FedEx (FDX, Financial) has strategically reallocated a Boeing 777 freighter from its overnight package delivery network to its daytime operations, which focus on deferred shipment cargo. This shift is part of a broader transformation of its aviation network aimed at addressing declining package volumes, eliminating excess capacity, reducing costs, and enhancing customer service.
The company has introduced a direct flight between Liège, Belgium, and its global hub in Memphis, Tennessee, increasing the route's frequency from five to eight times a week. This adjustment is part of FedEx's color-coded strategy, which segments its fleet based on product categories and demand.
The Boeing 777 has been moved from the "Purple" network, dedicated to overnight express packages, to the "Orange" network, which caters to high-value international cargo such as pharmaceuticals and automotive parts. Liège plays a crucial role in the "Orange" network, facilitating efficient cross-border connections without solely relying on express delivery schedules.
This transformation has been in the works for two years but accelerated after a major contract with the U.S. Postal Service expired. The "Orange" flights compete directly with all-cargo airlines for high-priority, high-yield international freight business.
