November 21, 2024

New Look for FedEx: Aircraft and Vehicles Get Fresh Branding

FedEx is updating its branding with a new logo for both aircraft and ground vehicles as part of a strategic move to merge its Express and Ground networks, aiming for increased efficiency and cost reduction.

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Photo Source: FreightWaves

FedEx has begun rolling out a new paint scheme for its fleet of freighter aircraft and ground vehicles as part of an ongoing effort to unify its Express and Ground networks. This strategic initiative aims to increase operational efficiency and cut costs by streamlining overlapping infrastructure.

Starting this year, FedEx has started covering its cargo jets with new graphics that reflect the unified brand under the One FedEx model. According to Justin Brownlee, Senior Vice President for Flight Operations and Network Planning, this rebranding effort has been applied to 18 freighters so far. The new design features larger FedEx lettering and a more modern look, eliminating the previous identification of aircraft as FedEx Express.

FedEx shared images of the new aircraft livery, which marks a significant visual shift for the company.

The update isn’t limited to aircraft; FedEx plans to gradually rebrand its ground vehicle fleet as well. Caitlin Adams Maier, Director of Global Media and Public Affairs, stated that the new branding will be applied to any new vehicles purchased and those undergoing body repairs. The process will take several years to complete, ensuring that equipment remains available for use as much as possible.

Last month, FedEx announced the consolidation of FedEx Express, FedEx Ground, and FedEx Services into a single organization, Federal Express Corp. This restructuring is part of the Network 2.0 transformation, which aims to merge delivery operations and optimize resources. The company has already combined operations at over 50 locations and plans to complete the integration in Canada by October.

For years, FedEx Express and FedEx Ground operated separately, catering to different types of deliveries. However, with profit margins narrowing, new CEO Raj Subramaniam decided that the disjointed operations needed to be streamlined. The ultimate goal is to achieve $2 billion in annualized savings through this consolidation.

Photo Source: Business Insider

The synchronization of Express and Ground operations is expected to generate significant cost savings. However, the process presents challenges, such as modifying Ground facilities to handle airfreight containers and harmonizing technology systems.

FedEx plans to reduce its daytime domestic air network by 60% after its contract with the U.S. Postal Service expires at the end of September. This change, while representing a revenue loss, will allow FedEx to cut costs by streamlining its underutilized daytime air operations. The company is also dealing with overstaffing, with about 900 more pilots than needed.

FedEx is also launching several new routes to serve non-parcel customers through its Orange network and is partnering with a Chinese cargo airline to establish an intra-China route.

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