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UPS retires MD-11 aircraft fleet after deadly crash
['Max Garland', 'Senior Reporter']
Supply Chain Dive - Latest News
Please let us know if you have feedbackDive Brief:UPS has retired its MD-11 fleet after a deadly November crash featuring the aircraft model and a subsequent grounding of the fleet, the company announced in Q4 earnings results Tuesday.
MD-11s made up about 9% of UPS' air fleet prior to their retirement, with the aircraft primarily being used domestically, per Cirrus Global Advisors.
Much of the MD-11 capacity will be replaced with Boeing 767 aircraft over the next year or so, UPS CEO Carol Tomé said in an earnings call.
Dive Insight:After UPS moved to ground its MD-11 fleet, the carrier made operational adjustments to keep volume flowing during the peak season despite reduced capacity.
UPS incurred about $50 million in incremental lease costs to secure capacity after the MD-11 fleet grounding, the CFO said.