No Surprise -- Economy To Blame

Cargo shipping giant FedEx said Monday it will permanently park 14 of the oldest planes in its airline fleet, in a further effort to slash capacity in a slumping market.

FedEx Express will park 10 Airbus A310 widebodies by May 31, 2009, that were originally slated for removal next year. Four McDonnell Douglas/Boeing MD10-10s will also be parked.

The cost to park the planes -- and the financial hit in removing parts stocks for them -- will amount to a $180 million charge against the carrier's quarterly revenue, reports The Associated Press. Even with the cuts, FedEx Express will still have over 55 A310s and 60 MD10s.

The capacity cuts have worked to provide FedEx with justification for parking older aircraft, to make way for new planes as business improves. FedEx is due to receive a number of new planes in FY 2010, which begins June 1.

As ANN reported, FedEx announced last December it planned to begin parking its Boeing 727 Freighters, the oldest planes in its fleet. Five of the fuel-hungry trijet cargo haulers were slated to be parked in 2009, and 40 more over the next three years... though at the time FedEx conceded those numbers were probably conservative.

FMI: www.fedex.com