According to an April 13th SEC filing, FedEx will permanently remove from service ten Airbus A310-200 aircraft and four Boeing MD10-10 aircraft, along with certain excess aircraft engines.

The fleet will be reduced during the fourth quarter ending May 31st, 2009.

This decision reflects FedEx management's ongoing efforts to optimise the company's express network in light of continued excess aircraft capacity due to weak economic conditions and the expected delivery of newer, more fuel-efficient aircraft in FY2010.

The fleet reduction will result in a non-cash charge of approximately US$180 million for impairment of the value of the aircraft and engines, and will be recorded in Q$ 2009. The company does not expect to be required to make any current or future cash expenditures as a result of the impairment.

A limited amount of the company's total aircraft capacity remains temporarily grounded due to network overcapacity.

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