UPS and FedEx Ground MD-11 Cargo Fleets After Deadly Louisville Crash

UPS (NYSE: UPS) and FedEx (NYSE: FDX) have grounded their fleets of McDonnell Douglas MD-11 cargo aircraft following a catastrophic crash in Louisville that killed at least 14 people — the deadliest incident in UPS Airlines history. The decision came after Boeing (NYSE: BA), which acquired the MD-11 program through its 1997 merger with McDonnell Douglas, recommended a temporary suspension of all MD-11 operations pending further engineering review.

“Out of an abundance of caution and in the interest of safety, we have made the decision to temporarily ground our MD-11 fleet,” UPS said in a November 7 statement. The grounding affects roughly 27 aircraft… about 9% of the UPS Airlines fleet. FedEx followed suit the next day, confirming it has parked all 28 of its MD-11s, which represent approximately 4% of its 700-aircraft network. The company said contingency plans are being implemented to minimize delivery disruptions.

Boeing said in a statement that it had “recommended to the three operators of MD-11 aircraft that they suspend flight operations while additional engineering analysis is performed.” In addition to UPS and FedEx, Western Global Airlines operates the remaining MD-11s still in commercial service worldwide, bringing the total active fleet to about 70 aircraft.The move follows the Nov. 4 crash of UPS Flight 2976, which erupted into flames shortly after takeoff from Louisville Muhammad Ali International Airport, the global air hub for UPS. The MD-11 was en route to Honolulu when it went down in an industrial area less than a mile from the runway, destroying two nearby buildings and igniting multiple secondary fires.

The National Transportation Safety Board said Friday that cockpit recordings captured a warning bell sounding repeatedly seconds after takeoff as pilots attempted to stabilize the plane. The jet reached only about 100 feet of altitude before plunging back to the ground, according to preliminary radar data. NTSB member Todd Inman told reporters that a preliminary report will be released within 30 days. Early evidence suggests one of the plane’s three engines detached from the left wing during the takeoff roll.

The crash has prompted a sweeping safety review of the MD-11 airframe, a trijet first delivered in 1990 and long retired from passenger service. Production of the model ended in 2000.While the MD-11 accounts for a small share of total aircraft at UPS and FedEx, the grounding could still ripple through global logistics networks that rely on the carriers to move goods for Amazon, Walmart, Target, and the U.S. Postal Service. UPS is the Postal Service’s largest air carrier for Priority Mail and express products.

Both companies emphasized that alternative aircraft and routing plans would be deployed to limit service disruption. Shares of UPS and FedEx were little changed in late trading Friday, while Boeing fell 1.4% amid renewed scrutiny of its aging freighter programs.

About UPS

United Parcel Service, Inc. (NYSE: UPS) is a global leader in logistics and package delivery, operating in more than 220 countries and territories. Founded in 1907 and headquartered in Atlanta, Georgia, UPS provides transportation, distribution, and supply-chain services for individuals and businesses worldwide.

About FedEx Corporation

FedEx Corporation (NYSE: FDX) is a global transportation and logistics company providing express, ground, freight, and e-commerce services across 220 countries and territories. Founded in 1971 and headquartered in Memphis, Tennessee, FedEx operates one of the world’s largest all-cargo air fleets and employs more than 500,000 team members worldwide.

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