FedEx Express
| |||||||
Founded | June 18, 1971 | (as Federal Express)||||||
---|---|---|---|---|---|---|---|
Commenced operations | April 17, 1973 | ||||||
AOC # | FDEA140A[1] | ||||||
Hubs |
National Hub Regional Hubs
| ||||||
Fleet size | 727 | ||||||
Destinations | c. 375 | ||||||
FedEx Corporation | |||||||
Headquarters | Memphis, Tennessee, United States | ||||||
Key people | Frederick W. Smith (president & CEO) | ||||||
Employees | 278,000+ (2022) |
FedEx Express is a major American
The company's global "SuperHub" is located at
History
Early history
The concept for what became Federal Express came to Fred Smith in the mid-1960s, while an undergraduate student at Yale.[6][7] For an economics class, he submitted a paper which argued that in modern technological society time meant money more than ever before and with the advent of miniaturized electronic circuitry, very small components had become extremely valuable. He argued that the consumer society was becoming increasingly hungry for mass-produced electronic items, but the decentralizing effect induced by these very devices gave manufacturers tremendous logistic problems in delivering the items. Smith felt that the necessary delivery speed could only be achieved by using air transport. But he believed that the U.S. air cargo system was so inflexible and bound by regulations at that time that it was completely incapable of making really fast deliveries.[6] Plus, the U.S. air cargo industry was highly unsuited to the role. Its system depended on cooperation between companies, as interlining was often necessary to get a consignment from point A to point B, and the industry relied heavily on cargo forwarders to fill hold space and perform doorstep deliveries.[citation needed]
In his paper, Smith proposed a new concept—have one carrier be responsible for a piece of cargo from local pick-up right through to ultimate delivery, operating its own aircraft, depots, posting stations, and delivery vans. To ensure accurate sorting and dispatching of every item of freight, the carrier would fly it from all of its pickup stations to a central clearinghouse, from where the entire operation would be controlled. For years it has been misreported that the professor teaching the course gave the paper the grade of "C",[6] but Fred clarified in a 2004 interview that the grade is not known and the reports of a "C" grade were due to his response to a reporter who asked him what grade he received and his reply was, "I don't know, probably made my usual C."[7][8] Despite the professor's opinion, Smith held on to the idea.[9]
Smith founded Federal Express Corporation in 1971 with $4 million from his inheritance and $91 million in venture capital.
The company started overnight operations on April 17, 1973, with fourteen Dassault Falcon 20s that connected twenty-five cities in the United States.[12] Fred Smith's childhood friend, John Fry of Ardent Studios, sent Ardent partner Terry Manning to the Federal Express home office on Democrat Road near the Memphis Airport with the first package to be put into the system. That night, 186 packages were carried.[12] Services included both overnight and two-day package and envelope delivery services, as well as Courier Pak. Federal Express began to market itself as "the freight service company with 550-mile-per-hour delivery trucks". However, the company began to experience financial difficulties, losing up to a million USD a month. While waiting for a flight home to Memphis from Chicago after being turned down for capital by General Dynamics, Smith impulsively hopped a flight to Las Vegas, where he won $27,000 playing blackjack. The winnings enabled the cash-strapped company to meet payroll the following Monday. "The $27,000 wasn't decisive, but it was an omen that things would get better", Smith says.[13] In the end, he raised somewhere between $50 and $70 million, from twenty of the US's leading risk venture speculators, including such companies as the First National City Bank of New York and the Bank of America in California. At the time, Federal Express was the most highly financed new company in U.S. history, in terms of venture capital.[9]
Federal Express installed its first drop box in 1975 which allowed customers to drop off packages without going to a company local branch.[12] In 1976, the company became profitable with an average volume of 19,000 parcels per day.
Rapid growth
A 1977 legislative change (Public Law 95–163) removed restrictions on the routes operated by all-cargo airlines, and enabled Federal Express to purchase its first large aircraft: seven
In 1980, Federal Express began service to a further 90 cities in the United States. The following year, the company introduced its overnight letter to compete with the U.S. Postal Service's Express Mail, and allowed document shipping for the first time. Later in 1981, it started international operations with service to Canada, and officially opened its "SuperHub" at the Memphis International Airport.[14]
Federal Express' sales topped $1 billion for the first time in 1983.
In the 1970s, with the enormous growth, FedEx needed a method for quality control. They developed the tracking number for internal use to find that packages were moving properly.
FedEx era
In 1994, Federal Express rebranded itself as "FedEx" for marketing purposes, officially adopting a nickname that had been used for years. Also that year, FedEx launched fedex.com as the first transportation web site to offer online package tracking, which allowed customers to conduct business via Internet. In 1995, the company acquired air routes from Evergreen International to start services to China, and opened an Asia and Pacific hub in
In the 1990s, FedEx planned, but later abandoned, a joint service with
, a vice president at the time, was in charge of this proposed venture.In 1998, FedEx merged with Caliber System and reorganized as a holding company, FDX Corporation. In 2000, FDX changed its name to FedEx Corporation and standardized the names of its subsidiaries around the "FedEx" brand. The original "Federal Express" cargo airline changed its name to "FedEx Express" to distinguish its express shipping service from others offered by the FedEx parent company.[12]
In 2001, FedEx Express signed a 7-year sole source contract to transport all Express Mail and Priority Mail for the United States Postal Service. Prior to 2001, the Postal Service contracted with multiple airlines on a regional basis for these services. This contract allowed FedEx to place drop boxes at every USPS post office. In 2007, the contract was extended until September 2013. In 2013, FedEx Express won a new 7-year contract for the services ending in 2020, beating out UPS which launched a competitive bid. In 2017, the Postal Service extended the 2013 contract to 2024. The USPS continues to be the largest customer of FedEx Express.[19]
In December 2006, FedEx Express acquired the British courier company ANC Holdings Limited for £120 million.[20] The acquisition added 35 sort facilities to the FedEx network and the company introduced Newark, Memphis, and Indianapolis routes directly to UK airports instead of stopping at FedEx's European hub at Charles de Gaulle Airport.[21] In September 2007, ANC was rebranded as FedEx UK. FedEx Express also acquired Flying-Cargo Hungary Kft to expand service in Eastern Europe.[11]
Economic downturn
The
In December 2008, FedEx postponed delivery of the new
FedEx Express closed a hub for the first time in its history, when operations at its Asian-Pacific hub at Subic Bay International Airport in the Philippines ceased on February 6, 2009.[24] The operations were transferred to Guangzhou Baiyun International Airport in southern China.[25][26] FedEx Express had planned to open the new Chinese hub in December 2008, but in November 2008, the company delayed the opening until early 2009, citing the need to fully test the new hub.
On June 2, 2009, FedEx opened the new hub building at
On October 27, 2010, FedEx opened its Central and Eastern European hub at Cologne Bonn Airport. The hub features a fully automated sorting system that can process up to 18,000 packages per hour. The roof of the hub features FedEx's largest solar power installation, producing 800,000 kilowatt hours per year.[28]
On December 7, 2018, the company announced the retirement of David Cunningham on December 31, 2018. He was succeeded as CEO and president by Raj Subramaniam.[29][30]
Expansion
On November 6, 2019, FedEx Express announced its return to the
Fleet
Current fleet
As of March 2024[update], the FedEx Express fleet consists of the following aircraft:[35][36]
Aircraft | In service |
Orders | Notes |
---|---|---|---|
Airbus A300-600RF
|
65 | — | Includes the last Boeing 767-300F .Largest operator of its type. |
Boeing 757-200SF
|
114 | — | Largest operator of its type. |
Boeing 767-300F
|
137 | 15[37][38] | Deliveries through 2025. Replacing older Airbus A300-600RF and MD-11F .Largest operator of its type. |
Boeing 777F
|
57 | 2[39] | Deliveries through 2025. Replacing MD-11F. First operator in United States and largest operator of its type. |
McDonnell Douglas MD-11F
|
46 | — | Largest operator of its type. To be retired and replaced by Boeing 777F .
|
Total | 419 | 17 | |
FedEx Feeder Contracted Fleet | |||
ATR 42-300F
|
18 | — | |
ATR 72-200F
|
19 | — | |
ATR 72-600F | 19 | 11 | Launch customer. Deliveries began in 2020.[40] |
Cessna 208B Super Cargomaster
|
234 | — | Largest operator of its type. |
Cessna 408 SkyCourier | 18 | 32 | Launch customer. Deliveries began in May 2022.[41][42] |
Total | 308 | 43 |
Note: "F" stands for freighter aircraft. "SF" stands for special freighter aircraft, which are converted from passenger aircraft.
FedEx Express operates the world's largest cargo air fleet with more than 650 aircraft,
In 2007, FedEx revealed plans to acquire 90
FedEx Express was scheduled to be the launch airline for the
On December 15, 2011, FedEx announced an order for 27
On July 2, 2012, FedEx announced an order for an additional 15 Boeing 767-300Fs to replace its MD-10 and A310-200 aircraft. As part of this announcement, it converted four of its Boeing 777 freighter order to 767-300Fs, for a total of 19 new 767s.[52] The first Boeing 767-300F was delivered to the airline on September 4, 2013.[53]
With one of the world's largest aircraft fleets, FedEx Express is the largest contributor to the United States Civil Reserve Air Fleet in terms of aircraft pledged.[54]
The first Dassault Falcon 20C delivered to FedEx (operated with the registration N8FE) is on display at the Steven F. Udvar-Hazy Center of the National Air and Space Museum at the Smithsonian Institution.
Historical fleet
Aircraft | Total | Introduced | Retired | Replaced by | Remarks |
---|---|---|---|---|---|
Airbus A310-200F
|
49 | 1994 | 2016 | Boeing 757-200SF
|
Includes N450FE, first A310 prototype.[55] |
Airbus A310-300F
|
21 | 2000 | 2020 | Boeing 767-300ERF
|
Last commercial flight was January 4, 2020. |
Boeing 727-100F
|
75 | 1977[56] | 2013[56] | Boeing 757-200SF
|
Last commercial flight was June 21, 2013. FedEx continues to sell the 727 engine hush kit developed with Pratt & Whitney.[57] Including N217FE, the last Boeing 727 ever built.[58] |
Boeing 727-200F
| |||||
Boeing 737-200C
|
5 | 1978 | 1981 | None | |
Boeing 747-100SF | 11 | 1989 | 1996 | McDonnell Douglas MD-11F
|
Acquired from Flying Tiger Line merger |
Boeing 747-200F
|
11 | ||||
Dassault Falcon 20 | 33 | 1973[59] | 1985[60] | Boeing 727[59] | |
Douglas DC-8-73CF | 6 | 1989 | 1991 | None | Acquired from Flying Tiger Line merger |
McDonnell Douglas DC-10-10F
|
25 | 1980 | 2021 | Boeing 767-300F
|
[61] |
McDonnell Douglas DC-10-30F | 6 | 1980 | 2022 | Boeing 767-300F
McDonnell Douglas MD-11 |
|
McDonnell Douglas DC-10-10F
|
64 | 1980 | 2021 | Boeing 767-300F
|
[61] |
McDonnell Douglas DC-10-30F
|
18 | 1980 | 2023 | Boeing 767-300F
|
[62] |
FedEx Feeder
FedEx Feeder is the branding applied to smaller FedEx Express
In the United States, FedEx Express operates FedEx Feeder on a dry lease program where contractors rent aircraft from FedEx to operate routes as assigned by the company. The contractor is responsible for providing a crew to operate the aircraft and coordinating all maintenance. In exchange, FedEx pays a monthly administrative fee and reimburses the contractor for any expenses related to the operation and maintenance of the aircraft. Because the aircraft is owned by FedEx, it may not be used by the contractor for any purpose other than necessary for operating FedEx Feeder routes assigned to it.[63]
Outside the United States, contractors operating FedEx Feeder routes may sometimes fly their own aircraft. In that case, the aircraft may not be in the FedEx Feeder livery and the contractor may be able to carry cargo for other companies with the FedEx cargo.[64]
List of contract carriers:
- ASL Airlines Ireland (Largest contractor, European partner)
- Airwork
- Baron Aviation Services
- Cargojet Airways
- Carson Air (regional routes in Western Canada)
- Corporate Air
- CSA Air
- Empire Airlines
- IFL Group
- Merlin Airways
- Morningstar Air Express – Also operates mainline FedEx service within Canada
- Mountain Air Cargo
- Solinair
- Swiftair
- West Air Inc.
- Wiggins Airways
Environmental initiatives
Delivery fleet
In 2003, FedEx Express introduced
FedEx claimed that the hybrid truck in the 2003 test decreased soot by 96% and emissions by 65%. It also claimed that the truck achieved more than 50% better fuel consumption while still having the same cargo capacity as a conventional truck.[67]
In 2009, FedEx Express partnered with Iveco and started a new test program of hybrid electric/diesel vans. The test program consisted of ten hybrid vans deployed in the Italian cities of Milan and Turin. FedEx claimed the new vans would have a 26.5% reduction in fuel consumption and a decrease in carbon dioxide emissions of 7.5 tons when compared to FedEx's standard vehicle. The trial was set to conclude in May 2010 and FedEx would then evaluate if the vans should be deployed on a larger scale.[66]
In July 2009, FedEx Express partnered with Freightliner and Eaton Corporation to convert 92 delivery trucks into hybrids. The conversions boosted FedEx's fleet of hybrid-electric vehicles by more than 50 percent to 264. The trucks were placed into service in California, in Los Angeles, San Diego and San Francisco.[69]
In November 2009, FedEx Express purchased 51 gasoline-electric hybrid vehicles from Azure Dynamics, to be put into service in The Bronx, New York City. The Bronx became FedEx's first all hybrid station. The addition would bring FedEx Express' fleet of hybrid electric and electric vehicles to 325.[70]
Aircraft modernization
FedEx Express, like most cargo airlines, operates a fleet of older and less efficient aircraft when compared to passenger airlines.[71] However, the company has been making an effort to phase out older aircraft, especially its trijets, and replace them with newer twin-jet models.
The trijet Boeing 727 was replaced in 2013 with the twin-jet Boeing 757; which the company says is 47 percent more fuel-efficient.
Since 2013, FedEx has been purchasing new built 767 and 777 freighters, taking advantage of lower pricing as Boeing worked to replace both models. The purchase set off a major shuffle in the FedEx fleet. The 777 aircraft have replaced the older trijet MD-11 on long-range, international routes, freeing up the MD-11 fleet to fly shorter routes. That move allowed the old tri-jet DC-10 aircraft to be retired in 2023.[72] The new planes also allowed the older, smaller Airbus A310 freighters to be retired in 2020. As more planes are delivered through 2025, FedEx plans to retire the remaining MD-11 aircraft, along with some Airbus A300 freighters.
Major incidents and accidents
Over the history of Federal Express and FedEx Express, there have been eight incidents in its mainline fleet, plus an attempted hijacking, two deaths and eight aircraft hull losses. This table only lists mainline fleet crashes that happened under FedEx Express' direct operations, and does not list either crashes related to the FedEx Feeder fleet, or incidents or accidents associated with the Flying Tiger Line after its acquisition by Federal Express until its operations were fully merged with Federal Express.
Flight number |
Date | Registration | Aircraft type | Fatalities/Occupants | Details |
---|---|---|---|---|---|
705 | 1994-04-07 | N306FE[73] | McDonnell Douglas DC-10-30
|
0/4 | Auburn Calloway, a Federal Express pilot (and former military pilot) facing possible termination for inconsistencies in his claimed prior experience, attempted to hijack the aircraft and crash it. He intended to make the crash appear as an accident in order for his family to receive his Federal Express insurance money. The crew of Flight 705 were able to subdue Calloway and land the aircraft safely. The crew's injuries disabled them from flying professionally ever again. Calloway was eventually sentenced to two life sentences in prison. The aircraft was repaired and returned to service.[74] |
1406 | 1996-09-05 | N68055[75] | McDonnell Douglas DC-10-10
|
0/5 | Bound for Logan International Airport, the aircraft experienced an in-flight fire in the cabin cargo compartment, and diverted to Stewart International Airport in Newburgh, New York to make an emergency landing. After landing, the fire consumed the aircraft.[76][77] |
14 | 1997-07-31 | N611FE[78] | McDonnell Douglas MD-11 | 0/5 | Arriving at Anchorage International Airport at the end of a scheduled flight, the number 3 (right-side) engine contacted the runway during a rough landing which caused the aircraft to flip over. The crew escaped through a cockpit window before the aircraft was destroyed in the ensuing fire.[79]
|
87 | 1999-10-17 | N581FE[80] | McDonnell Douglas MD-11 | 0/2 | Upon landing at Subic Bay International Airport from Shanghai Hongqiao International Airport, the aircraft overran the whole length of the runway and plunged into the bay where it was completely submerged. It was subsequently written off.[81] |
1478 | 2002-07-26 | N497FE[82] | Boeing 727-232
|
0/3 | On final approach to Tallahassee Regional Airport from Memphis International Airport, the aircraft's landing gear hit a tree about 70 feet (21 m) high and 3,650 feet (1,110 m) short of the runway which caused it to crash into the trees and open field short of the runway into parked construction vehicles, coming to rest about 1,000 feet short of the runway and facing in the opposite direction of its flight path. The aircraft was destroyed in the ensuing fire.[83][84]
|
647 | 2003-12-18 | N364FE[85] | McDonnell Douglas MD-10-10
|
0/7 | After landing at Metropolitan Oakland International Airport, the right main landing gear collapsed and caused the aircraft to veer off the runway. The aircraft was destroyed in the subsequent fire.[86]
|
630 | 2006-07-28 | N391FE[87] | McDonnell Douglas MD-10-10
|
0/3 | After landing at Seattle-Tacoma International Airport, the left main landing gear collapsed. Following the landing gear failure, the number 1 (left-side) engine contacted the runway and caused a small fire and structural damage to the aircraft. The aircraft was written off.[88]
|
80 | 2009-03-23 | N526FE[89] | McDonnell Douglas MD-11 | 2/2 | The first fatal accident in the mainline history of FedEx Express, this aircraft suffered multiple bounced landings on its nose before crashing at Narita International Airport while landing in windy conditions. The aircraft touched down and bounced on its nose gear back into the air, coming down again on its nose gear before bouncing back up. The nose gear impacted one final time before the aircraft banked to the left and the wing clipped the ground. The aircraft burst into flames and came to rest upside down, killing both the captain and first officer, the only occupants.[90] |
910 | 2016-10-28 | N370FE[91] | McDonnell Douglas MD-10-10 | 0/2 | Upon landing on Runway 10L at Fort Lauderdale–Hollywood International Airport, the left engine caught fire on the landing roll. The port side gear then collapsed during the fire approximately 6,600 feet (2,000 m) down the runway. The aircraft was written off.[92] |
Northrop Grumman Guardian
In 2003 FedEx Express partnered with the
FedEx Express became the first air carrier to deploy the Guardian on a commercial flight in September 2006, when it equipped an MD-11 freighter with the pod.
Sorting facilities
Americas
- Brazil
- Campinas – Brazilian Hub
- Canada
- Toronto–Pearson – Canadian Hub
- United States
- Anchorage, AK – Transit Hub
- Fort Worth, TX– Southwest Hub
- Greensboro, NC – Mid-Atlantic Hub
- Indianapolis, IN – National Hub
- Miami, FL – Latin America Hub[97]
- Memphis, TN – World Super Hub[98]
- Newark, NJ – East Coast Hub
- Oakland, CA – West Coast Hub
Asia
- China
- Guangzhou – Asia-Pacific Hub
- Shanghai–Pudong – Mainland China Hub[99]
- India
- Japan
- Osaka–Kansai – North Pacific Regional Hub[100]
- Tokyo–Narita
- Singapore
- Singapore– South Pacific Regional Hub
- South Korea
- Taiwan
- United Arab Emirates
- Dubai–International – Middle East Hub[101]
Europe
- France
- Paris–Charles de Gaulle – European Hub
- Belgium
- Liege (formerly operated by TNT Express)
- Germany
- United Kingdom
See also
- Air transportation in the United States
- Aviation
- DHL Aviation
- FedEx Corporation
- List of airlines of the United States
- List of airports in the United States
- TNT Airways
- Transportation in the United States
- UPS Airlines
- USPS
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{{cite news}}
:|author=
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{{cite web}}
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