 203-46939, N357FE, CONV 2004-01; 46628, N394FE; 208-46629, N395FE, 2006-12; 249-46948, N563FE, 2006-06; 47803; CONV TO F 2003-12). 46619 CONV 2004-07. 47804, N68050; 273-46994, N567FE, 2006-12; 145-47805, N68051, 2007-09; 148-47806, N68052, 2007-10; 173-47807, N68053, 2009-08; 177-47808, N68054, 2006-06; 194-47810, N68056, 2006-06; 294-47827, N568FE, 2006-07; 47828, N569FE; 48264, N68057; CONV TO F 2004-08. 46710, N556FE; & 47830, N571FE; CONV TO F 2006-01. 47827 DBER W/O AT MEMPHIS 2006-07. 257-46992, N304FE, CONV 2007-03; 62-46708, N554FE, CONV & REDLVRD 2007-05. 46996; 47810; STORED VICTORVILLE 2009-11. 46608; 46612; STORED VICTORVILLE 2010-01. 46994; WFU VICTORVILLE 2010-02. TO GROUND 6 MD-10FS 2012-06. 1 MD-10F RETIRED 2015-06. FREIGHTER.

8 MD-10-30F (103-46801, N302FE, 2006-01; 277-46835, N317FE REDELIVERED 2009-06; 317-47820, N317FE, 2009-05; 409-48287, N306FE, 2008-04; 416-48297, N308FE, 2008-06; 442-48312, N314FE, REDELIVERED 2009-11; 444-48314, /88 N316FE "BRANDON"), 2-MAN CREW CERT PRG. FREIGHTER.

30 MD-11F (CF6-80C2) (483-48436, /92 N584FE "JEFFREY WELLINGTON;" 535-48554, /93 N596FE; 48769, N573FE "TOM"). 48445 CONV TO F 2004-07. 460-48445, N626FE; WET-LST (MTH) 2004-09. 48476, N522FE; 48478, N521FE; 536-48479, N523FE; 538-48480, N534FE; 560-48600, /94 N526FE W/O IN CRASH (ACCDT) 2009-03; 562-48601, N527FE; CONVERTED & REDELIVERED 2006-09. FREIGHTER.

4 MD-11F (459-48444, N644FE; 463-48446, N645FE; 502-48485, 9M-TGR; 509-48486, 9M-TGQ), BF TRANSMILE (TML) 2011-01, FREIGHTER.

1 MD-11 (CF6-80C2) (48447, N628FE), EX-(CSR) 2005-01. TO FREIGHTER.

1 MD-11 (CF6-80C2D1F) (519-48469, N577FE), BF (CHI) 2004-10. TO FREIGHTER.

3 MD-11F (PW4462) (48458; 48470; 48471), EX-(CHI), 1 EX-(GAX), 48445 WET-LST (MTH) 2004-09. CONV TO F BY (ARP). FREIGHTER.

8 MD-11F (CF6-80C2D1F) (510-48476, N522FE; 514-48478, N521FE; 536-48479, N523FE, 2006-09; 538-48480, "NANA" N524FE; 560-48600, /94 N526FE, 2006-07 - - W/O & DESTROYED - - SEE ACCDT - - 2009-03; 562-48601, N527FE; 605-48623; 622-48624; 642-48465), BF (DAL) 2004-03. 48601; CONV TO F 2006-08. 48478; 48479; 48480; CONV TO F 2006-09. 48476; 2006-10. 7 MD-11 AIRPLANES RETIRED 2015-06. FFREIGHTER.

3 MD-11 (CF6-80C2D1F) (486-48499, N574FE; 493-48500, N575FE, 2006-02; 513-48501, N576FE, 2006-01), EX-(VAR), BF (GEF) 2004-10. TO FREIGHTER.

3 MD-11F (CF6-80C2D1F) (604-48754, /96 N618FE "JUSTIN;" 48757, N68091, EX-(PH-MCU) 2016-06), EX-(AAL). FREIGHTER.

3 MD-11ERF (48753, N625FE "RONYN" 2012-07. EX-(OH-LGG); 613-48755, N573FE; 603-48769, N572FE), EX-(PT-MSH; PT-MSJ). FREIGHTER.

00 ORDERS MD-11, EX-(SWS), CANCELED 15:

1 A300B4-203F (219, N474AS), (INL) LSD 2000-12. FREIGHTER.

2 A300B4-605R (PW4158) (713, N732FD, 2007-09; 715, N733FD, 2007-10). FREIGHTER.

3 A300B4-605R (PW4158) (873, N687FE, 2007-02; 874, N688FE, 2007-03; 878, N692FE "GABRIEL" (FINAL PRODUCTION A300) 2007-07), FREIGHTER.

4 A300B4-622F (PW4158) (358, /85 N716FD 2003-02; 361, /85 N717FD 2002-06, CONV TO F 2003-03; 479, /88 N722FD 2002-08; 543, /90 N723FD, 2002-10), EX-(INL). FREIGHTER.

4 A300B4-622F (PW4158) (365, /85 N718FD; 388, /86 N719FD; 417, /87 N720FD, 2003-09; 477, /88 N721FD), EX-(KAL), (EADS) CONV TO F. FREIGHTER.

3 A300B4-622F (PW4158) (530, N724FD 2005-04; 559, N740FD 2005-10; 657, N729FD, 2005-04), BF (AFIS), CONV TO F. FREIGHTER.

1 A300B4-622R (PW4158) (536, N749FD, 2007-10), BF (ICE) 2006-07. FREIGHTER.

1 A300BR-622RF (PW4158) (555, N750FD), CONV 2009-04. BF (AWW) 2008-11. FREIGHTER.

4 A300B4-622RF (PW4158) (572, N725FD, 2005-12, CVTD 2006-06; 575, N726FD, 2006-03, CVTD 2006-11; 579, N727FD, 2006-02; 581, N728FD, 2006-02), BF (EGP) 2005-07. CONV TO F AT DRESDEN. FREIGHTER.

3 A300B4-622RF (PW4158) (611, N741FD; 613, N742FD "BRITTON;" 625, N751FD "TEY"), CONV TO F. FREIGHTER.

1 A300B4-622R (PW4158) (630, /92 N743FD), BF (QTA) 2008-02. TO BE CONVERTED TO FREIGHTER.

1 A300B4-622R (PW4158) (633, N748FD), BF (AWW) 2006-02. CONV TO F 2007-04. FREIGHTER.

3 A300B4-622R (PW4158) (664, N744FD "GRACE;" 668, N745FD "VALE," CONV TO F 2008-05; 688, N746FD, CONV TO F 2009-07). FREIGHTER.

2 A300B4-622R (PW4158) (709, N731FD; 713, N732FD), BF POLARIS 2006-08. 709 CONVERTED 2007-07. TO FREIGHTER.

36 A300F4-605R (CF6-80C02A5) (790, /98 N676FE "JADE," 791, /98 N677FE "CLIFFORD," 792, /98 N678FE "ALLISON;" 793, /98 N679FE "TY;" 794, /98 N680FE "TIERNEY;" 802, /99 N684FE "DANIEL;" 804, /99 N686FE "ALEX"). FREIGHTER.

4 A300F4-605F (CF6-80C02A5) (874, N688FE; 875, N689FE, 2007-06; 876, N690FE, 2007-04; 877, N691FE, 2007-06). FREIGHTER.

00 A310-203F (CF6-80A3) (248, /83 N428FE "KRISTINA;" 283, /83 N443FE "KATELIN;" 297, /83 N445FE "NICHOLAS"), MAINT BY (P&W), CHESHIRE, CT. 241; 254; 273; 349; 353; 359; 360; 400; STORED VICTORVILLE 2009-09 AND PARTED OUT. 283; STILL IN SVC 2009-12. 356, N410FE RTS 2010-07 AFTER STORAGE. GROUNDS 18 A310-200F 2012-06. ALL RETIRED 2016-04. MOVED TO VICT0RVILLE FREIGHTER.

0 A310-203F (CF6-80A3) (316, /84 N431FE; 326, /84 N432FE 2004-10; 335, /84 N433FE, CONV TO F 2004-07; 346, N422FE; 355, /84 N434FE; 359, N411FE; 369, /85 N435FE; 397, N413FE; 454, /88 N436FE, 2004-05), EX-(AFA), (EADS) CONV TO F. 326; 335; 355; 397; ALL (WFU) AT VICTORVILLE 2009-05 AND PARTED OUT. 359 RTS 2010-08. FREIGHTER.

0 A310-221F (JT9D-7R4E1) (224, N446FE), (WFU) AT VICTORVILLE 2010-02 AND PARTED OUT. FREIGHTER.

0 A310-222F (JT9D-7R4E1) (217, N449FE; 267, /83 N453FE, EX-(HEA); & 278, /83 N454FE, EX-(SUD); FOR CONV TO F. 217; 260; 313; ALL (WFU) AT VICTORVILLE AND PARTED OUT 2009-10. FREIGHTER.

0 A310-222F (JT9D-7R4E1) (318, /90 N456FE; 331, /84 N455FE), EX-(DJB)/(AFIS) 2001-01. ALL (WFU) AT VICTORVILLE AND PARTED OUT. FREIGHTER.

0 A310-222F (JT9D-7R4E1) (333, N417FE), REMOVED FROM STORAGE 2010-05. ALL (WFU) AT VICTORVILLE AND PARTED OUT. FREIGHTER.

0 A310-222F (JT9D-7R4E1) (339, N420FE; 346, N422FE), BOTH (WFU) AT VICTORVILLE 2009-05 AND PARTED OUT. FREIGHTER.

0 A310-222F (JT9D-7R4E1) (345, N419FE), (WFU) AT VICTORVILLE 2010-01. FREIGHTER.

1 A310-304F (552, N817FD), BF RGF HOLDINGS 2006-05. ALL (WFU) AT VICTORVILLE AND PARTED OUT. FREIGHTER.

0 A310-304F (593, N816FD), 2005-11. ALL (WFU) AT VICTORVILLE AND PARTED OUT. FREIGHTER.

0 A310-324F (PW4152) (439, F-OHPU; 449, N809FD, 2006-07), EX-(ARO), (452, /87 F-OHPY "SAMIR;" 456, N805FD "TOULOUSE;" 457, /88 N811FD "CHERAGA;" 458, /88 N806FD "MAYA;" 467, /88 N812FD "MELISSA NOOR DJIHANE"), EX-(KHZ), (492, N807FD, 2004-09), (EX-(TRX), BF (AFIS) 2004-10. (549, N101FD). 458 CONV TO F, 2005-07. 467 CONV TO F 2006-01. 439 CONV TO F 2006-05. 449; CONV TO F 2006-07. 452 CONV TO F 2006-08. 4 A310-300F AIRPLANES RETIRED 2015-06. ALL (WFU) AT VICTORVILLE AND PARTED OUT. FREIGHTER.

0 A310-324F (PW4152) (534, N814FD, 2006-12), EX-(API), BF RR AIRCRAFT MGMNT 2006-03. ALL (WFU) AT VICTORVILLE AND PARTED OUT. FREIGHTER.

0 A310-324 (PW4152) (500, N813FD), BF (RR) 2006-07. CONV BY 2007-01 TO FREIGHTER. ALL (WFU) AT VICTORVILLE AND PARTED OUT.

0 A310-324 (PW4152) (539, /90 N801FD "AMOS" 2000-10; 542, /90 N802FD), EX-(PNM), CONV TO F. ALL (WFU) AT VICTORVILLE AND PARTED OUT. FREIGHTER.

0 A310-324 (PW4152) (378, N853CH, 2004-12; 549, N101MP), (ILF) LSD. ALL (WFU) AT VICTORVILLE AND PARTED OUT. FREIGHTER.

0 A310-324 (PW4152) (589, N68096), BF (TBC) 2006-06. CONV TO FREIGHTER. ALL (WFU) AT VICTORVILLE AND PARTED OUT.

0 A310-324 (PW4152) (634, N68097), BF (TBC) 2006-04. CONV TO FREIGHTER. ALL (WFU) AT VICTORVILLE AND PARTED OUT.

00/00 ORDERS (2011-02) A380-862F (GP7277) (037; 053). FREIGHTER. 10/10 CANCELLED:

289 +12 ORDERS CESSNA CARAVAN 208B (PT6A-114A) (B0192 W/O 2000-10; 0226, N896FE, 2017-5), B0226, N896FE; TRANSFERRED TO (BWL) 2000-12. 0044, N944FE CRASHED W/O 2003-01. 0289, N791FE W/0 2003-10. 482 LST (BWL) 2005-10. 248 W/O & DESTROYED 2005-12. 248; PARTED OUT 2006-09. 223; PARTED OUT 2008-12. FREIGHTER.

4 F27-500F (DART 552-7R) (10371; 10372; 10383; 10464; ST EXECUTIVE JET SUPPORT 2005-09). 10371; 10383; 10464; ST 19TH HOLE CORP 2005-10. 10471 ST NPTC INC 2005-12. 10467 ST NPTC 2006-02. 10470; WFU; & 10615; SOLD 2006-11. 10658; SOLD IN PANAMA 2007-04. FREIGHTER.

14 F27-600F (DART 532-7R). 10386; ST AIR PANAMA 2008-04. FREIGHTER.

11 SHORTS 360-300 (PT6A-67R), LYNRISE AIR LSD 1999-01, EMPIRE AIRWAYS OPS. (3742, N742CC). FREIGHTER.

00/000 ORDERS AYRES LOADMASTER LM200 (LHTEC CTP800) (DELAYED 12-18 MTHS TIL 2001-12), ALL 75/175 CANCELED 2001-07. FREIGHTER.

1 LOCKHEED HERCULES, (SFA) LSD 2000-10. FREIGHTER.

4 ATR 42-320 (PW121) (045, N424MMQ; 047, N47AE; 250, N251AE; 269, N269AT), EMPIRE OPS, 2003-10. FREIGHTER.

25 ATR 42-320 (PW121) (023, N908FX; 045, N911FX; 135, N923FX, 2004-06; 141, N141AE BF AMR 2004-12; 170*, N900FX; 172*, N901FX 2003-02; 175, N902FX, W/O IN ACCDT 2009-01; 177, N277AT, 2003-09; 179, N903FX; 180, N906FX, 2003-02; 186; 224, N814FX; 228, N426TE; 229, N815FX; 243, N246AE, 2004-08; 250, N913FX; 256, N817FX; 259, N904FX; 262, N918FX; 266, N919FX; 271, N905FX, 2003-02; 273, N271AT, 2004-10; 275, N909FX, 2003-07; 277, N910FX; 282, N282AT, 2004-09; 292, N813FX; 293*, N293AT, 2003-11; 310, N310DK 2004-09; 314, N916FX 2004-08; 319, N921FX 2004-05; 347, N816FX; 354, N351AT, 2004-02; 359, N819FX), EX-(CAL), TO CONV TO F, 2003-01. *EMPIRE OPS. 243; 273; 282; LST (HCA) 2005-05. 141; 310; LST (HCA) 2005-08. 135; LST (BRS) 2007-11. FREIGHTER.

3 ATR 72-202 (217, N721TE; 220, N810FX; 283, N811FX, 2005-06), EX-TRANSTATES. FREIGHTER.

18 ATR 72-202 (157, N414FX, 2005-08; 229, N815FX, 2005-08; 248, N820FX 2006-12; 253, N252AM 2006-12; 256, N817FX; 292, N813FX; 294, N818FX, 2006-01; 336, N800FX, 2010-06; 338, N801FX, 2010-06; 344, N802FX; 355, N355AT, 2013-06; 359, N819FX, 2006-01; 362, N803FX, 2010-06; 370, N804FX, 2010-06; 372, N805FX, 2010-06; 375, N630AS; 383, N807FX, 2010-06; 404, N812FX, 2005-06; 426, N426AT 2013-06), EX-(DLH) REGIONAL. EMPIRE AIR OPS. 229; ST (HCA) 2006-02. 294; XFR TO (HCA) 2006-10 AS (EI-FXI). 256 TO (HCA) 2007-08. FREIGHTER.

Management:
(definitions)

Click below for photos:
FED-1-FREDERICK SMITH-CHMN
FED-3-David Cunningham - 2017-01.jpg
FED-4-PAUL CASSEL - 2013-08
FED-5-Eddy Chan -2015-09.jpg
FED-9-HIDETAKA IKEDA - 2014-01

FREDERICK SMITH, CHAIRMAN, & CHIEF EXECUTIVE OFFICER (CEO) (FEDEX CORPORATION).

DAVID BRONCZEK, PRESIDENT & (CEO) (FEDEX CORPORATION) (2017-01).
January 2017: David Bronczek has served as FedEx Express (FED) President & (CEO) for the past 17 years. He was also the (IATA) Board Chairman from June 2010 to June 2011.

DAVID CUNNINGHAM, PRESIDENT FEDEX EXPRESS (FED) (2017-01).
January 2017: David Cunningham who has been with FedEx since 1982, previously was the Regional President of FedEx Express (FED)’s Asia Pacific division, a role he held for 15 years until 2014. As President & (CEO) of FedEx Express (FED), he will also oversee (TNT) Express ((TNB), the Netherlands-based expedited delivery company, FedEx acquired for €4.4 billion/$4.9 billion in May 2016.

TED WEISE, PRESIDENT & (CEO).

JUAN CENTO, PRESIDENT LATIN AMERICA & CARIBBEAN DIVISION (2000-06).

ROBERT ELLIOTT, PRESIDENT EUROPE, THE MIDDLE EAST, AFRICA & THE INDIAN SUBCONTINENT.

MICHAEL DRUCKER, PRESIDENT FEDERAL EXPRESS INTERNATIONAL & CHIEF OPERATING OFFICER (COO).

DAVID BINKS, REGIONAL PRESIDENT, FEDEX EXPRESS, EAST MIDLANDS AIRPORT (EMEA) (2014-01).

ALAN GRAF JR, EXECUTIVE VP & CHIEF FINANCIAL OFFICER (CFO).

ROBERT CARTER, EXECUTIVE VP INFORMATION TECHNOLOGY (IT) & CHIEF INFORMATION OFFICER (CIO) (2000-03).

DAVID REBHOLZ, EXECUTIVE VP OPERATIONS & SYSTEMS SUPPORT.

KENNETH MASTERSON, EXECUTIVE VP GENERAL COUNSEL.

JAMES PARKER, EXECUTIVE VP AIR OPERATIONS.

RAJ SUBRAMANIAM, EXECUTIVE VP GLOBAL STRATEGY, COMMUNICATIONS & MARKETING.

MIKE GLENN, EXECUTIVE VP MARKET DEVELOPMENT & CORPORATE COMMUNICATIONS.

PAUL CASSEL, SENIOR VP FLIGHT OPERATIONS.

EDMOND CLARK, SENIOR VP OPERATIONS & ENGINEERING.

TRACY SCHMIDT, SENIOR VP FINANCE & CHIEF FINANCIAL OFFICER (CFO).

WILLIAM LOGUE, SENIOR VP AIR GROUND & FREIGHT SERVICES.

LEONARD FEILER, SENIOR VP CENTRAL SUPPORT SERVICES.

MICHAEL HOLT, SENIOR VP EUROPEAN OPERATIONS (2014-01)..

DIANNE STORELY, SENIOR VP CUSTOMER SERVICE.

LARRY BROWN, SENIOR VP PERSONNEL.

MICHAEL BIELSKIS, COMMUNICATIONS ADVISOR.

PEREIRA FILHO, VP LATIN AMERICA & THE CARIBBEAN, ALSO PRESIDENT FEDEX BRAZIL (2012-07).

CAPTAIN BRUCE CHEEVER, VP FLIGHT OPERATIONS (bbvcheever@fedex.com).

MARK BLAIR, VP ENGINEERING.

ROBERT RACHOR, VP PLANNING & PERFORMANCE (OPERATIONS DIVISION).

MICHAEL CUKOR, VP BASE MAINTENANCE (MEMEAFX) (mbcukor@fedex.com) (1999-09).

DAVE SLONIM, VP AIRCRAFT LINE MAINTENANCE (MEMEAFX)(dcslonim@fedex.com) (1998-08).

MS MARY MCDANIEL, VP AIRCRAFT MATERIEL.

CARL ASMUS, VP SUPPLY CHAIN SOLUTIONS & MARKET DEVELOPMENT.

CAPTAIN JOHN LEWIS, MANAGING DIRECTOR SYSTEM CHIEF PILOT.

CAPTAIN EDWARD LYONS, MANAGING DIRECTOR FLIGHT SAFETY & REGULATORY COMPLIANCE, (ealyons@fedex.com).

CAPTAIN MIGUEL PADRON, MANAGING DIRECTOR FLIGHT STANDARDS & TECHNICAL TRAINING.

JOSEPH SOLURI, MANAGING DIRECTOR QUALITY ASSURANCE (QA) (1998-07).

ED KUDER, MANAGING DIRECTOR VENDOR MAINTENANCE OPERATIONS.

DENNIS MARSHALL, MANAGING DIRECTOR AIRCRAFT MAINTENANCE (MEM)/(LAX).

JIM CASBARRO, MANAGING DIRECTOR QUALITY ASSURANCE (QA)/MAINTENANCE & ENGINEERING (1998-10), (17273@fedex.com) (MEMEAFX) & VP STRATEGIC SOURCING, QUALITY ASSURANCE (QA).

DAVE SUTTON, MANAGING DIRECTOR AIRCRAFT DEVELOPMENT, ACQUISITIONS, & SALES.

PAUL BEMBROOK, MANAGING DIRECTOR PACIFIC RIM MAINTENANCE.

TONY BASHAM, MANAGING DIRECTOR ATLANTIC RIM MAINTENANCE.

JOE SHALLCROSS, MANAGING DIRECTOR MEMPHIS LINE MAINTENANCE (1997-04).

JEFF CAMPBELL, MANAGING DIRECTOR (AOD) CATEGORY MAINTENANCE (1997-04).

MARK YERGER, MANAGING DIRECTOR AIRCRAFT ENGINEERING & TECHNICAL PLANNING (MEMEAFX). (mdyerger@fedex.com) (1997-08).

GREGORY BULLER, MANAGING DIRECTOR FLEET RELIABILITY & MAINTENANCE SUPPORT.

FRED HUMMEL, MANAGING DIRECTOR AIRCRAFT DATA SYSTEMS.

SCOTT OGDEN, MANAGING DIRECTOR MAINTENANCE PLANNING CONTROL & PERFORMANCE (MEMLCFX) (ssogden@fedex.com) (1998-10).

BOBBI WELLS, MANAGING DIRECTOR AIR OPERATIONS PLANNING & ANALYSIS.

RICHARD SMITH, MANAGING DIRECTOR LIFE SCIENCES & SPECIALTY SERVICES.

CARY BLANCHETT, MANAGING ATTORNEY, BUSINESS TRANSACTIONS.

JOSHUA KENDRICK, MANAGING DIRECTOR FLIGHT TECHNICAL, (FED) FLIGHT OPERATIONS.

JIM CLARKE, MANAGING DIECTOR MATERIEL, PARTS ALLOCATION % DEMAND FULFILLMENT.

KOFI AKUFFO APPAH, MANAGING DIRECTOR MATERIEL, SOURCING, PLANNING & ANALYTICS.

HIDETAKA IKEDA, SENIOR MANAGER FIELD AIRCRAFT MAINTENANCE.

SPENCER BENNETT, SENIOR MANAGER MAINTENANCE TECHNICAL TRAINING.

PETER WHITE, MANAGER AIR OPERATIONS TECHNOLOGY.

ALAN RAY, MANAGER AIR OPERATIONS (awray@fedex.com).

LES SPENGLER, MANAGER DEVELOPMENT & OPERATIONS ENGINEERING.

JACK SPRINGER, MANAGER ENGINEERING (LAX).

ROGER HUTCHINSON, MANAGER TECHNICAL RECORDS.

 
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