FedEx is relocating some pilot groups, including for the Boeing 757 in Europe, to other bases in an effort to save money. FedEx operates more than 100 757-200 (pictured) cargo jets. [Credit: Shutterstock/sockagphoto]
Key Takeaways:
FedEx is closing pilot bases in Anchorage, Los Angeles, and Cologne (Germany) that service MD-11 and Boeing 757 aircraft.
This action is part of a broader, aggressive campaign to eliminate $6 billion in structural costs by fiscal year 2027 and streamline operations due to declining international and e-commerce shipping volumes.
The cost-cutting strategy also includes accelerating the retirement of the MD-11 fleet, rerouting non-priority shipments to ground transport, reducing flight hours, and a company-wide restructuring to combine air, ground, and parcel businesses.
These changes have added tension to ongoing contract negotiations with FedEx pilots, who are currently voting on strike authorization.
Editor’s Note: This article originally appeared on FreightWaves.com.
FedEx will shut down pilot bases in Alaska, California and Germany as part of the company’s aggressive campaign to eliminate billions in structural costs by fiscal year 2027 by streamlining operations and networks, FreightWaves has learned.
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Eric is the Air Cargo Market Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals from the American Society of Business Publication Editors for government coverage and news analysis, and was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. Eric is based in Portland, Oregon. He can be reached for comments and tips at ekulisch@freightwaves.com
